[6-K] Banco Santander S.A. Current Report (Foreign Issuer)
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FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of July, 2025
Commission File Number: 001-12518
(Exact name of registrant as specified in its charter)
Ciudad Grupo Santander
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F ☒ Form 40-F ☐
BANCO SANTANDER, S.A.
________________________
TABLE OF CONTENTS
| Part 1 | |||||
Interim consolidated directors’ report | 3 | ||||
Interim unaudited consolidated financial statements | 98 | ||||
| Part 2 | |||||
Supplemental information | 161 | ||||
| Part 1. Interim consolidated directors' report and interim unaudited consolidated financial statements | |||||
| January - June | 2025 | ||||
Index
3 | Interim consolidated directors' report | |||||||
3 | SIGNIFICANT EVENTS IN THE PERIOD | |||||||
4 | KEY CONSOLIDATED DATA | |||||||
6 | BUSINESS MODEL | |||||||
7 | GROUP FINANCIAL INFORMATION | |||||||
7 | General background | |||||||
8 | Highlights of the period | |||||||
10 | Income statement | |||||||
17 | Balance sheet | |||||||
20 | Solvency ratios | |||||||
21 | Risk management | |||||||
25 | The Santander share | |||||||
27 | FINANCIAL INFORMATION BY SEGMENT | |||||||
45 | SUSTAINABILITY | |||||||
46 | CORPORATE GOVERNANCE | |||||||
47 | APPENDIX | |||||||
48 | Financial information | |||||||
77 | Alternative Performance Measures | |||||||
89 | Interim condensed consolidated financial statements | |||||||
92 | Glossary | |||||||
93 | Important information | |||||||
95 | Main risks and uncertainties | |||||||
96 | Other disclosures required by the Bank of Spain | |||||||
98 | Interim condensed consolidated financial statements | |||||||
This report was approved by the board of directors on 29 July 2025, following a favourable report from the audit committee. Important information regarding this report can be found on pages 92 and 93.
Significant events Key consolidated data Business model | Group financial information | Financial information by segment | Sustainability Corporate governance | Appendix |  Index | ||||||||||||||||||||||||||||||
SIGNIFICANT EVENTS IN THE PERIOD
In Q2 2025, Santander announced the entry into an agreement with Erste Group Bank AG (Erste) to sell approximately 49% of its stake in Santander Bank Polska S.A. and the 50% of the asset management company (TFI) which was not integrated within Santander Polska to Erste, for a total cash amount of approximately EUR 7 billion. In addition, Santander announced its intention to acquire 100% of Santander Consumer Bank Polska by purchasing the 60% stake currently held by Santander Bank Polska S.A. (approximately EUR 0.7 billion), thereby bringing the business fully within the perimeter of Grupo Santander and excluding it from the scope of the sale. Santander and Erste also announced a strategic collaboration to leverage the strengths and international presence of both institutions in Corporate & Investment Banking (CIB) and to enable Erste to benefit from Santander’s global payments platforms. The transaction is subject to customary closing conditions, including regulatory approvals, such as that of the Polish Financial Supervision Authority (KNF). Completion is expected around the end of 2025. The abovementioned transaction will hereinafter be referred to as the 'Poland disposal', based on the assumption that it will be completed under the terms described above.
In accordance with IFRS 5 requirements, the business subject to the Poland disposal has been classified as 'non-current assets/liabilities held for sale' and the related results have been reported under 'discontinued operations'. Accordingly:
•In the Group’s consolidated balance sheet, the assets associated with the Poland disposal are classified under the 'non-current assets held for sale' line item and the related liabilities under 'liabilities associated with non-current assets held for sale'. This classification applies solely to the balance sheet as at 30 June 2025 and does not affect balance sheets for prior periods.
•In the statutory income statement, the results associated with the business subject to the Poland disposal are reported under a single line in the consolidated income statement — 'profit/(loss) after tax from discontinued operations' — for results corresponding to both 2025 and 2024. Consequently, the results from the Poland disposal perimeter are excluded line by line from the breakdown of continuing operations in both periods.
However:
•In the underlying income statement, both at the Group and the primary and secondary segment levels (which are presented on an underlying basis only), the results from Poland continue to be reported line by line and disaggregated, as they were in previous quarterly disclosures given the fact that the management of Santander Polska remains unchanged until the Poland disposal is completed. This reporting approach is consistent with the information used internally in management reporting, as well as with other public Group disclosures.
•For the same reason, all management metrics included in this report have been calculated including Poland, i.e. maintaining the same perimeter that existed at the time of the announcement of the Poland disposal. However, if we were to exclude Poland, the Group's main management ratios would not be materially affected.
For further information, see the 'Alternative performance measures' section in the appendix to this report.
Additionally, after the close of Q2 2025, Santander announced it has reached an agreement to acquire 100% of TSB Banking Group plc's (TSB) share capital from Banco de Sabadell, S.A. (Sabadell) with a valuation of GBP 2.65 billion (approximately EUR 3.1 billion) in an all-cash transaction. This agreement does not impact the information presented is this report nor is it expected to affect future publications until the transaction is completed. The transaction is subject to Sabadell shareholder approval and the corresponding regulatory approvals.
| January - June 2025 |  | 3 | ||||||
Significant events Key consolidated data Business model | Group financial information | Financial information by segment | Sustainability Corporate governance | Appendix | Index | ||||||||||||||||||||||||||||||
KEY CONSOLIDATED DATA
| BALANCE SHEET (EUR million) | Jun-25 | Mar-25 | % | Jun-25 | Jun-24 | % | Dec-24 | ||||||||||||||||
| Total assets | 1,815,888 | 1,845,177 | (1.6) | 1,815,888 | 1,786,261 | 1.7 | 1,837,081 | ||||||||||||||||
| Loans and advances to customers | 1,010,727 | 1,064,416 | (5.0) | 1,010,727 | 1,065,596 | (5.1) | 1,054,069 | ||||||||||||||||
| Customer deposits | 1,008,229 | 1,081,894 | (6.8) | 1,008,229 | 1,037,646 | (2.8) | 1,055,936 | ||||||||||||||||
| Total funds | 1,307,359 | 1,386,326 | (5.7) | 1,307,359 | 1,309,903 | (0.2) | 1,348,422 | ||||||||||||||||
| Total equity | 108,985 | 110,514 | (1.4) | 108,985 | 103,648 | 5.1 | 107,327 | ||||||||||||||||
Note: 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 30 June 2025 loans and advances to customers would have been EUR 1,048,951 million; customer deposits EUR 1,060,208 million and total funds EUR 1,366,729 million. For further information, see the 'Significant events in the period', 'Alternative performance measures' and 'Financial information' sections in this report. | |||||||||||||||||||||||
| INCOME STATEMENT (EUR million) | Q2'25 | Q1'25 | % | H1'25 | H1'24 | % | 2024 | ||||||||||||||||
| Net interest income | 10,590 | 10,621 | (0.3) | 21,211 | 22,056 | (3.8) | 43,787 | ||||||||||||||||
| Total income | 14,503 | 14,679 | (1.2) | 29,182 | 29,035 | 0.5 | 58,380 | ||||||||||||||||
| Net operating income | 8,395 | 8,423 | (0.3) | 16,818 | 16,552 | 1.6 | 33,231 | ||||||||||||||||
| Profit before tax | 4,415 | 4,689 | (5.8) | 9,104 | 8,724 | 4.4 | 17,347 | ||||||||||||||||
| Profit attributable to the parent | 3,431 | 3,402 | 0.9 | 6,833 | 6,059 | 12.8 | 12,574 | ||||||||||||||||
Note: net operating income as total income minus operating expenses.
EPS, PROFITABILITY AND EFFICIENCY (%) 1 | Q2'25 | Q1'25 | % | H1'25 | H1'24 | % | 2024 | ||||||||||||||||
| EPS (euros) | 0.22 | 0.21 | 2.4 | 0.43 | 0.37 | 18.5 | 0.77 | ||||||||||||||||
| RoE | 13.7 | 13.4 | 13.6 | 12.6 | 13.0 | ||||||||||||||||||
| RoTE | 16.9 | 16.6 | 16.7 | 15.9 | 16.3 | ||||||||||||||||||
| RoTE (post-AT1) | 16.2 | 15.8 | 15.98 | 15.1 | 15.5 | ||||||||||||||||||
| RoA | 0.82 | 0.81 | 0.81 | 0.74 | 0.76 | ||||||||||||||||||
| RoRWA | 2.38 | 2.34 | 2.36 | 2.07 | 2.18 | ||||||||||||||||||
Efficiency ratio 2 | 41.2 | 41.8 | 41.5 | 41.6 | 41.8 | ||||||||||||||||||
UNDERLYING INCOME STATEMENT 2 (EUR million) | Q2'25 | Q1'25 | % | H1'25 | H1'24 | % | 2024 | ||||||||||||||||
| Net interest income | 11,338 | 11,378 | (0.4) | 22,716 | 23,457 | (3.2) | 46,668 | ||||||||||||||||
| Total income | 15,473 | 15,537 | (0.4) | 31,010 | 31,050 | (0.1) | 62,211 | ||||||||||||||||
| Net operating income | 9,097 | 9,048 | 0.5 | 18,145 | 18,137 | 0.0 | 36,177 | ||||||||||||||||
| Profit before tax | 5,116 | 5,187 | (1.4) | 10,303 | 9,508 | 8.4 | 19,027 | ||||||||||||||||
| Underlying profit attributable to the parent | 3,431 | 3,402 | 0.9 | 6,833 | 6,059 | 12.8 | 12,574 | ||||||||||||||||
| Changes in constant euros: | |||||||||||||||||||||||
| Q2'25 / Q1'25: NII: +2.5%; Total income: +2.4%; Net operating income: +3.4%; Profit before tax: +1.1%; Attributable profit: +3.5%. | |||||||||||||||||||||||
| H1'25 / H1'24: NII: +1.3%; Total income: +4.6%; Net operating income: +5.3%; Profit before tax: +13.4%; Attributable profit: +18.3%. | |||||||||||||||||||||||
4 | | January - June 2025 | ||||||
Significant events Key consolidated data Business model | Group financial information | Financial information by segment | Sustainability Corporate governance | Appendix | Index | ||||||||||||||||||||||||||||||
| SOLVENCY (%) | Jun-25 | Mar-25 | Jun-25 | Jun-24 | Dec-24 | ||||||||||||||||||
| Phased-in CET1 ratio | 13.0 | 12.9 | 13.0 | 12.5 | 12.8 | ||||||||||||||||||
| Phased-in total capital ratio | 17.2 | 17.2 | 17.2 | 16.7 | 17.4 | ||||||||||||||||||
CREDIT QUALITY (%)1 | Jun-25 | Mar-25 | Jun-25 | Jun-24 | Dec-24 | ||||||||||||||||||
Cost of risk 2, 3 | 1.14 | 1.14 | 1.14 | 1.21 | 1.15 | ||||||||||||||||||
| NPL ratio | 2.91 | 2.99 | 2.91 | 3.02 | 3.05 | ||||||||||||||||||
| NPL coverage ratio | 67.2 | 65.7 | 67.2 | 66.5 | 64.8 | ||||||||||||||||||
| MARKET CAPITALIZATION AND SHARES | Jun-25 | Mar-25 | % | Jun-25 | Jun-24 | % | Dec-24 | ||||||||||||||||
| Shares (millions) | 14,885 | 15,152 | (1.8) | 14,885 | 15,494 | (3.9) | 15,152 | ||||||||||||||||
| Number of shareholders | 3,508,261 | 3,435,876 | 2.1 | 3,508,261 | 3,526,649 | (0.5) | 3,485,134 | ||||||||||||||||
| Share price (euros) | 7.027 | 6.196 | 13.4 | 7.027 | 4.331 | 62.3 | 4.465 | ||||||||||||||||
| Market capitalization (EUR million) | 104,599 | 93,885 | 11.4 | 104,599 | 67,098 | 55.9 | 67,648 | ||||||||||||||||
| Tangible book value per share (euros) | 5.50 | 5.46 | 5.50 | 4.94 | 5.24 | ||||||||||||||||||
| Price / Tangible book value per share (X) | 1.28 | 1.13 | 1.28 | 0.88 | 0.85 | ||||||||||||||||||
CUSTOMERS (thousands)4 | Jun-25 | Mar-25 | % | Jun-25 | Jun-24 | % | Dec-24 | ||||||||||||||||
| Total customers | 176,431 | 174,769 | 1.0 | 176,431 | 168,243 | 4.9 | 172,537 | ||||||||||||||||
| Active customers | 104,733 | 104,179 | 0.5 | 104,733 | 101,277 | 3.4 | 103,262 | ||||||||||||||||
| Digital customers | 61,100 | 60,651 | 0.7 | 61,100 | 57,000 | 7.2 | 59,317 | ||||||||||||||||
OTHER DATA4 | Jun-25 | Mar-25 | % | Jun-25 | Jun-24 | % | Dec-24 | ||||||||||||||||
| Number of employees | 204,330 | 207,137 | (1.4) | 204,330 | 209,553 | (2.5) | 206,753 | ||||||||||||||||
Number of branches5 | 7,683 | 7,985 | (3.8) | 7,683 | 8,348 | (8.0) | 8,086 | ||||||||||||||||
Note: for Argentina and any grouping which includes it, the variations in constant euros have been calculated considering the Argentine peso exchange rate on the last working day for each of the periods presented. For further information, see the 'Alternative performance measures' section in the appendix to this report. Certain figures contained in this report, have been subject to rounding to enhance their presentation. Accordingly, in certain instances, the sum of the numbers in a column or a row in tables contained in this report may not conform exactly to the total figure given for that column or row. | |||||
| 1. | For further information, see the 'Alternative performance measures' section in the appendix to this report. | ||||
| 2. | In addition to financial information prepared in accordance with International Financial Reporting Standards (IFRS) and derived from our consolidated financial statements, this report contains certain financial measures that constitute alternative performance measures (APMs) as defined in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority (ESMA) on 5 October 2015, and other non-IFRS measures, including the figures related to “underlying” results, which do not include factors that are outside the ordinary course of our business, or have been reclassified within the underlying income statement. Further details are provided in the 'Alternative performance measures' section of the appendix to this report. For further details on the APMs and non-IFRS measures used, including their definition or a reconciliation between any applicable management indicators and the financial data presented in the annual consolidated financial statements prepared under IFRS, please see our 2024 Annual Financial Report, published in the CNMV on 28 February 2025, our 20-F report for the year ending 31 December 2024 filed with the SEC in the United States on 28 February 2025 as well as the 'Alternative performance measures' section of the appendix to this report. | ||||
| 3. | Allowances for loan-loss provisions over the last 12 months / Average loans and advances to customers over the last 12 months. | ||||
| 4. | Customers, employees and branches include Poland. | ||||
| 5. | For June 2025 data and all previous periods, we have included the CartaSur points of sale and the banking service points in Argentina, while we have excluded operational locations that do not provide customer service in Colombia. | ||||
January - June 2025 | | 5 | ||||||
Significant events Key consolidated data Business model | Group financial information | Financial information by segment | Sustainability Corporate governance | Appendix | Index | ||||||||||||||||||||||||||||||
OUR BUSINESS MODEL
| CUSTOMER FOCUS | Building a digital bank with branches | |||||||||||||||||||||||||
→ We continue to build a digital bank with branches, with a multichannel offering to fulfil all our customers' financial needs. | 176 mn | 105 mn | ||||||||||||||||||||||||
| total customers | active customers | |||||||||||||||||||||||||
| SCALE | Global and in-market scale | |||||||||||||||||||||||||
→ Our global and in-market scale helps us to improve our local banks' profitability, adding value and network benefits. → Our activities are organized under five global businesses: Retail & Commercial Banking (Retail), Digital Consumer Bank (Consumer), Corporate & Investment Banking (CIB), Wealth Management & Insurance (Wealth) and Payments. → Our five global businesses support value creation based on the profitable growth and operational leverage that ONE Santander provides. |  | |||||||||||||||||||||||||
| 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. | ||||||||||||||||||||||||||
Our corporate culture
The Santander Way remains unchanged to continue to deliver for all our stakeholders.
Our purpose |  | ||||||||||
To help people and businesses prosper | |||||||||||
| Our aim | |||||||||||
| To be the best open financial services platform, by acting responsibly and earning the lasting loyalty of our people, customers, shareholders and communities | |||||||||||
| Our how | |||||||||||
Everything we do should be Simple, Personal and Fair | |||||||||||
6 | | January - June 2025 | ||||||
Significant events Key consolidated data Business model | Group financial information | Financial information by segment | Sustainability Corporate governance | Appendix | Index | ||||||||||||||||||||||||||||||
| General background | |||||||||||||||||||||||||||||||||||
GROUP FINANCIAL INFORMATION
General background
Grupo Santander's operating environment in Q2 2025 was characterized by a moderate global economic slowdown, with falling interest rates and a decline in inflation across most of our footprint. Labour markets continued to have relatively low unemployment rates across most of our countries. Geopolitical and commercial tensions remained and there was increased volatility in global financial markets. In the second half of the year, we expect the main macroeconomic trends to continue and commercial and geopolitical uncertainty to persist.
Country | GDP Change1 | Economic performance | |||||||||
 | Eurozone | +1.5% | GDP growth in Q1 2025 surprised on the upside, driven by a pick up in goods exports to the US before tariff increases came into effect. As a result, part of this growth is expected to reverse in the coming quarters. Inflation stabilized at the ECB's target (2% in June), allowing for an additional cut in official interest rates to 2% in June. In the labour market, the unemployment rate remained at historic lows (6.3% in May). | ||||||||
 | Spain | +2.8% | In Q2 2025, the Spanish economy maintained the positive signs seen of the beginning of the year, pointing to solid growth, albeit more contained in the year, as a whole driven by internal demand. The labour market remained strong, with the number of people enrolled in social security at record levels. Inflation rose year-on-year to 2.3% in June, driven by energy and food prices. | ||||||||
 | United Kingdom | +1.3% | After an excellent Q1 2025 boosted by bringing forward exports in anticipation of US tariff increases, GDP contracted in April. The recent performance of economic indicators suggests a weaker second quarter. The labour market continued to cool, with the unemployment rate rising to 4.7% in April and wage growth moderating to 5.0% in May. In June, inflation grew slightly to 3.6% and core inflation increased to 3.7%. In this context, the Bank of England cut rates to 4.25% in May. | ||||||||
 | Portugal | +1.6% | The economy shrank in Q1 2025 due to lower private consumption, gross capital formation and exports. National accounts show that household savings remained high (12.3% of disposable income) and household consumption remained low despite higher salaries. Employment growth accelerated and the unemployment rate fell to 6.3% in May. Headline inflation rose to 2.4% in June, showing some rigidity in certain components. | ||||||||
 | Poland | +3.2% | The economy returned to growth above 3% in Q1 2025, a trend likely to continue in the coming quarters driven by the recovery in the investment cycle. The labour market remained strong, with the unemployment rate at low levels (5.1% in June). The slowdown in wage growth improved inflation expectations for 2025. In June, inflation eased to 4.1% year-on-year (4.9% in March), allowing the central bank to cut interest rates to 5.25% in May and to 5.0% in July. | ||||||||
 | United States | +2.0% | The economy remained solid, with few signs of tariff-driven inflation so far. However, the increase in tariffs is expected to eventually push inflation higher and dampen economic activity. There are signs that consumption is moderating and that the front-loading of purchases to avoid tariff hikes is reversing. The labour market is cooling gradually, with the unemployment rate at 4.1% in June. The Fed held interest rates, waiting on more visibility regarding the final impact from tariffs. | ||||||||
 | Mexico | +0.8% | The economy remained weak at the beginning of Q2 2025, after a brief rebound at the end of Q1 2025, related to early exports ahead of tariff increases. The labour market remained resilient, with low unemployment (2.7%), although job creation stalled. The annual inflation rate, both headline and core inflation, picked up in the quarter to 4.3% and 4.2%, respectively in June. The central bank continued to cut the official interest rate in its two latest meetings, -100 bps in total to 8% in June, and suggested further cuts in the future, but potentially at a more gradual pace. | ||||||||
 | Brazil | +2.9% | The economy slowed at the beginning of Q2 2025, though it maintained strong momentum in the services sector and a very low unemployment rate (below 7%). The annual inflation rate moderated, but remained high (5.4% in June) and medium-term expectations remained above target. The central bank continued its cycle of interest rate hikes with two increases in Q2 2025, +75 bps in total to 15%, and suggested that it will now hold rates steady for an extended period. | ||||||||
 | Chile | +2.3% | The economy showed signs of a moderate slowdown in Q2 2025, after the pick up in exports in Q1 2025. Inflation, though still high, is clearly easing (4.1% in June) and is expected to converge towards the central bank of Chile's 3% target in early 2026. The central bank kept interest rates unchanged but suggested that it may resume the rate-cutting cycle that it paused at the end of 2024. | ||||||||
 | Argentina | +5.8% | The economy consolidated its recovery in Q2 2025. Inflation, though elevated, fell further with the monthly rate below 2% in May, unaffected by the sharper pace of ARS depreciation in mid-April after the fixed exchange rate regime was lifted, allowing the exchange rate to float freely between 1,000-1,400 ARS/USD. The agreement signed with the IMF in April, which included the disbursement of additional funds, together with a sound fiscal position, supported the continued decline in inflation expectations. | ||||||||
1.Year-on-year changes for Q1 2025.
January - June 2025 | | 7 | ||||||
Significant events Key consolidated data Business model | Group financial information | Financial information by segment | Sustainability Corporate governance | Appendix | Index | ||||||||||||||||||||||||||||||
| Highlights of the period | |||||||||||||||||||||||||||||||||||
| Highlights of the period: Main figures | |||||||||||
| Q2'25 ATTRIBUTABLE PROFIT | |||||||||||||||||
| EUR 3,431 mn | |||||||||||||||||
| +1% in euros | /Q1'25 | ||||||||||||||||
| +4% in constant euros | |||||||||||||||||
| H1'25 ATTRIBUTABLE PROFIT | |||||||||||||||||
| EUR 6,833 mn | |||||||||||||||||
| +13% in euros | /H1'24 | ||||||||||||||||
| +18% in constant euros | |||||||||||||||||
RoTE (post-AT1) | |||||||||||||||||
| 16.0% | |||||||||||||||||
| +92 bps | / H1'24 | ||||||||||||||||
| VOLUMES AND REVENUE | |||||||||||||||||
| Loan and advances to customers | Customer funds | ||||||||||||||||
| +1% | +6% | ||||||||||||||||
| Net interest income | Net fee income | ||||||||||||||||
| +1% | +9% | ||||||||||||||||
| Note: YoY changes in constant euros and Argentina in current euros. | |||||||||||||||||
| EFFICIENCY | |||||||||||||||||
| 41.5% | |||||||||||||||||
| -0.1 pp /H1'24 | |||||||||||||||||
| COST OF RISK | |||||||||||||||||
| 1.14% | |||||||||||||||||
| -7 bps /Jun-24 | |||||||||||||||||
CET11 | |||||||||||||||||
| +0.3pp | 13.0% | ||||||||||||||||
| +0.1 pp /Mar-25 | |||||||||||||||||
uIn Q2 2025, profit attributable to the parent was EUR 3,431 million, a fifth consecutive quarterly record, rising 1% compared to Q1 2025. In constant euros, profit rose 4% quarter-on-quarter, with a solid performance in total income (+2%), driven by net interest income, even in a less favourable interest rate environment, and lower provisions, with controlled costs.
uAttributable profit increased 13% compared to H1 2024 to EUR 6,833 million in H1 2025. In constant euros, profit rose 18% boosted by higher total income, due to positive contributions from net interest income and net fee income, with costs flat in real terms and a cost of risk improvement.
Additionally, the year-on-year comparison was favoured by the temporary levy on revenue earned in Spain which was recorded in full in Q1 2024 compared to the quarterly accrual of the banking tax expected for H1 2025 and by the charges in H1 2024 following the discontinuation of the merchant platforms in Germany and Superdigital in Latin America.
uProfit increased double digit year-on-year in most global businesses.
uThese results reflect a strong performance in H1 2025 and put us on track to meet our 2025 targets.
uProfitability improved strongly year-on-year. RoTE (post-AT1) stood at 16.0% in H1 2025, compared to 15.1% in the same period of 2024.
uSustained earnings per share growth, increasing 19% year-on-year to EUR 43.5 cents, boosted by the positive trends in profit and the share buybacks executed in the last 12 months.
uIn terms of business volumes, growth of customer funds continued to outpace loans and advances to customers as we continued to focus on active capital management, disciplined capital allocation and profitable growth.
Gross loans and advances to customers (excluding reverse repos) rose 1% year-on-year in constant euros, supported by increases in Consumer, Payments and Wealth, while in Retail and CIB decreased.
Customer funds (customer deposits excluding repos plus mutual funds) rose 6% year-on-year in constant euros, increasing across global businesses, underpinned by double-digit growth in mutual funds and a rise in deposits in both demand and time deposits.
uIn a less favourable environment than initially expected, shaped by geopolitical and trade tensions, total income was EUR 31 billion, flat year-on-year (+5% in constant euros) and on track to meet our 2025 target. Of note was the positive net interest income performance (+1% in constant euros and +4% excluding Argentina), with most global businesses growing. Higher customer activity and network benefits were reflected in net fee income (+9% in constant euros), growing in most global businesses except Consumer, impacted by new regulation in Germany and the drop in new car registrations in the EU.
uThe structural changes we have implemented to move towards a simpler and more integrated model through ONE Transformation continued to contribute to better costs, efficiency gains and profitable growth. Costs decreased slightly in current euros, in line with our 2025 year-end target. The efficiency ratio improved to 41.5%, the best efficiency ratio in more than 15 years, with notable improvements in Payments and Wealth.
uCredit quality remains robust, supported by positive employment across our footprint. The NPL ratio improved 11 bps year-on-year to 2.91%. Total loan-loss reserves reached EUR 22,441 million, resulting in an NPL coverage ratio of 67%.
uThe Group's cost of risk improved 7 bps year-on-year to 1.14%, in line with our target for 2025. Cost of risk of Retail and Consumer, which accounted for approximately 80% of the Group's net loan-loss provisions, improved to 0.89% and 2.09%, respectively, compared to the same period in 2024.
uAs at end June 2025, the CET1 ratio stood at 13.0%, +0.1 pp quarter-on-quarter. We had 54 bps of capital through attributable profit generation which more than offset the -29 bp impact related to capital distributions (including the deduction for the accrual of shareholder remuneration against profit earned in Q2 2025, in line with our 50% payout target2, and AT1 costs), -6 bps from regulatory headwinds (mostly relating to capital model changes) and -8 bps from markets and others.
Note: in this section, results are presented on an underlying basis and loans and advances to customers, customer funds and other metrics include Poland, in line with previously published quarterly information, i.e. maintaining the same perimeter that existed at the time of the announcement of the Poland disposal. For further information, see the 'Significant events in the period' and 'Alternative performance measures' sections in this report.
1.CET1 ratio on phased-in basis, calculated in accordance with the transitory treatment of the CRR.
2.In line with our current ordinary shareholder remuneration policy of approximately 50% of the Group's reported profit (excluding non-cash, non-capital ratios impact items), divided approximately equally between cash dividends and share buybacks. The implementation of the shareholder remuneration policy is subject to future corporate and regulatory decisions and approvals.
8 | | January - June 2025 | ||||||
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| Highlights of the period | |||||||||||||||||||||||||||||||||||
| Think Value | |||||||||||
| SHAREHOLDER REMUNERATION | |||||||||||||||||
| EUR million | |||||||||||||||||
 | |||||||||||||||||
| +19% | higher than cash dividends against 2023 results | ||||||||||||||||
| TNAVps + CASH DPS | |||||||||||||||||
n Cash DPS: €21.0 cents | |||||||||||||||||
| +16% |  | ||||||||||||||||
| / Jun-24 | |||||||||||||||||
uOn 4 April 2025, the AGM approved a final cash dividend charged against 2024 results in the gross amount of EUR 11.00 cents per share paid on 2 May 2025. Including the interim cash dividend paid in November 2024 (EUR 10.00 cents), the total cash dividend per share paid against 2024 results was EUR 21.00 cents, around 19% more than the dividends paid against 2023 results.
uAdditionally, we completed two share buyback programmes for a total of EUR 3,112 million. The Group has now repurchased more than 14% of its outstanding shares since we began our buybacks in 2021.
uIncluding these cash dividends and share buybacks, total shareholder remuneration against 2024 results was EUR 6,287 million, 13% higher than the remuneration against 2023 results, distributed approximately equally between cash dividends and share buybacks.
uOn 5 May 2025, Santander announced its intention to distribute approximately 50% of the capital that is expected to be released from the Poland disposal, through a share buyback of approximately EUR 3.2 billion in early 2026, as part of additional buybacks to distribute excess capital and, as a result, share buybacks could exceed the intended distribution of up to EUR 10 billion1. We reiterated this objective on 1 July 2025 following the announcement of having reached an agreement to buy TSB.
uAt the end of the quarter, TNAV was EUR 5.50. Including the dividends charged against 2024 results, TNAV per share increased 16% year-on-year.
| Think Customer | |||||||||||
# OF CUSTOMERS (Jun-25) | |||||||||||||||||
| Total customers: | 176 | mn | |||||||||||||||
| Active customers: | 105 | mn | |||||||||||||||
uWe continue to implement our global platforms across our businesses, such as Gravity in Spain, which enhances customer experience through digital channels and reduces transaction costs.
uAll these developments, along with other initiatives focused on delivering a great customer experience and improving service quality, allow us to rank in the top 3 for NPS² in most of our markets and to continue growing the Group’s customer base.
uAs a result, total customers stood at 176 million, with a year-on-year increase of 8 million, and active customers grew 3 million, reaching 105 million.
| Think Global | |||||||||||
Contribution to Group revenue 3 | ||||||||||||||||||||
| Retail |  | 50% | ||||||||||||||||||
| Consumer |  | 20% | ||||||||||||||||||
| CIB |  | 14% | ||||||||||||||||||
| Wealth |  | 7% | ||||||||||||||||||
| Payments |  | 9% | ||||||||||||||||||
H1 2025 data. Year-on-year changes in constant euros.
uIn Retail, double-digit attributable profit growth to EUR 3,687 million, driven by a rise in total income, supported by a strong net fee income performance and higher net interest income excluding Argentina, increasing in most units. Costs declined in real terms and provisions were stable.
uThe efficiency ratio stood at 39.4% and cost of risk improved to 0.89%. RoTE (post-AT1) increased to 17.2%.
uIn Consumer, attributable profit was EUR 1,042 million, with 11% growth in profit before tax driven by solid performances in net interest income and provisions. These strong results were offset by the impact of lower fiscal benefits following reduced electric vehicle demand.
uThe efficiency ratio stood at 41.5%, cost of risk improved to 2.09% and RoTE (post-AT1) was 10.4%.
uIn CIB, attributable profit increased double digits to EUR 1,534 million, driven by higher income, supported by a strong net fee income performance, especially in Global Transaction Banking, and higher gains on financial transactions in Q1 2025 in Global Markets.
uThe efficiency ratio stood at 43.7%. RoTE (post-AT1) improved 2.7 pp to 20.8%.
uIn Wealth, attributable profit amounted to EUR 948 million, also rising double-digits, driven by net fee income, the good performance of our joint ventures in Insurance and our Portfolio Investments business.
uThe efficiency ratio improved 1.5 pp to 35.7% and RoTE (post-AT1) was 67.3%.
uIn Payments, attributable profit reached EUR 335 million, boosted by double-digit growth in net interest income and net fee income, with costs falling 1% in real terms, more than offsetting higher provisions in Cards in Brazil and Mexico in part due to higher activity.
uCost of risk was 7.54%. In PagoNxt, EBITDA margin reached 28.8% (+8.7 pp year-on-year).
1.On 5 February 2025, the board announced its intention to distribute EUR 10 billion to shareholders through share buybacks charged against 2025 and 2026 results and against the expected capital excess. This share buyback target includes i) buybacks that are part of the existing shareholder remuneration policy, and ii) additional buybacks following the publication of annual results to distribute year-end excesses of CET1 capital. The implementation of the shareholder remuneration policy and additional buybacks are subject to future corporate and regulatory decisions and approvals.
2.Net Promoter Score, internal benchmark of individual customers' satisfaction audited by Stiga/Deloitte in H1 2025.
3.As % of total operating areas, excluding the Corporate Centre.
January - June 2025 | | 9 | ||||||
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| Statutory income statement | |||||||||||||||||||||||||||||||||||
Grupo Santander results
As a result of the announcement of the Poland disposal and in accordance with IFRS 5 requirements, in the statutory income statement, results associated with the business subject to the Poland disposal are reported under a single line in the consolidated income statement — 'profit/(loss) after tax from discontinued operations' — for results corresponding to both 2025 and 2024. Consequently, the results from the Poland disposal perimeter are excluded line by line from the breakdown of continuing operations in both periods. For further information, see the 'Significant events in the period' section of this report.
| Grupo Santander. Summarized income statement | ||||||||||||||||||||
| EUR million | ||||||||||||||||||||
| Change | Change | |||||||||||||||||||
| Q2'25 | Q1'25 | % | H1'25 | H1'24 | % | |||||||||||||||
| Net interest income | 10,590 | 10,621 | (0.3) | 21,211 | 22,056 | (3.8) | ||||||||||||||
Net fee income1 | 3,143 | 3,199 | (1.8) | 6,342 | 6,162 | 2.9 | ||||||||||||||
Gains or losses on financial assets and liabilities and exchange differences2 | 364 | 668 | (45.5) | 1,032 | 931 | 10.8 | ||||||||||||||
| Dividend income | 383 | 88 | 335.2 | 471 | 490 | (3.9) | ||||||||||||||
| Share of results of entities accounted for using the equity method | 171 | 161 | 6.2 | 332 | 291 | 14.1 | ||||||||||||||
Other operating income/expenses (net)3 | (148) | (58) | 155.2 | (206) | (895) | (77.0) | ||||||||||||||
| Total income | 14,503 | 14,679 | (1.2) | 29,182 | 29,035 | 0.5 | ||||||||||||||
| Operating expenses | (6,108) | (6,256) | (2.4) | (12,364) | (12,483) | (1.0) | ||||||||||||||
| Administrative expenses | (5,304) | (5,434) | (2.4) | (10,738) | (10,883) | (1.3) | ||||||||||||||
| Staff costs | (3,320) | (3,403) | (2.4) | (6,723) | (6,825) | (1.5) | ||||||||||||||
| Other general administrative expenses | (1,984) | (2,031) | (2.3) | (4,015) | (4,058) | (1.1) | ||||||||||||||
| Depreciation and amortization | (804) | (822) | (2.2) | (1,626) | (1,600) | 1.6 | ||||||||||||||
| Provisions or reversal of provisions | (677) | (573) | 18.2 | (1,250) | (1,598) | (21.8) | ||||||||||||||
| Impairment or reversal of impairment of financial assets not measured at fair value through profit or loss (net) | (3,447) | (3,077) | 12.0 | (6,524) | (6,275) | 4.0 | ||||||||||||||
| Impairment on other assets (net) | (45) | (102) | (55.9) | (147) | (289) | (49.1) | ||||||||||||||
| Gains or losses on non-financial assets and investments, net | (34) | 2 | — | (32) | 365 | — | ||||||||||||||
| Negative goodwill recognized in results | (1) | 23 | — | 22 | — | — | ||||||||||||||
| Gains or losses on non-current assets held for sale not classified as discontinued operations | 224 | (7) | — | 217 | (31) | — | ||||||||||||||
| Profit or loss before tax from continuing operations | 4,415 | 4,689 | (5.8) | 9,104 | 8,724 | 4.4 | ||||||||||||||
| Tax expense or income from continuing operations | (1,043) | (1,324) | (21.2) | (2,367) | (2,707) | (12.6) | ||||||||||||||
| Profit from the period from continuing operations | 3,372 | 3,365 | 0.2 | 6,737 | 6,017 | 12.0 | ||||||||||||||
| Profit or loss after tax from discontinued operations | 350 | 376 | (6.9) | 726 | 575 | 26.3 | ||||||||||||||
| Profit for the period | 3,722 | 3,741 | (0.5) | 7,463 | 6,592 | 13.2 | ||||||||||||||
| Profit attributable to non-controlling interests | (291) | (339) | (14.2) | (630) | (533) | 18.2 | ||||||||||||||
| Profit attributable to the parent | 3,431 | 3,402 | 0.9 | 6,833 | 6,059 | 12.8 | ||||||||||||||
| EPS (euros) | 0.22 | 0.21 | 2.4 | 0.43 | 0.37 | 18.5 | ||||||||||||||
| Diluted EPS (euros) | 0.22 | 0.21 | 2.4 | 0.43 | 0.37 | 18.4 | ||||||||||||||
| Memorandum items: | ||||||||||||||||||||
| Average total assets | 1,815,203 | 1,855,729 | (2.2) | 1,835,466 | 1,792,428 | 2.4 | ||||||||||||||
| Average stockholders' equity | 99,904 | 101,501 | (1.6) | 100,703 | 96,151 | 4.7 | ||||||||||||||
| Note: the summarized income statement groups some lines of the consolidated statutory income statement on page 90 as follows: | |||||
1.‘Commission income’ and ‘Commission expense’. | |||||
2.‘Gain or losses on financial assets and liabilities not measured at fair value through profit or loss, net’; ‘Gain or losses on financial assets and liabilities held for trading, net’; ‘Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss’; ‘Gain or losses on financial assets and liabilities measured at fair value through profit or loss, net’; ‘Gain or losses from hedge accounting, net’; and ‘Exchange differences, net’. | |||||
3.‘Other operating income’; ‘Other operating expenses’; ’Income from insurance and reinsurance contracts’; and ‘Expenses from insurance and reinsurance contracts’. | |||||
10 | | January - June 2025 | ||||||
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| Statutory income statement | |||||||||||||||||||||||||||||||||||
| STATUTORY INCOME STATEMENT | |||||||||||
In accordance with IFRS 5 requirements, results associated with the business subject to the Poland disposal are reported under a single line in the consolidated income statement — 'profit/(loss) after tax from discontinued operations' — for results in both 2025 and 2024. For further information, see the 'Significant events in the period' section of this report.
Results performance compared to H1 2024
In H1 2025, profit attributable to the parent totalled EUR 6,833 million, after a record Q2 2025 for the fifth record quarter in a row, supported by the good performances of our global businesses.
Compared to the EUR 6,059 million recorded in H1 2024, profit attributable to the parent in H1 2025 was 13% higher year-on-year.
Total income
Total income amounted to EUR 29,182 million, 1% up year-on-year.
•Net interest income (NII) totalled EUR 21,211 million, 4% lower than H1 2024, mainly due to the impact from the sharp fall in interest rates in Argentina on our businesses, especially Retail and CIB, and the decrease in Wealth.
This decline was partially offset by the good performances in Consumer's businesses, driven by active margin management and higher volumes, and Payments, supported by increased activity levels.
| Net interest income | |||||
| EUR million | |||||
•Net fee income amounted to EUR 6,342 million, up 3% compared to H1 2024, with solid performances across all global businesses except Consumer, where DCB Europe's net fee income was impacted by new insurance regulation in Germany and the drop in new car registrations in the EU.
Of note were the increases in CIB, mainly driven by Global Transaction Banking, in Wealth, due to strong performance in Private Banking and Santander Asset Management (SAM), and in Payments, due to higher activity levels.
| Net fee income | |||||
| EUR million | |||||
•Gains or losses on financial assets and liabilities and exchange differences reached EUR 1,032 million (EUR 931 million in H1 2024) mainly driven by higher results in Global Markets in CIB and the Corporate Centre.
•Dividend income was EUR 471 million (EUR 490 million in H1 2024).
•Income from companies accounted for by the equity method reached EUR 332 million, compared to EUR 291 million in H1 2024, driven by strong results in Insurance and the Portfolio Investments business in Wealth.
•Other operating income recorded a loss of EUR 206 million, compared to a EUR 895 million loss in H1 2024, which was affected by the larger hyperinflation adjustment in Argentina and the temporary levy on revenue earned in Spain, which was recorded in full in Q1 2024 (EUR 335 million), whereas in H1 2025 the expected tax on income obtained in Spain for the year accrued under 'Tax expense or income from continuing operations'.
In summary, a resilient performance in total income reflecting our diversification and global scale, even in the current interest rate environment.
| Total income | |||||
| EUR million | |||||
January - June 2025 | | 11 | ||||||
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| Statutory income statement | |||||||||||||||||||||||||||||||||||
Operating expenses
Operating expenses in H1 2025 amounted to EUR 12,364 million, 1% lower year-on-year, reflecting our progress in transformation.
Our cost management continued to focus on structurally improving our efficiency and, as a result, we remain one of the most efficient banks in the world.
We continued to drive our business transformation plan, ONE Transformation, across our footprint, reflected in greater operational leverage and better commercial dynamics.
| Operating expenses | |||||
| EUR million | |||||
Provisions or reversal of provisions
Provisions (net of provisions reversals) amounted to EUR 1,250 million. In H1 2024, this line totalled EUR 1,598 million, affected by the charge in PagoNxt following the discontinuation of our Superdigital platform in Latin America.
Impairment or reversal of impairment of financial assets not measured at fair value through profit or loss (net)
Impairment of financial assets not measured at fair value through profit or loss (net) was EUR 6,524 million and included provisions which strengthen the balance sheet after having updated macroeconomic parameters in Brazil’s credit provisioning models. In H1 2024, the impairment was EUR 6,275 million.
Impairment on other assets (net)
The impairment on other assets (net) was EUR 147 million. In H1 2024, the impairment on other assets totalled EUR 289 million, including the charges in PagoNxt following the discontinuation of our merchant platform in Germany.
Gains or losses on non-financial assets and investments (net)
Net gains on non-financial assets and investments recorded a loss of EUR 32 million in H1 2025. In H1 2024, net gains were EUR 365 million, which included the capital gain of EUR 352 million generated upon closing the agreement with Sodexo in Brazil.
Negative goodwill recognized in results
In H1 2025, negative goodwill recognized in results was EUR 22 million relating to the acquisition of CrediScotia from Scotiabank which expands Consumer's presence in Peru. There was no negative goodwill recorded in H1 2024.
Gains or losses on non-current assets held for sale not classified as discontinued operations
This item, which mainly includes impairment of foreclosed assets recorded a EUR 217 million gain in H1 2025 which included a capital gain of EUR 231 million from the sale of Santander’s remaining 30.5% stake in CACEIS. In H1 2024, this line recorded a loss of EUR 31 million.
Profit or loss before tax from continuing operations
Profit before tax was EUR 9,104 million in H1 2025, up 4% year-on-year, supported by the solid performance in net fee income, our cost discipline and the impact of the full recognition of the temporary levy on revenue earned in Spain in Q1 2024 (EUR 335 million) in the other operating income line and the charge in H1 2024 following the aforementioned discontinuation of platforms in PagoNxt.
Tax expense or income from continuing operations
Total income tax in H1 2025 amounted to EUR 2,367 million which includes EUR 174 million corresponding to the quarterly accrual of expected tax on income obtained in Spain for the year. In H1 2024, income tax was EUR 2,707 million.
Profit or loss after tax from discontinued operations
Profit from discontinued operations totalled EUR 726 million in H1 2025 and EUR 575 million in H1 2024. This line includes the results associated with the Poland disposal, which increased year-on-year driven by a strong revenue performance and lower provisions.
Profit attributable to non-controlling interests
Profit attributable to non-controlling interests amounted to EUR 630 million in H1 2025 compared to EUR 533 million in H1 2024.
Profit attributable to the parent
Profit attributable to the parent rose to a new record at EUR 6,833 million in H1 2025, compared to EUR 6,059 million in H1 2024. This 13% increase year-on-year, was driven by strong net fee income performances across most of our global businesses and lower costs.
Additionally, this year-on-year comparison was favoured by: i) the full charge in Q1 2024 of the temporary levy on income earned in Spain, compared to the accrual in 2025 of the expected tax on income obtained in Spain for the year, and ii) a EUR 243 million charged in H1 2024 in PagoNxt following the discontinuation of our merchant platforms in Germany and Superdigital in Latin America.
12 | | January - June 2025 | ||||||
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| Underlying income statement | |||||||||||||||||||||||||||||||||||
| UNDERLYING INCOME STATEMENT | |||||||||||||||||||||||||||||
→ Fifth consecutive quarter of record profit, boosted by solid performances across our global businesses. → We continue to drive profitable growth and strong efficiency, supported by ONE Transformation. → Risk indicators were robust, supported by good risk management and low unemployment. | |||||||||||||||||||||||||||||
| Attributable profit | RoTE (post-AT1) | RoRWA | |||||||||||||||||||||||||||
| EUR 6,833 million | +13% in euros | 16.0% | 2.36% | ||||||||||||||||||||||||||
| +18% in constant euros | +0.9 pp | +0.3 pp | |||||||||||||||||||||||||||
| Note: changes vs. H1 2024. | |||||||||||||||||||||||||||||
In contrast to the statutory income statement, in the underlying income statement, results obtained in Poland continue to be reported line by line and disaggregated, as they were in previous quarterly disclosures given that the management of Santander Polska remains unchanged until the Poland disposal is completed.
For the same reason, all management metrics included in this report have been calculated including Poland, i.e. maintaining the same perimeter that existed at the time of the announcement of the Poland disposal. For further information, see the 'Significant events in the period' and 'Alternative performance measures' sections in this report.
Results performance compared to H1 2024
The Group presents, both at the total Group level and for each of the business units, the changes in euros registered in the income statement, as well as variations excluding the exchange rate effect (i.e. in constant euros, except for Argentina and any grouping which includes it), understanding that the latter provide a better analysis of the Group’s management. For further information, see the 'Alternative performance measures' section in this report.
At the Group level, exchange rates had a negative impact of 4.7 pp on total income and a positive impact of 4.1 pp on administrative expenses and amortizations, mainly due to the depreciation of the Brazilian real and the Mexican peso.
To better understand the business trends, we reclassified certain items under some headings of the underlying income statement.
These reclassifications between the statutory and underlying income statements include:
In H1 2025:
•As previously explained, in the statutory income statement, the results associated with the business subject to the Poland disposal are reported in the 'profit/(loss) after tax from discontinued operations' line.
However, in the underlying income statement, the results from Poland are disaggregated across the corresponding line items as they were in previous quarterly disclosures.
In H1 2024:
•In the statutory income statement, the results associated with the business subject to the Poland disposal are reported in the 'profit/(loss) after tax from discontinued operations' line.
However, in the underlying income statement, the results from Poland are disaggregated across the corresponding line items as they were in previous quarterly disclosures.
•The temporary levy on revenue earned in Spain amounted to EUR 335 million in Q1 2024, which was reclassified from total income to other gains (losses) and provisions.
•The recognition of provisions to strengthen the balance sheet in Brazil, amounted to EUR 352 million gross in Q2 2024 (EUR 174 million net of tax and non-controlling interests).
Summarized underlying income statement (EUR million) | ||||||||||||||||||||||||||
| Change | Change | |||||||||||||||||||||||||
| Q2'25 | Q1'25 | % | % excl. FX | H1'25 | H1'24 | % | % excl. FX | |||||||||||||||||||
| Net interest income | 11,338 | 11,378 | (0.4) | 2.5 | 22,716 | 23,457 | (3.2) | 1.3 | ||||||||||||||||||
| Net fee income | 3,315 | 3,369 | (1.6) | 1.1 | 6,684 | 6,477 | 3.2 | 9.0 | ||||||||||||||||||
Gains (losses) on financial transactions 1 | 391 | 678 | (42.3) | (40.2) | 1,069 | 957 | 11.7 | 15.5 | ||||||||||||||||||
| Other operating income | 429 | 112 | 283.0 | 291.5 | 541 | 159 | 240.3 | 232.9 | ||||||||||||||||||
| Total income | 15,473 | 15,537 | (0.4) | 2.4 | 31,010 | 31,050 | (0.1) | 4.6 | ||||||||||||||||||
| Administrative expenses and amortizations | (6,376) | (6,489) | (1.7) | 1.0 | (12,865) | (12,913) | (0.4) | 3.7 | ||||||||||||||||||
| Net operating income | 9,097 | 9,048 | 0.5 | 3.4 | 18,145 | 18,137 | 0.0 | 5.3 | ||||||||||||||||||
| Net loan-loss provisions | (3,017) | (3,161) | (4.6) | (1.0) | (6,178) | (6,243) | (1.0) | 6.1 | ||||||||||||||||||
| Other gains (losses) and provisions | (964) | (700) | 37.7 | 40.1 | (1,664) | (2,386) | (30.3) | (28.5) | ||||||||||||||||||
| Profit before tax | 5,116 | 5,187 | (1.4) | 1.1 | 10,303 | 9,508 | 8.4 | 13.4 | ||||||||||||||||||
| Tax on profit | (1,368) | (1,446) | (5.4) | (3.6) | (2,814) | (2,916) | (3.5) | 1.0 | ||||||||||||||||||
| Profit from continuing operations | 3,748 | 3,741 | 0.2 | 2.8 | 7,489 | 6,592 | 13.6 | 18.9 | ||||||||||||||||||
| Net profit from discontinued operations | — | — | — | — | — | — | — | — | ||||||||||||||||||
| Consolidated profit | 3,748 | 3,741 | 0.2 | 2.8 | 7,489 | 6,592 | 13.6 | 18.9 | ||||||||||||||||||
| Non-controlling interests | (317) | (339) | (6.5) | (3.9) | (656) | (533) | 23.1 | 26.5 | ||||||||||||||||||
| Net capital gains and provisions | — | — | — | — | — | — | — | — | ||||||||||||||||||
| Profit attributable to the parent | 3,431 | 3,402 | 0.9 | 3.5 | 6,833 | 6,059 | 12.8 | 18.3 | ||||||||||||||||||
Underlying profit attributable to the parent 2 | 3,431 | 3,402 | 0.9 | 3.5 | 6,833 | 6,059 | 12.8 | 18.3 | ||||||||||||||||||
1. Includes exchange differences.
2. Excludes net capital gains and provisions.
January - June 2025 | | 13 | ||||||
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| Underlying income statement | |||||||||||||||||||||||||||||||||||
Additionally, regarding results that fall outside the ordinary course of our business and are therefore excluded from underlying income statement:
In H1 2025:
•The ‘net capital gains and provisions’ line includes the following two events of the same value but opposite signs:
•A capital gain in Q2 2025 of EUR 231 million from the sale of Santander’s remaining 30.5% stake in CACEIS, in line with the announcement made in Q4 2024.
•A one-off charge of EUR 467 million in Q2 2025 (EUR 231 million, net of tax and minority interests), which strengthens the balance sheet after having updated macroeconomic parameters in Brazil’s credit provisioning models, in accordance with IFRS 9 regulations, which resulted in increased provisions, reflecting expectations of a more complex economic environment.
In H1 2024:
•There were no impacts outside the ordinary course of our business and therefore no amount was recorded under the ‘net capital gains and provisions’ line.
For further information on the reconciliation between the statutory and underlying income statements, see the 'Alternative performance measures' section in this report.
All in all, profit attributable to the parent and underlying profit attributable to the parent were the same, EUR 6,833 million in H1 2025 and EUR 6,059 million in H1 2024. This represents a 13% year-on-year increase,+18% in constant euros.
This year-on-year comparison was favoured by the temporary levy on revenue earned in Spain which was recorded in full in Q1 2024 compared to accrual-based approach applied in 2025 and by the recognition in H1 2024 of the impacts in PagoNxt following the discontinuation of our merchant platforms in Germany and Superdigital in Latin America.
Total income amounted to EUR 31,010 million in H1 2025, flat compared to H1 2024. In constant euros, total income rose 5% year-on-year, as follows:
•Net interest income (NII) performed well, with a 1% year-on-year increase despite a lower interest rate environment and the strong impact of the sharp fall in interest rates in Argentina. Excluding Argentina, NII rose 4%. By business:
•In Retail, NII was flat. Excluding Argentina, it rose 3%, due to good performances in Chile (lower cost of deposits), the UK (driven by higher mortgage lending profitability and lower cost of deposits) and in Mexico and Poland due to higher activity.
•In Consumer, NII rose 5% supported by our good margin management across key markets and also by higher volumes in DCB Europe and South America and the CrediScotia acquisition in Peru.
•In CIB, NII increased 4%, even with a negative impact from Argentina. Excluding it, NII grew 13% driven by the strong increase in activity (Global Markets).
•In Wealth, NII declined 16%, mainly in Private Banking, impacted by the less favourable interest rate environment across most of our markets, despite higher volumes.
•In Payments, NII rose 22%, with growth in both PagoNxt and Cards, boosted by higher activity.
| Net interest income | |||||
| EUR million | |||||
 | constant euros | ||||
•Net fee income grew 9% year-on-year driven by widespread growth across all businesses except Consumer. By business:
•In Retail, net fee income increased 8%, supported by mutual funds, foreign exchange and insurance fees.
•In Consumer, net fee income fell 6%, despite strong growth in the US (auto servicing fees), mainly due to DCB Europe, which was impacted by new insurance regulation in Germany and the drop in new car registrations in the EU.
•In CIB, it increased 9%, driven by the three main business lines, but especially Global Transaction Banking (GTB) and Global Banking (GB) in the US, boosted by our US Banking Build-Out (US BBO) initiative.
•In Wealth, net fee income rose 20%, with good growth in Private Banking and Asset Management due to good commercial dynamics in Spain, Latin America and the US.
•In Payments, net fee income rose 15% boosted by both PagoNxt and Cards driven by higher activity across countries.
This positive net fee income performance keeps us on track to achieve our mid-high single digit growth target for 2025.
| Net fee income | |||||
| EUR million | |||||
| constant euros | ||||
•Gains on financial transactions rose 16%, boosted by higher results in Global Markets in CIB, mainly in Brazil and Mexico.
•Other operating income in H1 2025 improved compared to the same period in 2024, driven by a less negative impact from the hyperinflation adjustment in Argentina.
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| Underlying income statement | |||||||||||||||||||||||||||||||||||
This positive revenue performance keeps us on track to achieve our 2025 target of reaching a revenue level of EUR 62 billion in the year, similar to the revenue recorded in 2024.
| Total income | |||||
| EUR million | |||||
| constant euros | ||||
Administrative expenses and amortizations in H1 2025 amounted to EUR 12,865 million, in line with H1 2024 (+4% in constant euros). In real terms (excluding the impact of average inflation and in constant euros), they were flat year-on-year. The efficiency ratio stood at 41.5%, improving 10 bps year-on-year.
Our cost management remained focused on structurally improving our efficiency and maintaining our position as one of the most efficient global banks. We continued to progress with our business model transformation plan, ONE Transformation, which provides greater operational leverage, improving business dynamics and promoting leaner and more agile structures.
By business and in constant euros as follows:
•In Retail, costs were up 2%. In real terms, they fell 1%, reflecting our transformation efforts through the simplification and the implementation of our global platform. The efficiency ratio stood at 39.4%.
•In Consumer, costs increased 3% year-on-year. In real terms, rose 1% as our transformation savings offset our investments in leasing and check-out lending platforms and in Openbank. The efficiency ratio stood at 41.5%.
•In CIB, costs rose 8%, +5% in real terms, due to the investment in new products and capabilities to drive growth. We maintained a leading position among peers with an efficiency ratio of 43.7%.
•In Wealth, costs rose 9%. In real terms, they increased 6%, reflecting our investments to reinforce Private Banking teams and new capabilities to address the increase in commercial activity. The efficiency ratio improved 1.5 pp year-on-year to 35.7%.
•In Payments, costs rose 2% but decreased 1% in real terms, even after investments in platforms in both Cards and PagoNxt. The efficiency ratio stood at 42.2%, a 4.6 pp improvement year-on-year.
| Operating expenses | |||||
| EUR million | |||||
| constant euros | ||||
Net operating income in H1 2025 amounted to EUR 18,145 million, in line with H1 2024. In constant euros, it rose 5%, underpinned by the good performances in NII, net fee income and gains on financial transactions and a lower impact from the hyperinflation adjustment.
| Net operating income | |||||
| EUR million | |||||
| constant euros | ||||
Net loan-loss provisions in H1 2025 amounted to EUR 6,178 million, a 1% decrease year-on-year.
In constant euros, they increased 6%, mainly due to: i) higher provisions in Payments, driven by the strong widespread growth in the Cards portfolio, especially in Brazil and Mexico, which were also impacted by model changes and, in Brazil, by a worse macroeconomic environment, and ii) the increase in provisions at the Corporate Centre to accelerate NPL ratio reductions, improving the Group's credit quality.
The cost of risk stood at 1.14%, in line with the Group’s 2025 target.
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| Underlying income statement | |||||||||||||||||||||||||||||||||||
| Net loan-loss provisions | |||||
| EUR million | |||||
| constant euros | ||||
Other gains (losses) and provisions registered a of EUR 1,664 million loss, compared to EUR 2,386 million loss in H1 2024. This is mainly due to the charge in H1 2024 following the discontinuation of the aforementioned platforms in PagoNxt and the full recognition of the temporary levy on revenue earned in Spain in Q1 2024, compared to its quarterly accrual in 2025, now in the ‘Tax on profit' line.
Tax on profit amounted to EUR 2,814 million, 3% lower than in H1 2024 (+1% in constant euros) and includes a EUR 174 million charge in H1 2025 corresponding to the quarterly accrual of the tax on revenue expected in Spain for the year.
Profit attributable to the parent in H1 2025 was EUR 6,833 million, 13% more than in H1 2024 (+18% in constant euros).
| Profit attributable to the parent | |||||
| EUR million | |||||
| constant euros | ||||
RoTE (post-AT1) in H1 2025 stood at 16.0% (15.1% in H1 2024), on track to achieve our 2025 target of proximally 16.5%. RoRWA was 2.36% (2.07% in H1 2024) and earnings per share stood at EUR 0.43 (EUR 0.37 in H1 2024).
Underlying results performance compared to the previous quarter
Regarding results that fall outside the ordinary course of our business and are therefore excluded from underlying income statement, in Q2 2025 the ‘net capital gains and provisions’ line includes the two aforementioned events of the same value but opposite signs.
In contrast, in Q1 2025, no impacts outside our ordinary course of business occurred and, therefore, no amount was recorded under the line ‘net capital gains and provisions’.
As a result, underlying profit attributable to the parent and profit attributable to the parent were the same both in Q2 2025, at EUR 3,431 million, and in Q1 2025, at EUR 3,402 million.
Compared to Q1 2025, profit in Q2 2025 increased 1%. In constant euros it increased 4%, by line:
•Total income remained above EUR 15 billion, and increased 2%, with the following breakdown by line:
•Net interest income increased 2%, with solid performances across most businesses, particularly in CIB (+10%) due to double-digit growth in Global Banking (Structured Finance and Syndicated Loans), Consumer, where it rose 4%, mainly due to DCB Europe, though NII in Latin America also performed well, and Payments (+9%) mainly due to higher activity in Cards. Of note was the resilient NII in Retail (+1%), even in a less favourable interest rate environment.
•Net fee income increased 1% quarter-on-quarter as the positive performances across most businesses, particularly in Payments (driven by higher activity), offset weaker results in CIB following an exceptionally strong Q1 2025.
•Gains on financial transactions fell 40%, mainly affected by a weaker quarter in CIB after strong performance in Global Markets in Q1 2025 favoured by higher volatility.
•Operating expenses in Q2 2025 rose 1% quarter-on-quarter, mainly due to the increases in Retail and CIB.
•Net loan-loss provisions decreased 1% driven by good performance in Consumer across its main markets, which more than offset the increase in CIB, impacted by single names.
•Other gains (losses) and provisions recorded a EUR 964 million loss in Q2 2025, compared to a EUR 700 million loss in Q1 2025. This comparison was partly impacted by higher provisions related to the CHF mortgage portfolio in Poland in Q2 2025.
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| Balance sheet | |||||||||||||||||||||||||||||||||||
Grupo Santander's balance sheet
As a result of the announcement of the Poland disposal and in accordance with IFRS 5 requirements, in the Group’s consolidated balance sheet the assets associated with the Poland disposal are classified under the 'non-current assets held for sale' line item and the related liabilities under 'liabilities associated with non-current assets held for sale'. This classification applies solely to the balance sheet as at 30 June 2025 and does not affect prior periods, which therefore limits the comparability of the balance sheets presented below.
| Grupo Santander. Condensed balance sheet | |||||||||||||||||
| EUR million | |||||||||||||||||
| Change | |||||||||||||||||
| Assets | Jun-25 | Jun-24 | Absolute | % | Dec-24 | ||||||||||||
| Cash, cash balances at central banks and other demand deposits | 175,555 | 156,234 | 19,321 | 12.4 | 192,208 | ||||||||||||
| Financial assets held for trading | 234,834 | 206,874 | 27,960 | 13.5 | 230,253 | ||||||||||||
| Debt securities | 85,290 | 71,523 | 13,767 | 19.2 | 82,646 | ||||||||||||
| Equity instruments | 16,278 | 16,764 | (486) | (2.9) | 16,636 | ||||||||||||
| Loans and advances to customers | 35,715 | 19,899 | 15,816 | 79.5 | 26,591 | ||||||||||||
| Loans and advances to central banks and credit institutions | 39,263 | 39,760 | (497) | (1.3) | 40,280 | ||||||||||||
| Derivatives | 58,288 | 58,928 | (640) | (1.1) | 64,100 | ||||||||||||
Financial assets designated at fair value through profit or loss1 | 14,515 | 15,335 | (820) | (5.3) | 14,045 | ||||||||||||
| Loans and advances to customers | 5,597 | 6,601 | (1,004) | (15.2) | 5,652 | ||||||||||||
| Loans and advances to central banks and credit institutions | 1,110 | 444 | 666 | 150.0 | 408 | ||||||||||||
| Other (debt securities an equity instruments) | 7,808 | 8,290 | (482) | (5.8) | 7,985 | ||||||||||||
| Financial assets at fair value through other comprehensive income | 75,801 | 82,270 | (6,469) | (7.9) | 89,898 | ||||||||||||
| Debt securities | 60,929 | 71,160 | (10,231) | (14.4) | 76,558 | ||||||||||||
| Equity instruments | 2,300 | 1,842 | 458 | 24.9 | 2,193 | ||||||||||||
| Loans and advances to customers | 12,268 | 8,933 | 3,335 | 37.3 | 10,784 | ||||||||||||
| Loans and advances to central banks and credit institutions | 304 | 335 | (31) | (9.3) | 363 | ||||||||||||
| Financial assets measured at amortized cost | 1,148,957 | 1,217,341 | (68,384) | (5.6) | 1,203,707 | ||||||||||||
| Debt securities | 119,661 | 114,347 | 5,314 | 4.6 | 120,949 | ||||||||||||
| Loans and advances to customers | 957,147 | 1,030,163 | (73,016) | (7.1) | 1,011,042 | ||||||||||||
| Loans and advances to central banks and credit institutions | 72,149 | 72,831 | (682) | (0.9) | 71,716 | ||||||||||||
| Investments in subsidiaries, joint ventures and associates | 7,191 | 8,235 | (1,044) | (12.7) | 7,277 | ||||||||||||
| Tangible assets | 28,997 | 33,709 | (4,712) | (14.0) | 32,087 | ||||||||||||
| Intangible assets | 17,249 | 19,359 | (2,110) | (10.9) | 19,259 | ||||||||||||
| Goodwill | 11,960 | 13,668 | (1,708) | (12.5) | 13,438 | ||||||||||||
| Other intangible assets | 5,289 | 5,691 | (402) | (7.1) | 5,821 | ||||||||||||
| Non-current asset held for sale | 68,710 | 2,915 | 65,795 | — | 4,002 | ||||||||||||
Other assets2 | 44,079 | 43,989 | 90 | 0.2 | 44,345 | ||||||||||||
| Total assets | 1,815,888 | 1,786,261 | 29,627 | 1.7 | 1,837,081 | ||||||||||||
| Liabilities and shareholders' equity | |||||||||||||||||
| Financial liabilities held for trading | 155,682 | 133,856 | 21,826 | 16.3 | 152,151 | ||||||||||||
| Customer deposits | 39,997 | 23,729 | 16,268 | 68.6 | 18,984 | ||||||||||||
| Debt securities issued | — | — | — | — | — | ||||||||||||
| Deposits by central banks and credit institutions | 30,816 | 28,213 | 2,603 | 9.2 | 39,584 | ||||||||||||
| Derivatives | 50,396 | 52,261 | (1,865) | (3.6) | 57,753 | ||||||||||||
| Other | 34,473 | 29,653 | 4,820 | 16.3 | 35,830 | ||||||||||||
| Financial liabilities designated at fair value through profit or loss | 35,513 | 34,493 | 1,020 | 3.0 | 36,360 | ||||||||||||
| Customer deposits | 22,499 | 24,809 | (2,310) | (9.3) | 25,407 | ||||||||||||
| Debt securities issued | 9,671 | 6,726 | 2,945 | 43.8 | 7,554 | ||||||||||||
| Deposits by central banks and credit institutions | 3,343 | 2,942 | 401 | 13.6 | 3,399 | ||||||||||||
| Other | — | 16 | (16) | (100.0) | — | ||||||||||||
| Financial liabilities measured at amortized cost | 1,400,632 | 1,454,896 | (54,264) | (3.7) | 1,484,322 | ||||||||||||
| Customer deposits | 945,733 | 989,108 | (43,375) | (4.4) | 1,011,545 | ||||||||||||
| Debt securities issued | 302,292 | 305,136 | (2,844) | (0.9) | 317,967 | ||||||||||||
| Deposits by central banks and credit institutions | 108,310 | 117,752 | (9,442) | (8.0) | 114,894 | ||||||||||||
| Other | 44,297 | 42,900 | 1,397 | 3.3 | 39,916 | ||||||||||||
| Liabilities under insurance contracts | 18,343 | 17,592 | 751 | 4.3 | 17,829 | ||||||||||||
| Provisions | 8,098 | 8,401 | (303) | (3.6) | 8,407 | ||||||||||||
| Liabilities associated with non-current assets held for sale | 59,361 | — | 59,361 | — | — | ||||||||||||
Other liabilities3 | 29,274 | 33,375 | (4,101) | (12.3) | 30,685 | ||||||||||||
| Total liabilities | 1,706,903 | 1,682,613 | 24,290 | 1.4 | 1,729,754 | ||||||||||||
| Shareholders' equity | 138,066 | 132,836 | 5,230 | 3.9 | 135,196 | ||||||||||||
| Capital stock | 7,443 | 7,747 | (304) | (3.9) | 7,576 | ||||||||||||
Reserves (including treasury stock)4 | 123,790 | 119,030 | 4,760 | 4.0 | 116,578 | ||||||||||||
| Profit attributable to the Group | 6,833 | 6,059 | 774 | 12.8 | 12,574 | ||||||||||||
| Less: dividends | — | — | — | — | (1,532) | ||||||||||||
| Other comprehensive income | (37,565) | (36,963) | (602) | 1.6 | (36,595) | ||||||||||||
| Minority interests | 8,484 | 7,775 | 709 | 9.1 | 8,726 | ||||||||||||
| Total equity | 108,985 | 103,648 | 5,337 | 5.1 | 107,327 | ||||||||||||
| Total liabilities and equity | 1,815,888 | 1,786,261 | 29,627 | 1.7 | 1,837,081 | ||||||||||||
| Note: The condensed balance sheet groups some lines of the consolidated balance sheet on pages 88 and 89 as follows: | ||
1.'Non-trading financial assets mandatorily at fair value through profit or loss' and 'Financial assets designated at fair value through profit or loss'. | ||
2.‘Hedging derivatives’; ‘Changes in the fair value of hedged items in portfolio hedges of interest risk’; 'Assets under reinsurance contracts'; ‘Tax assets’; and ‘Other assets’. | ||
3.‘Hedging derivatives’; ‘Changes in the fair value of hedged items in portfolio hedges of interest rate risk’; ‘Tax liabilities’; and ‘Other liabilities‘. | ||
4.‘Share premium’; ‘Equity instruments issued other than capital’; ‘Other equity’; ‘Accumulated retained earnings’; ‘Revaluation reserves’; ‘Other reserves’; and ‘Own shares (-)’. | ||
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| Balance sheet | |||||||||||||||||||||||||||||||||||
Gross loans and advances to customers (excl. reverse repos) | Customer funds (deposits excl. repos + mutual funds) | |||||||||||||||||||||||||
| Loans rose 1% both year-on-year and quarter-on-quarter. | Customer funds continued to increase, +1% quarter-on-quarter and +6% year-on-year. | |||||||||||||||||||||||||
| EUR 1,002 billion | +1% QoQ | EUR 1,207 billion | +1% QoQ | |||||||||||||||||||||||
| +1% YoY | +6% YoY | |||||||||||||||||||||||||
By business: | By product: | |||||||||||||||||||||||||
| Year-on-year growth in Consumer, Wealth and Payments businesses which offset lower balances in Retail and CIB. | Strong year-on-year increase in mutual funds, with widespread growth across businesses and countries, and higher deposits (both demand and time deposits). | |||||||||||||||||||||||||
| Retail | Consumer | CIB | Demand | Time | Mutual funds | |||||||||||||||||||||
| -1% | +2% | -2% | +4% | +3% | +17% | |||||||||||||||||||||
| Note: changes in constant euros. Includes Poland. | ||||||||||||||||||||||||||
Loans and advances to customers
Loans and advances to customers stood at EUR 1,010,727 million as at end June 2025, a 5% decrease both year-on-year and quarter-on-quarter. Both comparisons are affected by the Poland disposal as, in accordance with IFRS 5 requirements and only as at 30 June 2025, the assets related to the Poland disposal are aggregated under the 'non-current assets held for sale' line.
For the purpose of analysing traditional banking loans, the Group uses gross loans and advances to customers excluding reverse repos. We continue to analyse gross loans and advances to customers excluding reverse repos including Poland, i.e. maintaining the same perimeter that existed at the time of the announcement of the Poland disposal, thereby including Poland's balances. As at end June 2025, gross loans and advances to customers excluding reverse repos, including Poland, totalled EUR 1,002,133 million.
Additionally, the comments below do not include the exchange rate impact (i.e. in constant euros) except for Argentina and any grouping which includes it. For further information, see the 'Alternative performance measures' section in this report.
Compared to March 2025, gross loans and advances to customers (excluding reverse repos and including Poland), increased 1% in constant euros with the following detail:
•In Retail, they increased 1% boosted by individuals, both in mortgages (especially in Portugal and Brazil) and personal loans (mainly driven by strong growth in Spain).
•In Consumer, they increased 2% mainly in DCB Europe which more than offset the decrease in the US.
| Gross loans and advances to customers (excl. reverse repos) | |||||
| EUR billion. Including Poland | |||||
| -2 | % | 1 | |||
| Jun-25 / Jun-24 | |||||
1. In constant euros: +1%.
•In CIB, loans fell 1%,mainly due to Brazil.
•Loans in Wealth and Payments increased 5% and 2% respectively.
Compared to June 2024, gross loans and advances to customers (excluding reverse repos and including Poland) grew 1% in constant euros, as follows:
•In Retail, they decreased 1%, affected by decreases in SMEs (lower volumes in Spain and the UK) and corporates (in line with our focus on profitability in Spain, the run-off of non-core portfolios in the US and macro impacts in Brazil).
•In Consumer, they rose 2% boosted by the good performance in auto in DCB Europe and double-digit loan growth across our Latin American countries.
•In CIB, they fell 2% as the increase in Global Markets could not compensate the decrease in Global Transaction Banking (mainly in South America).
•They increased 13% in Wealth, particularly in Spain and the US, and were up 18% in Payments, driven by strong volumes growth in Cards, especially in Brazil.
As of June 2025, gross loans and advances to customers excluding reverse repos and including Poland maintained a diversified mix across our footprint, with presence in different countries in Europe (70% of Group's total loans), Latin America (19%) and in the US (11%).
| Gross loans and advances to customers (excl. reverse repos) | ||
| % operating areas. June 2025. Including Poland | ||
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| Balance sheet | |||||||||||||||||||||||||||||||||||
Customer funds
Customer deposits amounted to EUR 1,008,229 million as at end June 2025, down 7% quarter-on-quarter and 3% year-on-year. Both comparisons are affected by the Poland disposal as, in accordance with IFRS 5 requirements and only as at 30 June 2025, the liabilities related to the Poland disposal are aggregated under the 'liabilities associated with non-current assets held for sale' line.
The Group uses customer funds (customer deposits excluding repos, plus mutual funds) for the purpose of analysing traditional retail banking funds. We continue to analyse customer funds including Poland, i.e. maintaining the same perimeter that existed at the time of the announcement of the Poland disposal, thereby including Santander Poland's balances. As at end June 2025, they amounted to EUR 1,207,272 million.
The comments below do not include the exchange rate impact (i.e. in constant euros), except for Argentina and any grouping which includes it. For further information, see the 'Alternative performance measures' section in this report.
Compared to March 2025, customer funds including Poland increased 1% in constant euros, with the following detail:
•By product, customer deposits excluding repos rose 1%, with demand deposits rising (+1%) and time deposits decreasing (-1%). Positive momentum continued in mutual funds (+2%).
•By business, customer funds grew in Retail (+2%), Consumer (+1%) and Wealth (+1%), which more than offset the decreases in CIB (-4%) and Payments (-8%).
Compared to June 2024, customer funds were 6% higher in constant euros:
•By product, deposits excluding repos rose 4%, with growth in both demand (+4%) and time deposits (+3%). Widespread growth in mutual funds, increasing 17%.
•By business, they rose 5% in Retail, driven by double-digit growth in time deposits and mutual funds. They grew strongly in Consumer (+11%) and in line with our deposit gathering strategy. They rose 3% in CIB. In Wealth, they were up 10% driven by mutual funds (+14%). By country, there were generalized increases except in the UK.
As at end June 2025, customer funds (including Poland) maintained a diversified mix across our footprint, with presence in different countries in Europe (70% of Group's total customer funds), Latin America (22%) and the US (8%). The weight of demand deposits as a percentage of total customer funds was 56%, while time deposits accounted for 24% of the total and mutual funds for 20%.
| Customer funds | |||||
| EUR billion. Including Poland | |||||
| +3% ¹ | ||||||||
| +12% | ||||||||
| +1% | ||||||||
•Total | ||||||||
•Mutual funds | ||||||||
•Deposits excl. repos | ||||||||
| Jun-25 / Jun-24 | ||||||||
In addition to capturing customer deposits, the Group, for strategic reasons, maintains a selective policy of issuing securities in the international fixed income markets and strives to adapt the frequency and volume of its market operations to the structural liquidity needs of each unit, as well as to the receptiveness of each market.
In H1 2025, the Group's issuances were as follows:
•Medium- and long-term senior debt totalling EUR 11,600 million and covered bonds placed in the market for EUR 4,631 million.
•TLAC eligible instruments issued amounted to EUR 7,407 million, of which EUR 7,058 million was senior non-preferred and EUR 349 million was subordinated debt.
•Maturities of medium- and long-term debt totalled EUR 20,14 million.
The net loan-to-deposit ratio was 99% (103% in June 2024), and the ratio of deposits plus medium- and long-term funding to the Group’s loans was 127%, showing a comfortable funding structure. The Group liquidity coverage ratio (LCR) was an estimated 159% in June 2025 (see the 'Risk management' chapter of this report).
The Group's access to wholesale funding markets, as well as the cost of issuances depends, in part, on the ratings granted by the rating agencies.
| Rating agencies | |||||||||||
| Long term | Short term | Outlook | |||||||||
| Fitch Ratings | A (Senior A+) | F1 (Senior F1) | Stable | ||||||||
| Moody's | A2 | P-1 | Positive | ||||||||
| S&P Global Ratings | A+ | A-1 | Stable | ||||||||
| DBRS | A (High) | R-1 (Middle) | Stable | ||||||||
Moody's confirmed its A2 long-term and P-1 short-term ratings in Q4 2024 and maintained the positive outlook they had previously improved in Q2 2024, following the same movement in the rating of the Kingdom of Spain, and maintaining it two notches above the sovereign.
In Q3 2024, S&P Global confirmed Santander's credit rating at A+ for long-term and A1 for short-term debt. In Q2 2024, S&P rated our AT1 instruments as BBB- (investment grade). They maintained Santander's outlook as stable, in line with the sovereign.
Fitch upgraded Santander's long-term senior rating to A+ in Q1 2025. Fitch and DBRS maintained their stable outlooks, above the sovereign.
Sometimes the methodology applied by the rating agencies limits a bank's rating to the sovereign rating of the country where it is headquartered. Banco Santander, S.A. is still rated above the sovereign debt rating of the Kingdom of Spain by Moody’s, DBRS and S&P and rated at the same level by Fitch, which demonstrates our financial strength and the benefits from our diversification.
| Customer funds | ||
| % operating areas. June 2025. Including Poland | ||
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| Solvency ratios | |||||||||||||||||||||||||||||||||||
Solvency ratios
| Phased-in capital ratio | CET1 ratio | |||||||||||||||||||||||||
| The phased-in CET1 ratio reached 13.0% at the end of June, at the top end of the Group's operating range of 12-13%. | We continued to generate capital organically in the quarter, strongly backed by good profit growth. | |||||||||||||||||||||||||
 c | Attributable profit | +54 bps | ||||||||||||||||||||||||
Capital distribution1 | -29 bps | |||||||||||||||||||||||||
| TNAV per share | ||||||||||||||||||||||||||
TNAV per share was EUR 5.50, increasing 16% year-on-year including the cash dividends paid in Nov-24 and May-25. | ||||||||||||||||||||||||||
| Note: Phased-in ratios are calculated in accordance with the transitory treatment of the CRR. | ||||||||||||||||||||||||||
As at end June 2025, the total phased-in capital ratio (applying the CRR transitional arrangements) stood at 17.2% and the phased-in CET1 ratio at 13.0%, in line with the 13% target for 2025 that we announced in Q4 2024.
We comfortably meet the levels required by the ECB on a consolidated basis, estimated at 13.9% for the total capital ratio and at 9.6% for the CET1 ratio. This resulted in a distance to the maximum distributable amount (MDA) of 304 bps and a CET1 management buffer of 334 bps.
In the quarter, the CET1 ratio increased 0.1 pp. We had 54 bps of capital through attributable profit generation and had a small uplift from net organic RWAs as risk transfer initiatives more than offset an increase in RWAs. There was a -29 bp impact related to capital distributions, including the deduction for the accrual of shareholder remuneration against profit earned in Q2 2025, in line with our 50% payout target1, and AT1 costs. Additionally, there were -6bps from regulatory headwinds (mostly relating to capital model changes) and -8bps in markets and others (mostly minority interests).
Although the CRR3 fully-loaded criteria are not yet fully defined, our current estimate for the fully-loaded CET1 ratio is comfortably above our >12% Investor Day target for 2025 year end.
TNAV per share ended the quarter at EUR 5.50. Including the interim cash dividend paid in November 2024 (EUR 10.00 cents per share) and final cash dividend paid in May (EUR 11.00 cents per share), both charged against 2024 results, TNAV plus cash dividend per share increased 15.6% in the last twelve months (+2.7% in the quarter).
Lastly, the leverage ratio was 4.91%.
| Eligible capital. June 2025 | |||||
| EUR million | |||||
| Phased-in | |||||
| CET1 | 81,250 | ||||
| Basic capital | 90,828 | ||||
| Eligible capital | 107,733 | ||||
| Risk-weighted assets | 625,750 | ||||
| % | |||||
| CET1 capital ratio | 13.0 | ||||
| Tier 1 capital ratio | 14.5 | ||||
| Total capital ratio | 17.2 | ||||
| CET1 ratio performance | ||
| % | ||
Note: Phased-in ratios are calculated in accordance with the transitory treatment of the CRR. Does not include any expected impacts from the recently announced inorganic transactions.
1.Our current ordinary shareholder remuneration policy is to distribute approximately 50% of Group reported profit (excluding non-cash, non-capital ratios impact items), distributed approximately 50% in cash dividend and 50% in share buybacks. Execution of the shareholder remuneration policy is subject to future corporate and regulatory decisions and approvals.
2.Business RWA change net of risk transfer initiatives.
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| Risk management | |||||||||||||||||||||||||||||||||||
Risk management
| Credit risk | Market risk | |||||||||||||||||||||||||
| Credit quality indicators remained contained, within expected levels. | Average VaR decreased in a slightly less volatile environment, given the expectations of trade negotiations with the US. | |||||||||||||||||||||||||
| Cost of risk | NPL ratio | NPL coverage ratio | Average VaR | |||||||||||||||||||||||
| 1.14% | 2.91% | 67% | Q2'25 | EUR 18 million | -EUR 2.8 mn vs. Q1'25 | |||||||||||||||||||||
| 0 bp vs. Mar-25 | -9 bps vs. Mar-25 | +2 pp vs. Mar-25 | ||||||||||||||||||||||||
| Structural and liquidity risk | Operational risk | |||||||||||||||||||||||||
| Robust and diversified liquidity buffer, with ratios well above regulatory requirements. | In Q2 2025, our operational risk profile remained stable, focusing on risks associated with suppliers, technology and cyber risk. Operational losses increased compared to the previous quarter. | |||||||||||||||||||||||||
| Liquidity Coverage Ratio (LCR) | ||||||||||||||||||||||||||
159%1 | +3 pp vs. Mar-25 | |||||||||||||||||||||||||
In accordance with IFRS 5 requirements, business subject to the Poland disposal has been classified as 'non-current assets/liabilities held for sale' and the results have been reported under 'discontinued operations'.
However, given that until the Poland disposal is completed, the management of Santander Polska remains unchanged, all management metrics included in this report have been calculated including Poland, i.e. maintaining the same perimeter that existed at the time of the announcement of the Poland disposal. This reporting approach is consistent with the information used internally in management reporting, as well as with other public Group disclosures.
Credit risk2
During H1 2025, the environment was characterized by geopolitical tensions, such as the conflict in the Middle East and the development of tariff policies in the US.
The moratorium on new tariffs and the resumption of negotiations mitigated instability in trade, but weaker economic data in the US raised some doubts regarding the economic outlook and credit trends. In Latin America, economies remain resilient. In Europe, economic recovery is progressing at a moderate pace, with greater uncertainty stemming from international trade tensions, which policymakers aim to offset through increased spending in defense and the simplification of the regulatory agenda, to promote private sector investment. The ECB has adopted a neutral-expansionary tone in monetary policy, which is already being reflected in mortgage and consumer portfolios.
Our global and diversified business model, with our strong local presence, provides us with a resilient structure which, together with our prudent risk management, enables us to maintain a medium-low risk profile, even in a more complex environment.
In terms of credit quality, in Q2 2025:
•The NPL ratio improved 9 bps quarter-on-quarter to 2.91%. Credit impaired loans decreased 5% to EUR 33,395 million, driven by favourable exchange rate movements and positive trends across all global businesses. Gross credit risk with customers (total risk) decreased 2%, reaching EUR 1,148 billion, due lower volumes in Retail UK and DCB US.
Year-on-year, the NPL ratio improved 11 bps, backed by lower credit impaired loan volumes, mainly in Retail and CIB, which more than offset a decrease in total risk due to the impact of securitizations.
•Net loan-loss provisions totalled EUR 6,178 million in H1 2025, growing 6% year-on-year in constant euros, mainly due to the increase in Payments (especially in Brazil) and the Corporate Centre, reflecting our strategy to accelerate NPL ratio reductions, improving the Group's credit quality.
Quarter-on-quarter, provisions decreased 1% in constant euros, supported by a good performance in Consumer, mainly in Brazil, DCB Europe and DCB US.
| Key risk metrics | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net loan-loss provisions 3 | Cost of risk (%) 4 | NPL ratio (%) | NPL coverage ratio (%) | |||||||||||||||||||||||||||||||||||||||||||||||
| Q2'25 | H1'25 | Chg (%) / Q2'24 | Chg (%) / Q1'25 | Jun-25 | Chg (bps) / Jun-24 | Chg (bps) / Mar-25 | Jun-25 | Chg (bps) / Jun-24 | Chg (bps) / Mar-25 | Jun-25 | Chg (pp) / Jun-24 | Chg (pp) / Mar-25 | ||||||||||||||||||||||||||||||||||||||
| Retail | 1,399 | 2,830 | (0.1) | 0.9 | 0.89 | (13) | (2) | 3.06 | (8) | (6) | 59.8 | (1.7) | 0.8 | |||||||||||||||||||||||||||||||||||||
| Consumer | 956 | 2,075 | (2.6) | (10.4) | 2.09 | (8) | (5) | 4.97 | 16 | (12) | 76.4 | 0.6 | 1.4 | |||||||||||||||||||||||||||||||||||||
| CIB | 72 | 85 | (5.2) | 468.4 | 0.09 | (6) | 1 | 0.71 | (32) | (3) | 45.1 | 9.1 | 5.8 | |||||||||||||||||||||||||||||||||||||
| Wealth | 13 | 21 | 23.3 | 74.1 | 0.20 | 13 | 0 | 0.96 | (12) | (1) | 70.3 | 11.2 | 3.9 | |||||||||||||||||||||||||||||||||||||
| Payments | 479 | 970 | 29.0 | 0.9 | 7.54 | 51 | 2 | 5.11 | (5) | (77) | 131.2 | (13.1) | 5.2 | |||||||||||||||||||||||||||||||||||||
| TOTAL GROUP | 3,017 | 6,178 | 6.1 | (1.0) | 1.14 | (7) | 0 | 2.91 | (11) | (9) | 67.2 | 0.7 | 1.5 | |||||||||||||||||||||||||||||||||||||
1.Group LCR. See the 'Structural and liquidity risk' section of this chapter. Provisional data.
2.Changes in constant euros, unless otherwise indicated.
3.EUR million and % change in constant euros.
4.Provisions to cover losses due to impairment of loans in the last 12 months / average customer loans and advances of the last 12 months.
For more detailed information, please see the 'Alternative performance measures' section.
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| Risk management | |||||||||||||||||||||||||||||||||||
•Cost of risk stood at 1.14%, improving compared to June 2024 and in line with March 2025.
•The NPL coverage ratio increased quarter-on-quarter reaching 67%, with loan-loss allowances of EUR 22,441 million. The coverage ratio remained at comfortable levels considering that 68% of the Group’s portfolio is backed by quality collateral.
Regarding the IFRS 9 stages, the distribution of the portfolio was stable in the quarter in percentage terms, although in absolute terms, stage 3 balances declined in line with the active risk management carried out in Retail Spain, which is improving credit quality.
| NPL coverage ratio by stage | |||||||||||||||||||||||
| EUR billion | |||||||||||||||||||||||
Exposure1 | NPL coverage2 | ||||||||||||||||||||||
| Jun-25 | Mar-25 | Jun-24 | Jun-25 | Mar-25 | Jun-24 | ||||||||||||||||||
| Stage 1 | 989 | 1,012 | 1,008 | 0.3 | % | 0.4 | % | 0.4 | % | ||||||||||||||
| Stage 2 | 85 | 87 | 94 | 5.7 | % | 5.6 | % | 5.6 | % | ||||||||||||||
| Stage 3 | 33 | 35 | 35 | 42.7 | % | 41.3 | % | 41.2 | % | ||||||||||||||
Stage 1: financial instruments for which no significant increase in credit risk has been identified since its initial recognition.
Stage 2: if there has been a significant increase in credit risk since the date of initial recognition but the impairment event has not materialized, the financial instrument is classified in Stage 2.
Stage 3: a financial instrument is catalogued in this stage when it shows effective signs of impairment as a result of one or more events that have already occurred resulting in a loss.
2. Total loan-loss reserves in each stage / exposure subject to impairment in each stage.
| Credit impaired loans and loan-loss allowances | |||||||||||
| EUR million | |||||||||||
| Change (%) | |||||||||||
| Q2'25 | QoQ | YoY | |||||||||
| Balance at beginning of period | 34,992 | (0.8) | (1.8) | ||||||||
| Net additions | 2,973 | (4.7) | (9.8) | ||||||||
| Increase in scope of consolidation | — | — | (100.0) | ||||||||
| Exchange rate differences and other | (1,014) | 967.4 | 66.0 | ||||||||
| Write-offs | (3,556) | 7.9 | 9.6 | ||||||||
| Balance at period-end | 33,395 | (4.6) | (4.8) | ||||||||
| Loan-loss allowances | 22,441 | (2.3) | (3.8) | ||||||||
| For impaired assets | 14,258 | (1.3) | (1.4) | ||||||||
| For other assets | 8,183 | (4.1) | (7.7) | ||||||||
Our Retail, Consumer, CIB and Payments businesses account for around 97% of the Group's total credit portfolio. Our Wealth business focuses mainly on asset management, investment funds and insurance and has little credit risk exposure. Therefore, the following explanations are focused on the most relevant businesses from a credit risk management point of view:
 | Retail & Commercial Banking | Credit risk exposure | |||||||||
| 55% of total Group | |||||||||||
Retail's portfolio mainly comprises high quality mortgage loans, where 90% of loans have an LTV lower than 80%, and a corporate portfolio in which more than 50% has property collateral or other collateral.
The NPL ratio fell 6 bps in the quarter to 3.06%, driven by lower credit impaired loans, mainly in Europe, with a notable improvement in Spain, supported by write-offs and portfolio sales within the NPL reduction plan. Total risk decreased 2%, mainly due to a decline in the UK.
The cost of risk improved 13 bps compared to June 2024 to 0.89%, mainly supported by lower provisions in European portfolios, particularly: i) in Spain, due to a good performance in mortgages, favoured by lower interest rates, reduced inflationary pressures and a robust labour market and, ii) in Poland, as our CHF mortgage portfolio required lower provisions than in the same period last year. In Mexico, both the mortgage and corporate loan portfolios performed positively year-on-year, due to model updates and single names last year. Compared to the previous quarter, cost of risk improved 2 bps due to lower provisions mainly in Poland and Spain.
The NPL coverage ratio increased slightly in the quarter, reaching 60%. Given the Retail portfolio includes the mortgage portfolios in Spain and the UK, which have high-quality collateral, we consider that coverage is at appropriate levels for the risk of the portfolio.
| Digital Consumer Bank | Credit risk exposure | |||||||||
| 18% of total Group | |||||||||||
The Consumer portfolio mainly comprises auto loans and leasing business, which together account for more than 80% of the portfolio.
The NPL ratio stood at 4.97%, improving 12 bps in the quarter, driven by a decrease in credit impaired loans, mainly supported by portfolio sales in the US and, to a lesser extent, by Brazil. Total risk decreased 2%, with a decline in the US, partially offset by growth in DCB Europe, Argentina and Mexico.
The cost of risk improved 8 bps compared to June 2024, standing at 2.09%, on the back of a good performance in terms of provisions in DCB US and, to a lesser extent, Brazil. Compared to the previous quarter, cost of risk improved 5 bps, supported by lower LLPs, driven by model updates in Brazil and portfolio sales.
The NPL coverage ratio improved 1 pp quarter-on-quarter, reaching 76%, a level we are comfortable with considering more than 80% of the portfolio is auto loans.
| Corporate & Investment Banking | Credit risk exposure | |||||||||
| 21% of total Group | |||||||||||
CIB's business consists of wholesale customers, around 85% of whom have a rating above investment grade. It is a business with a strong advisory component and high value-added solutions and is less intensive in terms of balance sheet activity.
The NPL ratio fell 3 bps in the quarter to 0.71%, with a decrease in credit impaired loans, supported by positive trends in Spain and Poland, which more than offset an increase in Brazil (impacted by a single name). Total risk posted a 2% decline quarter-on-quarter, mainly driven by the US and Brazil.
The cost of risk improved 6 bps compared to June 2024, to 0.09%, backed by almost inexistent provisions in Q4 2024 and Q1 2025. Cost of risk was relatively stable quarter-on-quarter (+1 bp).
The NPL coverage ratio improved 6 pp quarter-on-quarter to 45%.
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| Risk management | |||||||||||||||||||||||||||||||||||
| Payments | Credit risk exposure | |||||||||
| 2% of total Group | |||||||||||
The Payments portfolio encompasses both the exposure associated with payments and transfer processing activities (PagoNxt) as well as the Cards businesses, which are characterized by rapid turnover and returns in line with their level of risk.
The NPL ratio stood at 5.11%, 77 bps below March 2025, driven by a decline in credit impaired loans, especially in Brazil, due to write-offs. Total risk decreased slightly in the quarter, mainly due to Brazil, Chile and, to a lesser extent, Mexico.
The cost of risk rose 51 bps year-on-year, to 7.54%, due to higher provisions (mainly concentrated in Cards). The increase was primarily due to the macroeconomic environment and the impact from changes in provision models in Brazil and Mexico. In the quarter, CoR registered a 2 bp increase.
The NPL coverage ratio rose 5 pp in the quarter to 131%.
Market risk
Markets were mainly influenced by the potential negative impacts on global economic growth from trade policies in the US and geopolitical tensions, including the war in Ukraine, the conflict in Israel and the recent heightened tensions with Iran.
Trading activity in CIB is focused on meeting the needs of our clients. Its risk is measured in terms of daily VaR at 99% and originates from possible movements in interest rates.
In Q2 2025, the average VaR was EUR 18 million, decreasing compared to Q1 2025 and remaining moderately stable during the quarter, in a slightly less volatile environment due to the expectations of trade negotiations that could reduce the potential impact of tariffs on international trade.
By market risk factor, VaR continued to be primarily driven by interest rate risk. The VaR figures remain low compared to the size of the balance sheet and the Group's activity.
Trading portfolios1. VaR by region | ||||||||||||||
| EUR million | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Q2 | Average | Last | Average | |||||||||||
| Total | 18.2 | 15.6 | 16.4 | |||||||||||
| Europe | 15.7 | 12.5 | 12.2 | |||||||||||
| North America | 5.8 | 4.4 | 7,7 | |||||||||||
| South America | 8.5 | 7.8 | 7,9 | |||||||||||
1. Activity in Santander Corporate & Investment Banking markets.
Trading portfolios1. VaR by market factor | ||||||||||||||
| EUR million | ||||||||||||||
| Q2 2025 | Min. | Avg. | Max. | Last | ||||||||||
| VaR total | 15.0 | 18.2 | 29.2 | 15.6 | ||||||||||
| Diversification effect | (12.7) | (27.3) | (36.1) | (21.1) | ||||||||||
| Interest rate VaR | 14.7 | 18.1 | 23.0 | 15.8 | ||||||||||
| Equity VaR | 3.3 | 7.6 | 10.8 | 3.3 | ||||||||||
| FX VaR | 4.7 | 8.9 | 14.3 | 7.5 | ||||||||||
| Credit spreads VaR | 4.8 | 8.1 | 10.2 | 8.4 | ||||||||||
| Commodities VaR | 0.2 | 2.8 | 7.0 | 1.7 | ||||||||||
1.Activity in Santander Corporate & Investment Banking markets.
Note: in the North America, South America and Asia portfolios, VaR corresponding to the credit spreads factor other than sovereign risk is not relevant and is included in the interest rate factor.
Trading portfolios1. VaR performance | ||
| EUR million | ||
1. Activity in Santander Corporate & Investment Banking markets.
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| Risk management | |||||||||||||||||||||||||||||||||||
Structural and liquidity risk
Structural exchange rate risk
Grupo Santander's structural exchange rate risk mainly arises from foreign currency transactions related to permanent financial investments, their results and associated hedges.
During Q2 2025, the Group's main currencies depreciated against the euro. The US dollar depreciated 8%, given the potential negative impact of tariff policies on its economy.
Our dynamic management of this risk aims to limit the impact on the CET1 capital ratio from exchange rate movements. In the quarter, the coverage of the different currencies impacting this ratio remained close to 100%.
Regarding financial results, the exchange rate hedging strategy is tactical and dynamic, depending on our expectations of the evolution of the different currencies in the various countries where the Group operates.
Structural interest rate risk
Interest rate risk management aims to mitigate potential negative impacts on Santander, both in terms of net interest income and economic value of its equity, due to adverse fluctuations in interest rate curves in the various currencies in which the Group operates.
The Group measures interest rate risk through statistical models based on structural risk mitigation strategies using interest rate instruments, such as fixed-income bond portfolios and derivative instruments, to keep the risk profile within the risk appetite.
In Q2 2025, market interest rates continued to reflect volatility, driven by the expectations of potential progress in negotiations over the new tariff policies in the US and by the divergence in monetary policy adjustments among major central banks (with the US holding its policy rate, while Europe and some Latin American countries implemented cuts).
Despite this volatile environment, our structural debt portfolios continued to perform positively, and structural interest rate risk remained at comfortable levels during the period.
At an aggregate level, Santander maintains positive net interest income sensitivity to interest rate hikes and negative sensitivity in the same scenario for the economic value of its equity.
Liquidity risk
Liquidity risk is the risk of not having the necessary liquid financial resources available to meet our obligations as they come due. Losses can be caused by forced asset sales or margin impacts due to the mismatch between expected cash inflows and outflows.
Our strong liquidity position is based on a decentralized model, where each subsidiary is managed autonomously.
In Q2 2025, the Group maintained a comfortable position, with ratios well above regulatory limits, supported by a robust and diversified liquidity buffer.
The Group liquidity coverage ratio (LCR1) ended the quarter at 159%, 3 pp higher than the previous quarter.
Operational risk
Our operational risk profile was stable in Q2 2025 compared to the previous quarter, with a focus on risks associated with suppliers, technology and cyber risk, especially considering the potential impact of geopolitical risks on these areas. There was an increase in operational risk losses quarter-on-quarter. Legal processes continue to be the main cause of these losses, which are concentrated in the Group's Retail business.
The Group constantly monitors the evolution of operational risks in general and, particularly, those arising from transformation plans (including the use of new technologies), external fraud and the most significant legal processes.
1. The Consolidated LCR ratio as at end June 2025 was 147%, comfortably exceeding internal and regulatory requirements. For more information on the calculation of both the Group LCR and the Consolidated LCR, see the “Liquidity and funding management” section of the “Economic and financial review” chapter in the Annual report 2024 published on 28 February 2025.
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| Santander share | |||||||||||||||||||||||||||||||||||
The Santander share
Dividends and shareholder remuneration
In accordance with the 2024 shareholder remuneration policy, the bank paid a final cash dividend in May charged against 2024 results, amounting to EUR 11.00 cents per share.
Additionally, in application of the shareholder remuneration charged against 2024 results, the second share buyback programme was executed between February and June, for a total amount of EUR 1,587 million. A total of 267,166,950 shares were acquired, representing 1.76% of the share capital. In execution of the resolution adopted at the general shareholders’ meeting held on 4 April 2025, the executive committee carried out the amortization of the repurchased shares and the corresponding share capital reduction on 2 June 2025, as described in the 'Corporate governance' section.
As a result, the total shareholder remuneration charged against 2024 results, including the interim cash dividend of EUR 10.00 cents per share (paid in November 2024) and the first share buyback programme (amounting to EUR 1,525 million, completed in December 2024), amounted to EUR 6,287 million. This is approximately equivalent to 50% of the Group reported profit (excluding non-cash, non-capital ratios impact items) in 2024, distributed approximately 50% in cash dividends and 50% in share buybacks.
As announced on 5 February 2025, the shareholder remuneration policy that the board intends to apply for the 2025 results consists of a total shareholder remuneration of approximately 50% of the Group reported profit (excluding non-cash, non-capital ratios impact items), to be distributed in approximately equal parts between cash dividends and share buybacks.
Additionally, on the same date, the board announced its objective to allocate EUR 10 billion to shareholder remuneration in the form of share buybacks charged against 2025 and 2026 results, as well as anticipated capital excess. This target includes i) the buybacks that form part of the aforementioned shareholder remuneration policy, and ii) additional buybacks following the publication of the full year results, to distribute end-of-year CET1 excess capital.
On 5 May 2025, Santander announced its intention to distribute 50% of the capital released from the disposal of its 49% stake in Santander Bank Polska S.A., through a share buyback of approximately EUR 3.2 billion in early 2026, as part of additional buybacks to distribute excess capital and, as a result, it could exceed the EUR 10 billion target. Upon announcing the agreement to acquire TSB Banking Group plc on 1 July 2025, the bank confirmed its goal to distribute at least EUR 10 billion in share buybacks charged against 2025 and 2026 results and excess capital.
The implementation of the shareholder remuneration policy and the aforementioned share buybacks are subject to future corporate and regulatory decisions and approvals.
Share price performance
Santander's shares are listed on five markets: on four exchanges in Spain (Madrid, Barcelona, Bilbao and Valencia), in the US (as an ADR), in the UK (as a CDI), in Mexico (Sistema Internacional de Cotizaciones) and in Poland.
Q2 2025 was marked by increased risk appetite and a recovery in the stock market. This rebound was supported by temporary pauses in tariffs with the UK and China, ongoing negotiations with the EU, and a recent US court ruling against certain tariffs. In commodities, gold continued its upward trajectory and reached all-time highs, consolidating its position as one of the strongest safe-haven assets.
In this context, in global financial markets, equity markets performed well with widespread gains. As of 30 June 2025, Santander’s share price had increased by 57.4%, significantly outperforming the performance of both the sector and the broader European market.
In the banking sector, the Eurostoxx Banks, the eurozone's main index, increased 37.6% year to date, while the DJ Stoxx Banks rose 29.1% and the MSCI World Banks increased 21.9%. The other main indices also closed up in the quarter, but rose less (Ibex 35 +20.7% and DJ Stoxx 50 +3.4%).
| Share price | ||||||||||||||
 |  | |||||||||||||
START 31/12/2024 | END 30/06/2025 | |||||||||||||
| €4.465 | €7.027 | |||||||||||||
 |  | |||||||||||||
Maximum 23/05/2025 | Minimum 02/01/2025 | |||||||||||||
| €7.195 | €4.255 | |||||||||||||
| Comparative share performance | ||
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| Santander share | |||||||||||||||||||||||||||||||||||
Market capitalization and trading
As at 30 June 2025, Santander’s market capitalization of EUR 104,599 million was the largest in the eurozone and the 21st largest in the world among financial institutions.
The share’s weighting in the Stoxx Europe 600 Banks index was 7.7% and 12.5% in the Euro Stoxx Banks. In the domestic market, its weight in the Ibex 35 was 14.7% as at 30 June 2025.
A total of 4,468 million shares were traded in the quarter for an effective value of EUR 26,910 million and an annualized liquidity ratio of 59%.
The average daily trading volume was 35.8 million shares with an effective value of EUR 215 million.
Shareholder base
The total number of Santander shareholders as at 30 June 2025 was 3,508,261, of which 3,004,525 were European (70.77% of the capital stock) and 491,384 from the Americas (27.48% of the capital stock).
Excluding the board, which holds 1.32% of the bank’s capital stock, retail shareholders accounted for 36.06% and institutional shareholders accounted for 62.62%.
| Share capital distribution by geographic area | ||||||||
| 30 June 2025 | ||||||||
| The Americas | Europe | Other | ||||||
| 27.48% | 70.77% | 1.75% | ||||||
 | ||||||||
 | 1st | Bank in the eurozone by market capitalization | |||||||||
| EUR | 104,599 | million | |||||||||
| The Santander share | |||||
| 30 June 2025 | |||||
| Shares and trading data | |||||
| Shares (number) | 14,885,325,372 | ||||
| Average daily turnover (number of shares) | 35,750,808 | ||||
| Share liquidity (%) | 59 | ||||
| (Annualized number of shares traded during the period / number of shares) | |||||
| Stock market indicators | |||||
| Price / Tangible book value (X) | 1.28 | ||||
| Free float (%) | 99.99 | ||||
.
| Share capital distribution by type of shareholder | |||||
| 30 June 2025 | |||||
| Institutions | ||
| 62.62% | ||
| Board * | ||
| 1.32% | ||
| Retail | ||
| 36.06% | ||
* Shares owned or represented by directors.
26 | | January - June 2025 | ||||||
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FINANCIAL INFORMATION BY SEGMENT
Description of segments
We base segment reporting on financial information presented to the chief operating decision maker, which excludes certain statutory results items that distort year-on-year comparisons and are not considered for management reporting. This financial information (underlying basis) is computed by adjusting reported results for the effects of certain gains and losses (e.g. capital gains, write-downs, impairment of goodwill, etc.). These gains and losses are items that management and investors ordinarily identify and consider separately to better understand the underlying trends in the business.
The Group has aligned the information in this chapter with the underlying information used internally for management reporting and with that presented in the Group's other public documents.
Santander's executive committee has been selected to be its chief operating decision maker. The Group's operating segments reflect its organizational and managerial structures. The Group's executive committee reviews internal reporting based on these segments to assess performance and allocate resources.
The segments are split by global business and by country in which profits are earned. We prepare the financial information by aggregating the figures for Santander’s global businesses and countries, relating it to both the accounting data of the business units integrated in each segment and that provided by management information systems. The same general principles as those used in the Group are applied.
Main changes to the composition of Santander's segments in 2025
The main changes, which we announced in the Q1 2025 results publications and that we are applying to the management information for all periods included in these consolidated financial statements, are as follows:
•To better align reporting with the changes to the management structure in Wealth Management & Insurance, investment platforms (Investment Platforms Unit) and certain stakes in companies, mainly in the real estate sector, that were previously recorded in Retail & Commercial Banking or Corporate & Investment Banking have been incorporated into Wealth Management & Insurance. We have therefore incorporated a new vertical, Portfolio Investments, focusing on the management of said investment platforms and stakes that complement Wealth's traditional business, enhancing the product and service offering for our clients.
•Some profit sharing criteria between Retail & Commercial Banking and Cards have been improved, aligning criteria across the Group.
•Additionally, we completed the usual annual adjustment of the perimeter of the Global Customer Relationship Model between Retail & Commercial Banking and Corporate & Investment Banking and between Retail & Commercial Banking and Wealth Management & Insurance.
•In secondary segments, as part of our transformation strategy and after a year with our five global businesses in full operation, the board of directors approved the dissolution of the regional structures, having fulfilled their mission to support the transition to the global operating model. As a result, we no longer report regional information and the secondary segments are structured into the ten main units (nine countries and DCB Europe), the Corporate Centre and ‘Rest of the Group’, which includes everything that is not already included in the mentioned units.
None of the changes described above impact the Group's reported global figures in the consolidated financial statements.
Composition of Santander's segments
Primary segments
This primary level of segmentation, comprises six reportable segments: five global businesses plus the Corporate Centre. The global businesses are:
Retail & Commercial Banking (Retail): area that integrates the retail banking and commercial banking businesses (individuals, SMEs and corporates), except private banking clients and business originated in the consumer finance and the cards businesses. Detailed financial information is provided on Spain (Retail Spain), the UK (Retail UK), Mexico (Retail Mexico) and Brazil (Retail Brazil), which represent most of the total Retail business.
Digital Consumer Bank (Consumer): comprises all business originated in the consumer finance companies, plus Openbank, Open Digital Services (ODS) and SBNA Consumer. Detailed financial information is provided on Europe (DCB Europe) and the US (DCB US).
Corporate & Investment Banking (CIB): this business, which includes Global Transaction Banking, Global Banking (Global Debt Financing and Corporate Finance) and Global Markets, offers products and services on a global scale to corporate and institutional customers, and collaborates with other global businesses to better serve our broad customer base.
Wealth Management & Insurance (Wealth): includes the corporate unit of Private Banking and International Private Banking in Miami and Switzerland (Santander Private Banking), the asset management business (Santander Asset Management), the insurance business (Santander Insurance) and the unit that manages the investment platforms and stakes that complement Wealth's traditional business (the new vertical, Portfolio Investments).
Payments: comprises the Group's digital payments solutions, providing global technological solutions for our banks and new customers in the open market. It is structured in two businesses: PagoNxt (Getnet, Ebury and PagoNxt Payments) and Cards (cards platform and business in the countries where we operate).
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Secondary segments
Following the dissolution of the regional management structures at the beginning of 2025, this secondary level includes our main geographical units. Detailed financial information is provided on Spain, the UK, Portugal, Poland, DCB Europe, which includes Santander Consumer Finance (the entire consumer finance business in Europe), Openbank in Europe and ODS, the US, which includes the holding company (SHUSA) and the businesses of Santander Bank (SBNA), Santander Consumer USA (SC USA), the specialized business unit Banco Santander International, the New York branch and Santander US Capital Markets (SanCap), Mexico, Brazil, Chile and Argentina. Information is also provided on the Corporate Centre and ‘Rest of the Group’, which brings together everything that is not included in the aforementioned geographical units or the Corporate Centre.
The Corporate Centre includes the centralized activities relating to equity stakes in financial companies, financial management of the structural exchange rate position, assumed within the sphere of the Group’s assets and liabilities committee, as well as management of liquidity and of shareholders’ equity via issuances.
As the Group’s holding entity, this area manages all capital and reserves and allocations of capital and liquidity with the other businesses. It also incorporates goodwill impairment but not the costs related to the Group’s central services (charged to the areas), except for corporate and institutional expenses related to the Group’s functioning.
The businesses included in each of the segments in this report and the accounting principles under which their results are presented here may differ from the businesses included and accounting principles applied in the financial information separately prepared and disclosed by our subsidiaries (some of which are publicly listed) which in name or geographical description may seem to correspond to the business areas covered in this report. Accordingly, the results of operations and trends shown for our business areas in this document may differ materially from those of such subsidiaries. The results of our segments included in this section are presented only on an underlying basis in accordance with IFRS 8. Therefore, the following information, at both the Group and the primary and secondary segment levels (which are only presented on an underlying basis), includes Poland's results reported line by line as they were in previous quarterly disclosures, given that the management of Santander Polska remains unchanged until the Poland disposal is completed. This reporting approach is consistent with the information used internally in management reporting, as well as with other public Group disclosures. For the same reason, all management metrics included in this report have been calculated including Poland, i.e. maintaining the same perimeter that existed at the time of the announcement of the Poland disposal. For further information, see the 'Alternative performance measures' section in the appendix to this report. The results of our segments presented below are provided on the basis of underlying results only and include the impact of foreign exchange rate fluctuations. However, for a better understanding of the changes in the performance of our business areas, we also provide and discuss the year-on-year changes to our results excluding such exchange rate impacts (i.e. in constant euros), except for Argentina, and any grouping which includes it, where the variations in constant euros have been calculated considering the Argentine peso exchange rate on the last working day for each of the periods presented. For further information, see methodology in the 'Alternative performance measures' section in the appendix to this report. Certain figures contained in this report, have been subject to rounding to enhance their presentation. Accordingly, in certain instances, the sum of the numbers in a column or a row in tables contained in this report may not conform exactly to the total figure given for that column or row. | ||
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| January-June 2025 | ||||||||||||||||||||
| Main items of the underlying income statement | ||||||||||||||||||||
| EUR million | ||||||||||||||||||||
| Primary segments | Net interest income | Net fee income | Total income | Net operating income | Profit before tax | Underlying attributable profit to the parent | ||||||||||||||
| Retail & Commercial Banking | 13,339 | 2,397 | 15,710 | 9,522 | 5,468 | 3,687 | ||||||||||||||
| Digital Consumer Bank | 5,504 | 681 | 6,425 | 3,761 | 1,456 | 1,042 | ||||||||||||||
| Corporate & Investment Banking | 1,966 | 1,353 | 4,354 | 2,452 | 2,318 | 1,534 | ||||||||||||||
| Wealth Management & Insurance | 729 | 842 | 2,032 | 1,306 | 1,274 | 948 | ||||||||||||||
| Payments | 1,411 | 1,428 | 2,840 | 1,641 | 594 | 335 | ||||||||||||||
| PagoNxt | 80 | 510 | 641 | 65 | 22 | 16 | ||||||||||||||
| Cards | 1,330 | 918 | 2,199 | 1,575 | 572 | 319 | ||||||||||||||
| Corporate Centre | (232) | (16) | (351) | (535) | (807) | (713) | ||||||||||||||
| TOTAL GROUP | 22,716 | 6,684 | 31,010 | 18,145 | 10,303 | 6,833 | ||||||||||||||
| Secondary segments | ||||||||||||||||||||
| Spain | 3,585 | 1,503 | 6,167 | 4,067 | 3,232 | 2,258 | ||||||||||||||
| United Kingdom | 2,543 | 166 | 2,642 | 1,215 | 762 | 560 | ||||||||||||||
| Portugal | 684 | 255 | 992 | 723 | 730 | 525 | ||||||||||||||
| Poland | 1,480 | 373 | 1,842 | 1,330 | 965 | 457 | ||||||||||||||
| DCB Europe | 2,266 | 372 | 2,827 | 1,500 | 727 | 396 | ||||||||||||||
| US | 2,949 | 678 | 3,927 | 1,983 | 904 | 839 | ||||||||||||||
| Mexico | 2,238 | 689 | 3,010 | 1,765 | 1,093 | 794 | ||||||||||||||
| Brazil | 4,740 | 1,549 | 6,309 | 4,248 | 1,551 | 996 | ||||||||||||||
| Chile | 1,002 | 297 | 1,410 | 926 | 623 | 369 | ||||||||||||||
| Argentina | 939 | 390 | 1,145 | 647 | 393 | 262 | ||||||||||||||
| Corporate Centre | (232) | (16) | (351) | (535) | (807) | (713) | ||||||||||||||
| Rest of the Group | 522 | 428 | 1,091 | 277 | 129 | 91 | ||||||||||||||
| TOTAL GROUP | 22,716 | 6,684 | 31,010 | 18,145 | 10,303 | 6,833 | ||||||||||||||
Underlying attributable profit to the parent distribution1 | ||
| H1 2025 | ||
1. As a % of operating areas. Excluding the Corporate Centre.
Underlying attributable profit to the parent. H1 2025 | ||
| EUR million. % change YoY | ||
 | ||
 | ||
 | ||
 | ||
 | ||
| Var | Var2 | ||||
| +9 | % | +14 | % | ||
| -3 | % | -1 | % | ||
| +9 | % | +15 | % | ||
| +19 | % | +24 | % | ||
| — | — | ||||
2. Changes in constant euros.
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| January-June 2024 | ||||||||||||||||||||
| Main items of the underlying income statement | ||||||||||||||||||||
| EUR million | ||||||||||||||||||||
| Primary segments | Net interest income | Net fee income | Total income | Net operating income | Profit before tax | Underlying attributable profit to the parent | ||||||||||||||
| Retail & Commercial Banking | 13,996 | 2,390 | 16,277 | 9,894 | 5,243 | 3,374 | ||||||||||||||
| Digital Consumer Bank | 5,366 | 742 | 6,449 | 3,832 | 1,341 | 1,069 | ||||||||||||||
| Corporate & Investment Banking | 2,015 | 1,280 | 4,178 | 2,367 | 2,151 | 1,405 | ||||||||||||||
| Wealth Management & Insurance | 879 | 721 | 1,837 | 1,153 | 1,106 | 794 | ||||||||||||||
| Payments | 1,302 | 1,344 | 2,659 | 1,414 | 274 | 25 | ||||||||||||||
| PagoNxt | 62 | 456 | 583 | (18) | (286) | (304) | ||||||||||||||
| Cards | 1,239 | 888 | 2,075 | 1,432 | 560 | 330 | ||||||||||||||
| Corporate Centre | (100) | 1 | (350) | (524) | (606) | (609) | ||||||||||||||
| TOTAL GROUP | 23,457 | 6,477 | 31,050 | 18,137 | 9,508 | 6,059 | ||||||||||||||
| Secondary segments | ||||||||||||||||||||
| Spain | 3,656 | 1,484 | 6,065 | 3,999 | 2,681 | 1,756 | ||||||||||||||
| United Kingdom | 2,381 | 142 | 2,516 | 1,065 | 849 | 630 | ||||||||||||||
| Portugal | 844 | 242 | 1,142 | 874 | 834 | 563 | ||||||||||||||
| Poland | 1,384 | 339 | 1,711 | 1,245 | 779 | 386 | ||||||||||||||
| DCB Europe | 2,187 | 451 | 2,854 | 1,534 | 757 | 453 | ||||||||||||||
| US | 2,824 | 539 | 3,769 | 1,866 | 612 | 664 | ||||||||||||||
| Mexico | 2,421 | 733 | 3,244 | 1,901 | 1,149 | 840 | ||||||||||||||
| Brazil | 5,235 | 1,734 | 6,984 | 4,719 | 1,935 | 1,141 | ||||||||||||||
| Chile | 824 | 265 | 1,187 | 721 | 450 | 253 | ||||||||||||||
| Argentina | 1,423 | 204 | 1,020 | 606 | 332 | 266 | ||||||||||||||
| Corporate Centre | (100) | 1 | (350) | (524) | (606) | (609) | ||||||||||||||
| Rest of the Group | 379 | 342 | 909 | 129 | (264) | (283) | ||||||||||||||
| TOTAL GROUP | 23,457 | 6,477 | 31,050 | 18,137 | 9,508 | 6,059 | ||||||||||||||
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| RETAIL | Underlying attributable profit | EUR 3,687 mn | |||||||||||||||
→ We continued to drive our ONE Transformation programme to support our vision of becoming a digital bank with branches, through the implementation of a common operating model and the rollout of our global technological platform. → Loans decreased 1% year-on-year due to declines in SMEs and corporates. Deposits rose 3% in constant euros, with positive dynamics in most countries. → Attributable profit reached EUR 3,687 million, increasing 9% year-on-year and +14% in constant euros, driven by the good revenue performance while also favoured by the impact of recording the temporary levy on revenue earned in Spain in full in Q1 2024 (accrued quarterly in 2025). | |||||||||||||||||
Strategy
In Q2 2025, we continued to make progress in the execution of our strategic priorities, consolidating our vision of being a digital bank with branches, leveraging a common operating model and a global technology platform.
We are successfully executing our strategic business priorities:
•Transformation of our operating model, which leverages our unique combination of the Group's global scale and local presence, based on three pillars:
•Customer experience. We continued to drive product digitalization and optimize customer journeys, resulting in double-digit year-on-year growth in digital sales. In Brazil, for example, our new digital capabilities enable us to offer hyper-personalized solutions, improving sales conversion. In addition, we continued to implement the new branch and WorkCafé model.
•Operational leverage. We continued to simplify and digitalize processes while promoting leaner and more agile structures. This enabled us to reduce non-commercial FTEs per million customers by 14% year-on-year. Artificial intelligence (AI) is gaining prominence in automation, enabling more efficient processes and lower operational burden, supported by solutions such as Zenith, our proprietary AI-based tool.
•Global Technology Platform. All of our units continue to accelerate their convergence towards a common platform. The volume of transactions processed through Gravity, our back-end technology, continued to increase, while we enhanced digital experience through ODS, our cloud-based front-end solution, activated global products and significantly reduced time-to-market. In Spain, we completed the integration of Gravity bringing as closer to becoming the first major Western bank operating 100% in the cloud, improving digital channel response
times and reducing costs. With this milestone, together with the deployment of Gravity in Chile at the beginning of the year, 14% of our active customers already benefit from back-end technology. In addition, in Spain we finished the deployment of our global commercial tool in the branch network, improving agent productivity and product sales, which is already reflected in improved customer experience.
•Transformation of the business model. We are deepening value creation and positioning the customer at the centre of our management:
•We provide a better customer experience through a simpler and tailored offering and with hyper-personalization capabilities for our key segments, as well as a greater commercial focus. This enables us to build stronger relationships with our customers. In Spain, for example, we launched a new value proposition for Select customers, with exclusive advantages to improve their experience, which is also available for other customer segments through subscription.
•We differentiate ourselves by promoting the network effect to better serve our customers. By taking advantage of Group capabilities, we offer a complete value propositions to our Retail customers. A good example was the incorporation of Ebury and Tresmares products and services. Moreover, total income continued to increase in our business with multinationals and is another example of how our scale enables us to offer integrated and differentiated solutions.
•Structural efficiency improvement. The transformation of our operating and business model continued to drive structural efficiency improvements through greater commercial power, focusing on expanding value-added services, together with operational leverage and common technology.
Retail. Customers. June 2025 | ||||||||||||||||||||||||||||||||
| Thousands and year-on-year change | ||||||||||||||||||||||||||||||||
| Total Retail | | | | | |||||||||||||
| Total customers | 150,197 | 15,202 | 22,526 | 21,534 | 71,105 | ||||||||||||
| +5% | +2% | 0% | +3% | +8% | |||||||||||||
| Active customers | 80,006 | 8,877 | 13,514 | 11,056 | 32,976 | ||||||||||||
| +4% | +5% | -1% | +5% | +5% | |||||||||||||
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Business performance
Gross loans and advances to customers, excluding reverse repos and in constant euros, decreased 1% year-on-year, affected by declines in SMEs and corporates.
In individuals, there were reductions in mortgage portfolios in the UK, in line with our focus on profitability and capital optimization, in Spain, still impacted by prepayments, and in Chile due to lower demand. These declines were offset by good performances in mortgages in the other countries and personal loans especially in Spain, Argentina and Poland.
SME loans were affected by lower volumes in Spain and the UK, with positive dynamics across the rest of our footprint. Corporate loans declined in Spain, in line with our focus on profitability, in the US, due to the run-off of non-core portfolios, and in Brazil, affected by the macro environment.
Customer deposits, excluding repos and in constant euros, grew 3% year-on-year, driven by good performances in most countries. By product, there was a 14% increase in time deposits with good performances in most countries in Europe and South America. Demand deposits were stable, increasing across the board except in the UK and Brazil. Mutual funds rose 18% year-on-year in constant euros, with positive performances in most countries. Overall, customer funds increased 5% year-on-year in constant euros.
Retail. Business performance. June 2025 | ||||||||||||||||||||
| EUR billion and YoY % change in constant euros | ||||||||||||||||||||
| 599 | -1% | 748 | +5% | |||||||||||||||||
| ||
| ||
| ||
| ||
| Others | ||
| ||
| ||
| ||
| ||
| Others | ||
| Gross loans and advances to customers excl. reverse repos | Customer deposits excl. repos + mutual funds | |||||||||||||||||||||||||||||||||||||
Results
Attributable profit in H1 2025 was EUR 3,687 million, 9% higher year-on-year, in part favoured by the temporary levy on revenue earned in Spain recorded in full in Q1 2024 (accrued quarterly in 2025). In constant euros profit rose 14% year-on-year, by line:
•Total income increased 2%, mainly driven by positive performances in net fee income and a lower hyperinflation adjustment in Argentina.
Net interest income also performed well, improving in a complex environment across most countries. However, it was flat year-on-year due to Argentina, which was heavily impacted by the decline in interest rates in the last twelve months. If we exclude Argentina, net interest income increased 3%, driven by a lower cost of deposits in Chile, higher mortgage profitability and a lower cost of deposits in the UK, volumes and lower cost of deposits in Mexico and higher activity in Poland.
Our more targeted products and services offering contributed to 8% net fee income growth, mainly driven by insurance, mutual funds and FX. By country, net fee income increased particularly in Argentina, Mexico and the UK.
Retail. Total income. H1 2025 | ||||||||||||||||||||||||||||||||
| EUR million and YoY % change in constant euros | ||||||||||||||||||||||||||||||||
| ||
| ||
| ||
| ||
| Others | ||
| Var | ||
| -1% | ||
| +4% | ||
| +7% | ||
| -3% | ||
| +5% | ||
| Retail | EUR 15,710 mn | +2% | |||||||||
•Costs increased 2% year-on-year. In real terms, they decreased 1%, reflecting our transformation efforts through organizational simplification, process automation and the roll out of our global platform.
•Net loan-loss provisions continued to perform well, in line with last year as improvements, mainly in Poland and Mexico, offset the rises in Brazil, impacted by the macro environment, Argentina, due to higher volumes, and normalization in the UK.
Cost of risk was 0.89% (13 bps lower year-on-year) and the NPL ratio improved to 3.06% (3.14% in June 2024).
RoTE (post-AT1) in H1 2025 was 17.2%, a 0.2 pp improvement year-on-year.
Compared to Q1 2025, the good net operating income performance (+1% in constant euros, from already high levels in Q1 2025), driven by higher NII, was not reflected in profit, due to higher provisions related to the CHF mortgage portfolio in Poland.
| Retail. Underlying income statement | |||||||||||||||||||||||
| EUR million and % change | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Q2'25 | % | excl. FX | H1'25 | % | excl. FX | ||||||||||||||||||
| Total income | 7,816 | -1 | +1 | 15,710 | -3 | +2 | |||||||||||||||||
| Expenses | -3,075 | -1 | +1 | -6,188 | -3 | +2 | |||||||||||||||||
| Net operating income | 4,740 | -1 | +1 | 9,522 | -4 | +1 | |||||||||||||||||
| LLPs | -1,399 | -2 | +1 | -2,830 | -8 | 0 | |||||||||||||||||
| PBT | 2,645 | -6 | -5 | 5,468 | +4 | +8 | |||||||||||||||||
| Underlying attrib. profit | 1,785 | -6 | -5 | 3,687 | +9 | +14 | |||||||||||||||||
Detailed financial information in appendix. | |||||||||||||||||||||||
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| RETAIL SPAIN | Profit before tax | ||||||
| EUR 1,647 mn | ||||||||
Commercial activity and business performance
In H1 2025, market share growth in payrolls and pension funds, together with the increase in customers using Bizum, supported the above-market increase in transactionality and reflects our progress in our business transformation.
Gross loans and advances to customers, excluding reverse repos, decreased 2% year-on-year affected by the decrease in SMEs and corporates, in line with our focus on active risk management and balance sheet optimization, partially offset by an improvement in personal loans.
Customer deposits, excluding repos, increased 4% year-on-year mainly due to demand deposits driven by our new value proposition for Select customers. Mutual funds increased 14%. As a result, customer funds rose 6%.
Results
Profit before tax in H1 2025 reached EUR 1,647 million, 25% higher than in H1 2024, partially driven by impact of the temporary levy on revenue earned in Spain, which was recorded in full in Q1 2024 (accrued quarterly in 2025). By line:
•Total income decreased 1%, mainly due to the decline in net interest income in a lower interest rate environment. Net fee income was flat, as the increase in fees from commercial activity, mainly mutual funds, offset a regulatory change affecting instant transfers.
•Costs increased slightly (+1%). In real terms, costs declined, benefitting from process automation and greater digital adoption. The efficiency ratio was 32.0%.
•Net loan-loss provisions decreased 6%, mainly due to the good portfolio performance and active risk management, which improved credit quality.
In the quarter, profit before tax increased 3%, as the good performance in net loan-loss provisions, driven by better credit quality and lower costs, more than offset net interest income pressure in a lower interest rate environment.
| Retail Spain. Underlying income statement | |||||||||||||||||
| EUR million and % change | |||||||||||||||||
| Q2'25 | / Q1'25 | H1'25 | / H1'24 | ||||||||||||||
| Total income | 1,766 | -2 | 3,560 | -1 | |||||||||||||
| Expenses | -567 | -1 | -1,138 | +1 | |||||||||||||
| Net operating income | 1,200 | -2 | 2,423 | -2 | |||||||||||||
| LLPs | -244 | -16 | -535 | -6 | |||||||||||||
| PBT | 837 | +3 | 1,647 | +25 | |||||||||||||
Detailed financial information in appendix. | |||||||||||||||||
| RETAIL UK | Profit before tax | ||||||
| EUR 678 mn | ||||||||
Commercial activity and business performance
In H1 2025, we made progress in our transformation programme through digitalization and automation, which helped simplify the business and improve efficiency.
Gross loans and advances to customers, excluding reverse repos and in constant euros, decreased 2% year-on-year due to mortgages, in line with balance sheet optimization strategy. However, the trend has been positive since the beginning of the year, with a progressive recovery driven by new business volumes.
Customer deposits, excluding repos and in constant euros, fell 1%, mainly due to a drop in demand deposits, with a change of mix towards time deposits. Mutual funds decreased 2% year-on-year in constant euros. As a result, customer funds declined 1% in constant euros.
Results
Profit before tax in H1 2025 reached EUR 678 million, 12% lower than in H1 2024. In constant euros, profit before tax decreased 13%, by line:
•Total income increased 4%, mainly due to a good net interest income performance, driven by higher mortgage yields and a lower cost of deposits.
•Costs fell 4%, boosted by process automation and our efforts to simplify the operating model. Overall, net operating income grew 14% and the efficiency ratio improved 4.0 pp to 54.1%.
•Net loan-loss provisions increased but remained at low levels, due to LLP normalization.
•Other gains (losses) and provisions recorded more negative results, due to impacts related to transformation charges.
In the quarter, profit before tax decreased 4% in constant euros, due to the mentioned cost of risk normalization and the impact of lower interest rates on net interest income, with stable costs.
| Retail United Kingdom. Underlying income statement | |||||||||||||||||||||||
| EUR million and % change | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Q2'25 | % | excl. FX | H1'25 | % | excl. FX | ||||||||||||||||||
| Total income | 1,149 | -3 | -2 | 2,339 | +5 | +4 | |||||||||||||||||
| Expenses | -628 | -2 | 0 | -1,266 | -2 | -4 | |||||||||||||||||
| Net operating income | 521 | -6 | -4 | 1,072 | +15 | +14 | |||||||||||||||||
| LLPs | -44 | +23 | +24 | -80 | +304 | +299 | |||||||||||||||||
| PBT | 330 | -5 | -4 | 678 | -12 | -13 | |||||||||||||||||
Detailed financial information in appendix. | |||||||||||||||||||||||
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| RETAIL MEXICO | Profit before tax | ||||||
| EUR 677 mn | ||||||||
Commercial activity and business performance
In H1 2025, we made great strides in the transformation of our operating model. 74% of our active customers use digital channels and, at the same time, the number of digital customers increased 9% year-on-year.
Gross loans and advances to customers, excluding reverse repos and in constant euros, increased 5% year-on-year, driven by generalized increases in most products, especially in the mortgage portfolio (+7%), where we have a market share of 17%, well above our total loan market share (12%).
Customer deposits, excluding repos and in constant euros, rose 2% year-on-year, in a lower interest rate environment. We are targeting mutual fund growth, resulting in a 25% increase in constant euros. As a result, customer funds rose 8% in constant euros.
Results
Profit before tax in H1 2025 reached EUR 677 million, 1% higher than in H1 2024. In constant euros, it increased 19%, as follows:
•Total income increased 7%, mainly driven by good performances in net interest income, supported by higher activity and a lower cost of deposits, and net fee income, particularly from mutual funds.
•Costs increased 6%, impacted by inflation and higher labour costs. Net operating income grew 7% and the efficiency ratio improved 9 bps to 44.0%.
•Net loan-loss provisions decreased 19% reflecting better credit quality, due to a more positive macro outlook.
In the quarter, profit before tax increased 1% in constant euros, driven by the good net fee income performance, mainly due to insurance, and cost discipline. This positive performance more than offset higher net loan-loss provisions, due to some single names in the corporate segment.
| Retail Mexico. Underlying income statement | |||||||||||||||||||||||
| EUR million and % change | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Q2'25 | % | excl. FX | H1'25 | % | excl. FX | ||||||||||||||||||
| Total income | 891 | -1 | +2 | 1,787 | -10 | +7 | |||||||||||||||||
| Expenses | -390 | -2 | +1 | -787 | -10 | +6 | |||||||||||||||||
| Net operating income | 501 | 0 | +3 | 1,000 | -10 | +7 | |||||||||||||||||
| LLPs | -150 | +12 | +15 | -285 | -31 | -19 | |||||||||||||||||
| PBT | 335 | -2 | +1 | 677 | +1 | +19 | |||||||||||||||||
Detailed financial information in appendix. | |||||||||||||||||||||||
| RETAIL BRAZIL | Profit before tax | ||||||
| EUR 389 mn | ||||||||
Commercial activity and business performance
Our business strategy remains focused on: i) expanding the high-net worth and corporate segments by offering a personalized and global experience, and ii) providing a more integrated multi-channel experience and a more simplified product offering to the mass segment. Additionally, we are working to build a closer relationship with our corporate customers, with tailored offerings and enhanced the multi-channel approach.
Gross loans and advances to customers, excluding reverse repos and in constant euros, fell 6% year-on-year as increases in mortgages and SMEs did not offset declines in personal loans, in line with our strategy to focus on profitable growth and capital optimization, and in corporates due to the macro environment.
Customer deposits, excluding repos and in constant euros, increased 7% year-on-year, mainly due to time deposits, with double-digit growth, in line with the market, and especially in individuals. Mutual funds grew 10% year-on-year in constant euros. As a result, customer funds rose 8% in constant euros.
Results
Profit before tax in H1 2025 reached EUR 389 million, 48% less than in H1 2024. In constant euros, it fell 40%, by line:
•Total income decreased 3%, impacted by negative sensitivity of the balance sheet to higher interest rates, lower net fee income and gains on financial transactions, in a macroeconomic environment with lower demand.
•Costs increased 3%, rising below inflation, reflecting our transformation efforts in simplification, automation and digitalization.
•Net loan-loss provisions rose 9% (though remaining at controlled levels) mainly in corporates, impacted by the macro deterioration.
In the quarter, profit before tax fell 30% in constant euros, despite a resilient net interest income and strict cost control, due to lower gains on financial transactions and higher provisions, impacted by the macro deterioration.
| Retail Brazil. Underlying income statement | |||||||||||||||||||||||
| EUR million and % change | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Q2'25 | % | excl. FX | H1'25 | % | excl. FX | ||||||||||||||||||
| Total income | 1,779 | -5 | -1 | 3,657 | -15 | -3 | |||||||||||||||||
| Expenses | -724 | -5 | -1 | -1,485 | -10 | +3 | |||||||||||||||||
| Net operating income | 1,055 | -6 | -1 | 2,172 | -18 | -6 | |||||||||||||||||
| LLPs | -713 | -1 | +4 | -1,431 | -5 | +9 | |||||||||||||||||
| PBT | 156 | -33 | -30 | 389 | -48 | -40 | |||||||||||||||||
Detailed financial information in appendix. | |||||||||||||||||||||||
34 | | January - June 2025 | ||||||
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| CONSUMER | Underlying attributable profit | EUR 1,042 mn | |||||||||||||||
→ We continue to advance in our priority to become the preferred choice of our partners and end customers, and maximize profitability, while being the most cost competitive player in the industry. → Loans rose 2% year-on-year in constant euros, +4% in auto, especially in Europe and Latin America. Deposits grew 10% in constant euros, with strong growth in both DCB Europe and the Americas, supported by Openbank, in line with our strategy to lower funding costs and reduce net interest income volatility across the cycle. → Attributable profit of EUR 1,042 million in H1 2025, down 3% year-on-year and -1% in constant euros, as an 11% increase in profit before tax, driven by higher net interest income, lower net loan-loss provisions and lower other results and provisions (temporary levy on revenue earned in Spain in 2024) was not fully reflected in profit, due to the impact of lower fiscal benefits following reduced electric vehicle demand. | |||||||||||||||||
Strategy
Digital Consumer Bank (Consumer) is a leading consumer finance company globally, with operations spanning auto financing, consumer lending and digital banking services (Openbank). It operates in 26 countries in Europe and the Americas and serves the financing needs at the point of sale (both physical and digital) of 26 million customers.
Our vision is to become the preferred choice of our partners and end customers and offer greater profitability and value creation to our shareholders, while being the most cost competitive player in the industry.
To respond to changing customer needs and the constantly evolving mobility and consumer finance ecosystem while delivering on our vision, we are transforming our operating model from a primarily monoline lending-based model to a full service digital consumer banking model by focusing on our strategic priorities:
•Converge towards global platforms. We continue to expand the functionalities of our auto leasing platform and foster growth in Zinia, our check-out lending technology, by pursuing new agreements and extending existing ones across regions. Additionally, in Europe, we have moved from one platform per country to three in total, progressing in our final goal of having one common platform and delivering consistent experiences across markets.
•Grow and consolidate partnerships and acquisitions. To retain and consolidate our leadership in mobility financing, we offer global and best-in-class solutions, integrated into our partners' (OEMs, importers and retailers) processes. We continue to work on improving cross-regional partnerships and consolidating new ones, by leveraging existing agreements across our consumer finance and auto businesses and in Openbank.
•Promote the network effect. We are aligning the business with the Group’s operating model and becoming more agile through the simplification and automation of processes to improve customer experience and increase scalability.
In Q2 2025, we made great progress in our strategic priorities, as we advanced in the following initiatives:
•In mobility finance, we continued to enhance our sales and post-sales digital capabilities, further developed our leasing platform, pursued commercial opportunities and continued to manage agreements globally, having recently signed partnerships with new entrants in Europe.
In the US, we remained focused on: i) our pricing discipline and capital stewardship to drive profitable growth across the full credit spectrum while balancing credit risk and, ii) diversifying origination channels.
In Latin America, we remained #1 in new vehicle financing across our footprint as we continued to focus on developing strategic alliances and new products to further consolidate our franchise.
•In consumer lending, Zinia continued to leverage strong partnerships. In Q2 2025, we delivered solid results supported by Amazon's spring promotions and the full launch of the co-branded card in Austria. We remained focused on the integration of CrediScotia in Peru (acquisition finalized in Q1 2025).
•As part of our profitable growth strategy we continued to: i) boost customer deposits, with more than EUR 7 billion captured year-to-date, on the back of targeted campaigns and the recent successful Openbank launches in the US, Mexico and Germany and, ii) actively manage our balance sheet to optimize capital.
In Openbank, we continued to upgrade our customer proposition, fund asset growth and capture synergies. As a result: i) in the US, we posted a solid performance both in terms of new customers and deposits captured, with our partnership with Verizon gaining traction, ii) in Mexico, we exceeded expectations, having acquired more than 130,000 new customers since its launch in Q1 2025, reflecting our focus on digital acquisition and attractive yield products and, iii) in Germany, we have been delivering a secure, seamless and mobile-first experience since going live in January, and are now expanding our product offering to continue to deliver even more value to our customers.
| Consumer. Total customers | ||
| Millions | ||
| +4% | ||||||||
January - June 2025 | | 35 | ||||||
Significant events Key consolidated data Business model | Group financial information | Financial information by segment | Sustainability Corporate governance | Appendix | Index | ||||||||||||||||||||||||||||||
Business performance
Gross loans and advances to customers, excluding reverse repos and in constant euros, increased 2% year-on-year, driven by auto, with continued growth in DCBE, in a market that is picking up from a weak start in the beginning of the year, and double-digit increases across Latin America.
Trends in new lending (-10% year-on-year in constant euros) reflect our strategy to prioritize profitability over growth as we remain prudent in terms of originations in an environment marked by volatility and geopolitical uncertainty.
Our EUR 15 billion leasing portfolio decreased 10% year-on-year in constant euros, as growth in Europe was more than offset by a decline in the US, due to the wind down of business through our relationship with Stellantis, lower demand for electric vehicles and our strategy to prioritize profitability over volumes.
In terms of liabilities, our access to wholesale funding markets remained strong and diversified. Customer deposits, excluding repos and in constant euros, rose 10% year-on-year (increasing at a similar pace in both DCB Europe and the US), in line with our deposit gathering strategy, supported by Openbank. They now account for 62% of Consumer's total funding (4.5 pp more than a year ago). Including mutual funds, customer funds rose 11% in constant euros.
Consumer. Business. June 2025 | |||||||||||||||||||||||||||||
| EUR billion and YoY % change in constant euros | |||||||||||||||||||||||||||||
| 211 | +2% | 138 | +11% | ||||||||||||||||||||||||||
| DCB Europe | |||||
| DCB US | |||||
| DCB Europe | |||||
| DCB US | |||||
| Gross loans and advances to customers excl. reverse repos | Customer deposits excl. repos + mutual funds | |||||||||||||||||||||||||||||||||||||
Consumer. Leasing portfolio. June 2025 | |||||||||||
| EUR billion and YoY % change in constant euros | |||||||||||
| Total leasing | 15 | -10% | |||||||||
ResultsIn H1 2025, attributable profit reached EUR 1,042 million, 3% lower than in H1 2024. In constant euros, profit declined 1%, as double-digit growth in profit before tax (+11%) was offset by a greater tax burden. By line and in constant euros:
•Total income grew 2%, driven by net interest income, which rose 5%, backed by notable increases across our footprint, with Europe and Latin America supported by our efforts in margin management, volumes growth and CrediScotia's integration in Peru. In the US, higher yields more than offset lower volumes.
Net fee income decreased 6%, even with strong growth in the US (auto servicing fees), mainly due to DCBE, which was impacted by new insurance regulation in Germany and the drop in new car registrations in the EU.
Gains on financial transactions declined, mainly driven by DCBE, while leasing income also fell, due to lower volumes, residual values and gains on sales, particularly in the US.
Consumer. Total income. H1 2025 | ||||||||||||||||||||||||||||||||
| EUR million and YoY % change in constant euros | ||||||||||||||||||||||||||||||||
| DCB Europe | |||||
| DCB US | |||||
| Other | |||||
| Var | ||
| -1 | % | |
| 0 | % | |
| +15 | % | |
•Costs increased 3% year-on-year. In real terms, they rose just 1%, supported by savings from our efficiency and transformation efforts, particularly in Europe and the US, as we continued to invest in our leasing and check-out lending platforms, Openbank and CrediScotia's integration in Peru.
•Net loan-loss provisions fell 3%, mainly driven by an excellent performance in auto in the US, which more than offset a pick up in Europe (mostly due to the macro environment and corporates in Germany), Mexico (volumes and model updates) and Peru (CrediScotia). Credit quality remained controlled with the cost of risk at 2.09% and the NPL ratio at 4.97%.
•Other gains (losses) and provisions registered a lower loss in H1 2025, compared to the same period in 2024, mainly due to the temporary levy on revenue earned in Spain recorded in Q1 2024.
•The effective tax rate normalized, as a decline in electric vehicle leasing volumes in the US this year resulted in lower benefits from fiscal incentives.
As a result of the aforementioned performance, RoTE (post-AT1) stood at 10.4% in H1 2025.
Compared to Q1 2025, attributable profit increased 16% in constant euros, on the back of continued strength in net interest income, in line with our focus on margin management, better net fee income, lower net loan-loss provisions (mainly supported by model updates in Brazil and portfolio sales) and stable costs.
| Consumer. Underlying income statement | |||||||||||||||||||||||
| EUR million and % change | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Q2'25 | % | excl. FX | H1'25 | % | excl. FX | ||||||||||||||||||
| Total income | 3,191 | -1 | +2 | 6,425 | 0 | +2 | |||||||||||||||||
| Expenses | -1,308 | -4 | 0 | -2,664 | +2 | +3 | |||||||||||||||||
| Net operating income | 1,883 | 0 | +4 | 3,761 | -2 | +1 | |||||||||||||||||
| LLPs | -956 | -15 | -10 | -2,075 | -5 | -3 | |||||||||||||||||
| PBT | 781 | +16 | +19 | 1,456 | +9 | +11 | |||||||||||||||||
| Underlying attrib. profit | 551 | +12 | +16 | 1,042 | -3 | -1 | |||||||||||||||||
Detailed financial information in appendix. | |||||||||||||||||||||||
36 | | January - June 2025 | ||||||
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| DCBE | DCB EUROPE | Profit before tax | ||||||
| EUR 727 mn | ||||||||
Commercial activity and business performance
The drop in new car registrations in the EU in H1 2025 and our focus on profitability over volumes are reflected in a 5% year-on-year drop in new business volumes in constant euros (mainly new auto).
However, the stock of gross loans and advances to customers, excluding reverse repos and in constant euros, continued to rise, +3% year-on-year, mainly driven by auto balances.
Customer deposits, excluding repos and in constant euros, grew 10%, particularly driven by demand deposits, in line with our strategy to increase retail funding. Mutual funds increased 15% in constant euros, albeit from low levels. Our access to wholesale funding markets remains strong and diversified.
Results
Profit before tax in H1 2025 declined 4% year-on-year to EUR 727 million. In constant euros, profit before tax also fell 4%, as follows:
•Total income remained resilient in a more complicated operating environment, as the strong performance in net interest income (+4%), backed by our active margin management and volumes growth, and better leasing income did not fully offset the impact on net fee income from new insurance regulation in Germany and the drop in new car registrations in the EU and a fall in gains on financial transactions (interest rate cuts driving weaker hedging results).
•Costs rose just 0.6%, less than inflation (-2% in real terms), supported by the benefits from the transformation, simplification and centralization of our operating model, which remains one of our key priorities.
•Net loan-loss provisions rose 6%, mainly in Germany, driven by the macro environment and worse credit quality in corporates.
•Other gains (losses) and provisions recorded a lower loss, due to the temporary levy on revenue earned in Spain recorded in Q1 2024.
Compared to Q1 2025, profit before tax increased 4% in constant euros, with a strong performance in net operating income after provisions (+21%), mainly backed by solid net interest income growth (+4%) and lower costs and net loan-loss provisions (supported by portfolio sales in the Nordic countries), partially offset by higher provisions related to the CHF mortgage portfolio in Poland.
| DCB Europe. Underlying income statement | |||||||||||||||||||||||
| EUR million and % change | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Q2'25 | % | excl. FX | H1'25 | % | excl. FX | ||||||||||||||||||
| Total income | 1,424 | +2 | +2 | 2,827 | -1 | -1 | |||||||||||||||||
| Expenses | -660 | -1 | -1 | -1,326 | +1 | +1 | |||||||||||||||||
| Net operating income | 765 | +4 | +4 | 1,500 | -2 | -2 | |||||||||||||||||
| LLPs | -284 | -16 | -15 | -619 | +6 | +6 | |||||||||||||||||
| PBT | 371 | +4 | +4 | 727 | -4 | -4 | |||||||||||||||||
Detailed financial information in appendix. | |||||||||||||||||||||||
| DCB US | Profit before tax | ||||||
| EUR 501 mn | ||||||||
Commercial activity and business performance
During Q2 2025, Openbank continued to exceed expectations, maintaining the good trends seen in previous quarters, having welcomed 141,000 new customers and gathered approximately USD 5.1 billion in deposit balances since its launch. Our multi-year partnership with Verizon is also delivering strong results, with more than 12,000 active accounts and approximately USD 300 million in balances captured since its launch in April.
Gross loans and advances to customers, excluding reverse repos and in constant euros, declined 7% year-on-year, mainly impacted by our asset rotation initiatives, in line with our capital light strategy.
Customer deposits, excluding repos and in constant euros, rose 11% year-on-year, backed by the aforementioned growth in Openbank and solid retention rates in our branch based deposits. Mutual funds also grew, contributing to an 11% increase in customer funds.
Results
Profit before tax in H1 2025 was 41% higher year-on-year, reaching EUR 501 million. In constant euros, it rose 42%, as follows:
•Total income was flat, as stronger net interest income (higher auto loan yields) and net fee income (auto servicing fees), were offset by weaker leasing income, mainly due to lower volumes, residual values and gains on sales.
•Costs increased slightly (+1%) as savings from our transformation initiatives practically compensated our investments in Openbank.
•Net loan-loss provisions improved 13%, driven by resilient customer behaviour, improved used car prices and a stable labour market, and also supported by capital relief measures, which more than offset the NPL normalization. As a result, cost of risk improved 46 bps to 4.22%.
Compared to Q1 2025, profit before tax grew strongly (+20% in constant euros), mainly on the back of better net fee income, a decline in costs (lower Openbank campaign expenses and savings linked to our transformation efforts) and lower net loan-loss provisions.
| DCB US. Underlying income statement | |||||||||||||||||||||||
| EUR million and % change | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Q2'25 | % | excl. FX | H1'25 | % | excl. FX | ||||||||||||||||||
| Total income | 1,270 | -7 | 0 | 2,631 | -1 | 0 | |||||||||||||||||
| Expenses | -520 | -9 | -2 | -1,094 | 0 | +1 | |||||||||||||||||
| Net operating income | 749 | -5 | +2 | 1,537 | -2 | -1 | |||||||||||||||||
| LLPs | -466 | -11 | -4 | -990 | -14 | -13 | |||||||||||||||||
| PBT | 265 | +12 | +20 | 501 | +41 | +42 | |||||||||||||||||
Detailed financial information in appendix. | |||||||||||||||||||||||
January - June 2025 | | 37 | ||||||
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| CIB | Underlying attributable profit | EUR 1,534 mn | |||||||||||||||
→ Our enhanced centres of expertise and Global Markets and US Banking Build-Out (US BBO) initiatives are helping to improve client penetration, reflected in the types of deals we are participating in and the roles we are currently winning. → Strong activity year-on-year, even in a complex environment, with Global Markets driving growth on the back of market volatility and good performances across geographic areas. Corporate Finance continued to gain scale in the US. → Attributable profit reached EUR 1,534 million, a 9% increase year-on-year (+15% in constant euros). We had a good revenue performance, growing 9% in constant euros, and lower provisions, reflecting the high quality of our credit portfolio. We maintained a leading position in efficiency and profitability. | |||||||||||||||||
Strategy
Our Corporate & Investment Banking (CIB) business is well diversified by business line, geographically and by client type, which helps reduce the potential impacts from risks in any specific market or sector and better support our clients. This is especially important in the current environment characterized by geopolitical tensions and market volatility.
Our focus for 2025 is on continuing to develop our core initiatives in Global Markets (GM) and Global Banking (GB) to deliver an enhanced value proposition and drive profitable growth by:
•Fully leveraging our centres of expertise and expanded coverage to strengthen our positioning in our core markets, fostering collaboration between our businesses to increase connectivity.
Additionally, our enhanced capabilities are providing important opportunities between Global Banking, Global Transactional Banking (GTB) and Global Markets. This is driving significant growth, particularly in our Global Markets franchise, which is also supported by the investments we have made.
•Continuing to advance in the execution of our automation and digitalization initiatives, while exploring tangible opportunities afforded by AI, both for business and support functions. We are developing solutions in digital assets and tokenization to streamline processes, increase efficiency and enhance controls. This quarter, of note was the execution of Santander’s first programmable intraday physical repo through Digital Financing, demonstrating our strength, as only a small number of institutions have the capabilities to participate in the digital repo infrastructure.
•Deepening our client relationships by fostering and expanding our advisory and value-added businesses on the back of our transformation initiatives, with a particular focus on the US and fee businesses.
In the US, we are executing our growth plan, evolving our specialized investment banking footprint by selectively broadening coverage and our product platform. We increased core client penetration and ,as a result, we are gaining market share and more important roles in Investment Banking, in a weaker market.
•Maximizing the impact of our US BBO initiative on the global CIB franchise by leveraging the newly developed capabilities and coverage, which is providing new opportunities in other Group businesses and countries.
As a key driver of Santander’s growth, we continue to foster collaboration with other businesses to generate additional value for the Group. In CIB, for example, we provide FX solutions to Retail, a full suite of products to Commercial, product development and structuring to Wealth, and capital markets solutions and advisory to auto finance in Consumer, among others.
•Further evolving CIB's global operating model, in line with the Group’s initiatives to expand our global platforms and strengthen the support functions to foster business growth, team specialization and synergies.
We are improving our Originate-to-Share (OtS) model, with focus on capital efficiency, active management and profitability.
| Recent awards | Ranking in League Tables H1 2025 |  | |||||||||||||||||||||
| Euromoney | Global Capital | Structured Finance | Debt Capital Markets | ||||||||||||||||||||
Best Investment Bank in Spain and Poland | SRT Bank of the Year in Europe and US / Emerging Force in SSA Bonds |  |  | ||||||||||||||||||||
| IJGlobal | Global Finance | Equity Capital Markets | M&A | ECAs | |||||||||||||||||||
Renewable Deal of the Year - Offshore Wind, North America Oil & Gas Deal of the Year - Africa | Best Bank for Transaction Banking in Latin America |  |  |  | |||||||||||||||||||
38 | | January - June 2025 | ||||||
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Business performance
We remain focused on capital-light activity and actively managing our balance sheet. As a result, our total revenue to risk-weighted assets ratio improved 1.1 pp year-on-year up to 8.0%.
Gross customer loans and advances (which are mainly concentrated in GB and GTB), excluding reverse repos and in constant euros, were down 2% year-on-year, as the increase in GM could not compensate the decrease in GTB (mainly South America). Customer deposits, excluding repos and in constant euros, were flat year-on-year, as the growth in Cash Management (GTB) was offset by the reduction in GM, in line with our strategy to optimize funding costs.
By business line, we had the following performance:
•Global Transaction Banking recorded good activity levels in a challenging business environment:
In Trade & Working Capital Solutions, activity continued to accelerate driven by: i) new value-added initiatives, such as the enhanced platform to centralize our clients' confirming needs, ii) the expansion into new segments and the diversification of client portfolios, partnering with major private equity and credit funds, as well as asset managers, such as Pemberton and Apollo, and iii) good business performances in key markets, such as the US.
In Export Finance, activity was lower compared to a particularly strong H1 2024. During Q2 2025, we continued to leverage our robust capabilities in the coordination of important financing operations, closing the biggest ever advisory deal for Santander, a EUR 6.3 billion ECA-covered project finance in Poland.
In Cash Management, there were good activity levels, mainly in Mexico and Brazil, partially affected by the lower interest rate environment, especially in Spain and Argentina.
•In Global Banking, activity in H1 2025 was slightly better, albeit with a mixed performance across products:
In Debt Finance, there was a slight decline year-on-year, but performed well taking into account the volatile environment and geopolitical uncertainty. Syndicated Loans and Acquisition Finance stood out in Europe and South America, supported by the recovery of international DCM transactions in Argentina.
In Corporate Finance (CF), good trends continued with strong activity growth despite a less favourable environment, especially in ECM, where we successfully executed, either as global coordinator or bookrunner, 29 initial public offerings (IPOs) and 5 SPACs acting as sole bookrunner and we are top 10 globally and top 3 in Europe and the US in IPOs. In M&A, of note was our role as financial advisor to Stonepeak it the acquisition of a USD 5.7 billion stake in Louisiana LNG Infrastructure LLC. Additionally, our global leveraged finance franchise continued to gain scale in the US.
In Structured Finance, activity was weaker than at the beginning of the year and than this time last year, but we outperformed the market. We participated in several transactions, with leading roles (global mandated lead arranger) and leadership positions in Project Finance (renewables). Fund Finance business was affected by limited fundraising activity, but we are starting to see early signs of recovery.
•In Global Markets, record activity in the first half of the year, albeit with some normalization in Q2 compared to the strong start to the year, which benefited from high volatility. There were excellent performances across our footprint and products, and we are expanding our institutional franchise, in line with our strategy.
Results
Attributable profit in H1 2025 rose 9% year-on-year to EUR 1,534 million. In constant euros, it grew 15%, with the following detail:
•Total income rose 9%, supported by solid gains on financial transactions, up 14%, mainly due to higher activity in GM, by net fee income performances in all businesses (+9%, favoured by the US BBO initiative), and by net interest income, which rose 4%, due to higher activity in GM.
By country, there were good revenue performances in the US, Brazil, Mexico and Argentina, with European units also continuing to grow, but at a slower pace.
By business, strong revenue growth in GM was well balanced between fixed income business and equity products, both up double digits. In GTB, revenue increased on the back of a strong performance in Trade & Working Capital Solutions. In GB, revenue also increased, as net fee income growth in CF products (ECM and M&A) more than compensated lower revenue from Debt Finance and Structured Finance, affected by subdued activity.
CIB. Total income by business. H1 2025 | ||||||||||||||||||||||||||||||||
| EUR million and % change in constant euros | ||||||||||||||||||||||||||||||||
Note: total income includes revenue from other activities which are less material (EUR 72 million in H1'24 and -EUR 5 million in H1'25). | |||||||||||
•Costs increased 8% due to the investments made in new products and capabilities to drive growth. The efficiency ratio was 43.7%, one of the best in the sector.
•Due to the nature of the business and the high quality of our credit portfolio, net loan-loss provisions have a limited impact on results. In H1 2025, net loan-loss provisions declined, driven by a better performance in European countries.
As a result, this good business performance delivered a 20.8% RoTE (post-AT1) in H1 2025 compared to 18.1% in H1 2024, reflecting our focus on capital efficiency, active management and profitability.
Compared to a record Q1 2025, attributable profit decreased 7% in constant euros, in an environment characterized by geopolitical uncertainty. Revenue was affected by the usual seasonality in GM and by lower activity in GB and provisions were impacted by single names.
| CIB. Underlying income statement | |||||||||||||||||||||||
| EUR million and % change | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Q2'25 | % | excl. FX | H1'25 | % | excl. FX | ||||||||||||||||||
| Total income | 2,134 | -4 | -1 | 4,354 | +4 | +9 | |||||||||||||||||
| Expenses | -950 | 0 | +3 | -1,903 | +5 | +8 | |||||||||||||||||
| Net operating income | 1,183 | -7 | -4 | 2,452 | +4 | +9 | |||||||||||||||||
| LLPs | -72 | +462 | +468 | -85 | -8 | -5 | |||||||||||||||||
| PBT | 1,084 | -12 | -9 | 2,318 | +8 | +14 | |||||||||||||||||
| Underlying attrib. profit | 728 | -10 | -7 | 1,534 | +9 | +15 | |||||||||||||||||
Detailed financial information in appendix. | |||||||||||||||||||||||
January - June 2025 | | 39 | ||||||
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| WEALTH | Underlying attributable profit | EUR 948 mn | |||||||||||||||
→ We continue building the best wealth and insurance manager in Europe and the Americas, supported by our leading global private banking platform and our best-in-class funds and insurance factories that leverage our scale and global capabilities to offer the best value proposition to our customers. → Total assets under management reached new record levels of EUR 514 billion, +11% year-on-year in constant euros, on the back of solid commercial dynamics in both Private Banking and Santander Asset Management and a good market performance. In Insurance, gross written premiums reached EUR 5.6 billion, +6% year-on-year in constant euros. → Attributable profit amounted to EUR 948 million, 19% higher year-on-year (+24% in constant euros), with revenue increasing across all business lines and an RoTE (post-AT1) of 67.3%. | |||||||||||||||||
Strategy
We aim to enhance our Wealth Management & Insurance service model and value proposition through a common global platform that leverages Santander's scale and capabilities. Wealth is an important driver for the Group, delivering consistent double-digit profit growth and generating around one third of the Group's total net fee income, including fees ceded to the commercial network.
In recent years, we have been working on building a leading global private banking platform with best-in-class funds and insurance product factories that leverage our global scale and capabilities.
We continue to focus on the following strategic initiatives:
•In Private Banking (PB), we continue to consolidate our global position across key markets by reinforcing our value proposition through increased specialization. During Q2 2025, we launched Beyond Wealth, our new Global Family Office service in Spain, addressing the needs of wealthy individuals and institutions, who seek professional and tailored management of their financial, corporate and personal assets.
We also continue to expand our global offering, through a dedicated business centre for non-resident clients in Madrid, leveraging our global capabilities.
We continue to focus on value-added solutions. Following the launch of our new private assets strategy, supported by a global team that will drive top-tier global and local opportunities tailored to our clients, we successfully completed the second edition of our Global Private Asset Programme, enhancing our teams’ ability to deliver sophisticated solutions in Private Equity, Private Debt and other non-traditional strategies.
Additionally, we are evolving our operating model towards a more agile and talent-driven approach while exploring the application of artificial intelligence use cases to enhance productivity and client engagement.
| Private Banking clients | ||
| Thousands | ||
•In Santander Asset Management (SAM), we operate as a global asset manager leveraging our scale, global investment capabilities and product distribution hubs. We continue progressing with our transformation, aiming to globalize and simplify our asset management business.
In terms of retail distribution, we continued to implement an advisory model across all countries, supported by a global investments platform that provides better customer experience.
We continue to consolidate our positioning in the alternatives business, across private markets, both through organic growth and strategic initiatives. We have further reinforced our real estate capabilities with the recent launch of the new Real Estate Coliving Opportunities fund.
This quarter, we were named the Best National Asset Manager in Spain by Expansion-Allfunds and we were the asset manager with most awards at the Salmon awards in Chile.
•In Insurance, our bancassurance operation is present in more than 20 countries across the Group's global businesses. In Wealth, we are accelerating the execution of our strategy and transformation plans around our two new verticals, Life & Pensions and Property & Casualty, to deliver more value to our customers:
•In Life & Pensions, we are developing a new retirement business line, offering an integrated value proposition, for which we are working on annuities in Spain as well as enhancing our unit-linked product offering in Mexico, with the launch of a new strategic plan focused on Private Banking customers.
•In terms of Property & Casualty, we are expanding in high growth verticals such as: i) Health, where we are developing targeted solutions for our clients, and ii) Motor, through Autocompara, our motor insurance comparison platform, where we have incorporated new insurers into the platform, such as Suhai in Brazil, and a 100% phygital model for unfinished purchase processes has been implemented in Brazil and Mexico.
We remain focused on increasing the use of data to deliver personalized solutions and embed our products into customer journeys. Additionally, we are working to further enhance our customers' global experience across the full life cycle of the value proposition, driving long-lasting relationships.
Since 2023, Insurance operates under a single holding company, which has enabled us to unify management, governance, risk and control across all insurance entities. This has improved the integration of the Insurance business within the Group’s model. During this quarter, we continued to enhance our corporate governance, by incorporating new profiles into key positions within Wealth’s structure, reflecting the importance of our Insurance business for the Group’s strategy.
•Portfolio Investments was incorporated as a fourth vertical that combines the investment platforms unit and stakes in other companies. We have integrated this business line into Wealth to capture synergies and enhance our value proposition and the service provided to our customers.
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Business performance
Total assets under management (AuMs) reached new record levels of EUR 514 billion, +11% year-on-year in constant euros, driven by solid commercial activity and a positive market performance.
By business and in constant euros, volumes performed as follows:
•In PB, customer assets and liabilities reached record levels of EUR 338 billion (+11% year-on-year), with all product categories growing, especially funds as we are focusing on offering higher value-added products, such as alternative products and discretionary portfolio management. Net new money totalled EUR 10.6 billion, increasing year-on-year.
We remain focused on offering our customers the benefits of our scale and international presence. This resulted in 8% year-on-year growth in our customer base to 305,371.
•In SAM, total assets under management reached EUR 246 billion, +13% year-on-year, on the back of solid commercial activity in most countries. Net sales in H1 2025 totalled EUR 4.9 billion.
•In Insurance, gross written premiums reached EUR 5.6 billion in H1 2025, increasing 6% year-on-year, driven by life savings business.
Wealth. Business performance. June 2025 | ||||||||||||||||||||
| EUR billion and % change in constant euros | ||||||||||||||||||||
| Total AuMs | ||
| Funds and investment* | ||
| - SAM | ||
| - Private Banking | ||
| Custody | ||
| Customer deposits | ||
| Customer loans | ||
| GWPs | ||
| / Mar-25 | / Jun-24 | ||||
| +2 | % | +11 | % | ||
| +3 | % | +15 | % | ||
| +2 | % | +13 | % | ||
| +6 | % | +19 | % | ||
| +2 | % | +9 | % | ||
| +1 | % | +3 | % | ||
| +5 | % | +13 | % | ||
| +13 | % | +6 | % | ||
Note: total products marketed, advised, under custody and/or managed.
*Excluding overlaps between PB and SAM (PB clients with investment funds managed by SAM).
Results
Attributable profit in H1 2025 amounted to EUR 948 million, 19% higher year-on-year. In constant euros, it grew 24%, with the following performance by line:
•Total income was EUR 2,032 million, 14% higher year-on-year as a result of our focus on value-added solutions to expand our fee businesses.
Net interest income decreased 16% in a lower interest rate environment in most of our main units, despite higher volumes in Private Banking.
Net fee income rose 20% year-on-year to EUR 842 million, with good overall performance across businesses. Of note were the performances in Private Banking and SAM, on the back of our increased focus on boosting fee generating activities and products, solid commercial activity and a positive market performance.
Other income increased, boosted by the good performances of our joint ventures in Insurance and the stakes managed by our Portfolio Investments business line.
•Costs increased 9% year-on-year (growing less than total income), reflecting our investments to strengthen PB teams and new capabilities to address the increase in commercial activity.
Including the fees ceded to our commercial network, total revenue reached EUR 3,249 million, up 11%, on the back of more recurrent activity in Private Banking, higher volumes in SAM and the good performance of insurance related businesses.
Wealth. Total income. H1 2025 | ||||||||||||||||||||||||||||||||
| EUR million and YoY % change in constant euros | ||||||||||||||||||||||||||||||||
| PB | |||||
| SAM | |||||
| Insurance | |||||
| Total income | Total income + ceded fees | ||||
| +2% | +2% | ||||
| +20% | +19% | ||||
| +25% | +5% | ||||
| Total income | Fees ceded to the commercial network | ||||||||||
Note: Additionally, Wealth's total income included EUR 45 million in H1'24 and EUR 162 million in H1'25 corresponding to Portfolio Investments. Information excludes overlaps between Wealth businesses and also Insurance fees recorded in Consumer (EUR 432 million).
When considering these ceded fees along with our PAT, the total contribution to Group profit (PAT+Fees) reached EUR 1,783 million, up 15% year-on-year both in euros and in constant euros.
Our RoTE (post-AT1) in H1 2025 was 67.3%.
Compared to Q1 2025, attributable profit increased 3% in constant euros driven by solid revenue growth (backed by higher volumes and net fee income across businesses and the good performance of our Portfolio Investment business) and lower costs.
| Wealth. Underlying income statement | |||||||||||||||||||||||
| EUR million and % change | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Q2'25 | % | excl. FX | H1'25 | % | excl. FX | ||||||||||||||||||
| Total income | 1,012 | -1 | +2 | 2,032 | +11 | +14 | |||||||||||||||||
| Expenses | -354 | -5 | -2 | -726 | +6 | +9 | |||||||||||||||||
| Net operating income | 659 | +2 | +4 | 1,306 | +13 | +17 | |||||||||||||||||
| LLPs | -13 | +73 | +74 | -21 | +22 | +23 | |||||||||||||||||
| PBT | 635 | -1 | +1 | 1,274 | +15 | +19 | |||||||||||||||||
| Underlying attrib. profit | 477 | +1 | +3 | 948 | +19 | +24 | |||||||||||||||||
Detailed financial information in appendix. | |||||||||||||||||||||||
January - June 2025 | | 41 | ||||||
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| PAYMENTS | Underlying attributable profit | EUR 335 mn | |||||||||||||||
→ PagoNxt and Cards bring a unique position in the payments industry to the Group, covering both sides of the value chain of card payments (issuing and acquiring businesses) and account-to-account (A2A) payments. → Activity increased in both businesses, supported by global platform development, which enables further scale gains. In PagoNxt, Getnet's Total Payments Volume (TPV) rose 15% year-on-year in constant euros and the number of transactions improved 7%. In Cards, spending increased 9% year-on-year in constant euros and transactions rose 6%. → Attributable profit was EUR 335 million, up 47% year-on-year in constant euros excluding the charges in Q2 2024 after discontinuing platforms, driven by a good revenue performance boosted by higher activity. PagoNxt's EBITDA margin in H1 2025 improved 8.7 pp year-on-year to 28.8%. | |||||||||||||||||
PagoNxt and Cards strategy
In PagoNxt, we made progress in our strategic priorities:
•In Getnet, we focused on driving business growth, investing in innovation and developing commercial channels to expand our presence.
We remain focused on positioning ourselves as a leading player in Latin America, Spain and Portugal, where we have been working to expand omnichannel capabilities of our regional API. Additionally, we have already integrated several partners into our API in Mexico, Argentina and Uruguay.
In Mexico, Getnet is pioneer in regional payment security by offering the first certified card Point-to-Point Encryption (P2PE) solution, enabling safer and simpler processes.
We continued to maximize synergies with distribution channels. For example, in Chile, we launched the Santander en tu barrio programme, which enables access to bank services through Getnet PoS terminals.
•In Ebury, we remained focused on: i) growing customers by expanding our product offering and online capabilities, ii) expanding geographically with a focus on developing markets, iii) introducing tailored products to capture verticals such as mass payments, and iv) increasing collaboration revenue with other global businesses.
•PagoNxt Payments, we continued to develop our world-class solution for A2A payments processing, foreign exchange, fraud detection and value-added services, leveraging the best technology to build tailored solutions for our customers.
In Cards, we remained focused on the following priorities:
•Expand the business to continue growing and offering the best products to our customers.
We further implemented Cards Data Lab, which continued to expand its functionalities to improve credit card experience in the different phases of its life cycle.
We continued to expand our joint value proposition with Getnet (cards and PoS), available in Spain, Chile and Portugal, and we also launched it this quarter in Argentina.
As part of our strategy to promote the use of credit cards, we launched Pay Smarter in Spain, an initiative aimed at enhancing the security, control and benefits of our customers' credit card usage.
•Improve customer satisfaction, offering global solutions to facilitate the use of our cards, increase the security of our products and handle all transactions digitally, e.g. centralized management of tokenized payments, rolled out Click to Pay across some of our markets, incident management from digital channels and we launched enrolment in Google Pay from our app (introduced in Uruguay and Openbank Mexico this quarter).
•Implement our global card platform (Plard), which is managing more than 20 million debit cards in Brazil, and is already capturing new debit card sales to individuals in Chile. In Mexico, the new authorizer processed more than 170 million transactions per month and we are testing its implementation in Spain and the UK.
Business performance
Gross loans and advances to customers, excluding reverse repos and in constant euros, rose 18% driven mainly by higher volumes in Cards, with double-digit growth in most countries.
Payments has a very small amount of deposits, concentrated in PagoNxt. These deposits (excluding repos) amounted to EUR 1,043 million, +3% year-on-year in constant euros.
Results
Attributable profit was EUR 335 million in H1 2025, compared with a profit of EUR 25 million in H1 2024. This year-on-year comparison was favoured by having recorded charges in Q2 2024 related to the discontinuation of our merchant platform in Germany and Superdigital in Latin America. Excluding them, profit rose 47% year-on-year in constant euros, by line:
•Total income grew 17%, boosted by double-digit growth in net interest income and net fee income in both businesses driven by increased activity.
•Costs rose 2%, declining 1% in real terms, even after our investments in platforms in both Cards and PagoNxt.
•Net loan-loss provisions, mainly related to Cards, rose 29%, driven by strong loan growth, especially in South American countries, and the impact related to changes in models in Mexico and Brazil.
Compared to Q1 2025, profit grew 73% in constant euros due to a strong increase in revenue (Cards and PagoNxt), driven by NII growth and lower costs, with controlled provisions.
| Payments. Underlying income statement | |||||||||||||||||||||||
| EUR million and % change | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Q2'25 | % | excl. FX | H1'25 | % | excl. FX | ||||||||||||||||||
| Total income | 1,457 | +5 | +8 | 2,840 | +7 | +17 | |||||||||||||||||
| Expenses | -592 | -3 | -1 | -1,200 | -4 | +2 | |||||||||||||||||
| Net operating income | 865 | +11 | +16 | 1,641 | +16 | +32 | |||||||||||||||||
| LLPs | -479 | -3 | +1 | -970 | +14 | +29 | |||||||||||||||||
| PBT | 346 | +39 | +45 | 594 | +117 | +191 | |||||||||||||||||
| Underlying attrib. profit | 209 | +66 | +73 | 335 | — | — | |||||||||||||||||
Detailed financial information in appendix. | |||||||||||||||||||||||
42 | | January - June 2025 | ||||||
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PagoNxt
Business performance
In H1 2025, the total number of transactions in Getnet reached 5.1 billion, 7% higher year-on-year, mainly boosted by growth in Mexico, Chile and Europe, and the total payments volume (TPV) was EUR 113.0 billion, 15% more than in H1 2024 in constant euros.
In PagoNxt Payments, A2A payments activity on our Global Payments Hub platform continued ramping up. The migration of transactions from legacy systems to our new global platform is accelerating as planned. Of note was the migration of Pix transactions in Brazil.
| PagoNxt. Activity | ||
| TPV (Getnet) | ||
| EUR billion and changes in constant euros | ||
| +15% | ||||||||
Results
In H1 2025, attributable profit reached EUR 16 million, compared to a EUR 304 million loss in the same period of 2024 (EUR 61 million loss if we exclude the charges related to the discontinuation of our merchant platform in Germany and Superdigital in Latin America). In constant euros:
•Total income rose 19% year-on-year, with double-digit growth in net interest income and net fee income, driven by higher activity. There were good performances across business lines, especially in Ebury, Getnet in Chile, Mexico and Brazil, and in Payments Hub.
•Costs were flat, as lower costs in Getnet offset the investments in our global platforms.
EBITDA margin increased to 28.8% (20.1% in H1 2024).
Compared to Q1 2025, attributable profit rose to EUR 11 million from EUR 4 million in Q1 2025, +224% in constant euros, driven by a good revenue performance (increased commercial activity, especially in Getnet in Brazil, Europe and Chile, and in PagoNxt Payments), and a positive tax contribution, which more than offset a weaker performance in other gains (losses) and provisions.
| PagoNxt. Underlying income statement | ||||||||||||||||||||||||||
| EUR million and % change | ||||||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | |||||||||||||||||||||||
| Q2'25 | % | excl. FX | H1'25 | H1'24 | % | excl. FX | ||||||||||||||||||||
| Total income | 325 | +3 | +5 | 641 | 583 | +10 | +19 | |||||||||||||||||||
| Expenses | -290 | +1 | +3 | -576 | -601 | -4 | 0 | |||||||||||||||||||
| Net operating income | 35 | +13 | +25 | 65 | -18 | — | — | |||||||||||||||||||
| LLPs | -5 | -17 | -15 | -11 | -9 | +16 | +26 | |||||||||||||||||||
| PBT | 9 | -31 | -11 | 22 | -286 | — | — | |||||||||||||||||||
| Underlying attrib. profit | 11 | +150 | +224 | 16 | -304 | — | — | |||||||||||||||||||
Detailed financial information in appendix. | ||||||||||||||||||||||||||
Cards
Business performance
Our customers' card activity continued to increase across all types of payments. The number of transactions grew 6% year-on-year, reaching EUR 7.4 billion, and card spending in H1 2025 reached EUR 166.1 billion, a 9% year-on-year increase in constant euros. Credit card spending rose 15% year-on-year in constant euros, above debit card growth and in line with our strategy and value proposition.
Gross loans and advances to customers, excluding reverse repos and in constant euros, rose 16%, with double-digit growth in most of our countries.
| Cards. Activity | ||
| Spending | ||
| EUR billion and changes in constant euros | ||
| +9% | ||||||||
Results
In H1 2025, attributable profit amounted to EUR 319 million, 3% less than in the same period of 2024. In constant euros, profit rose 6%, by line:
•Total income increased 17% year-on-year, boosted by double-digit growth in net interest income (+20%) and net fee income (+12%), driven by higher credit card activity across all our countries.
•Costs rose 4%, well below revenue, despite our investment in platforms, as a result of our focus on structurally improving our operational efficiency.
•Net loan-loss provisions increased 29%, driven by strong portfolio growth, macro outlook and the impact from regulatory changes in models in Brazil and model updates in Mexico.
In H1 2025, RoTE (post-AT1) in Cards was 25.3%.
Compared to Q1 2025, attributable profit rose 68% in constant euros, driven by record levels in NII (mainly driven by higher yields in Brazil and lower funding costs in Mexico) and net fee income (particularly, Spain and Brazil) and lower costs in most of our countries, supported by platform-driven cost reductions.
| Cards. Underlying income statement | |||||||||||||||||||||||
| EUR million and % change | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Q2'25 | % | excl. FX | H1'25 | % | excl. FX | ||||||||||||||||||
| Total income | 1,132 | +6 | +9 | 2,199 | +6 | +17 | |||||||||||||||||
| Expenses | -302 | -6 | -4 | -624 | -3 | +4 | |||||||||||||||||
| Net operating income | 830 | +11 | +15 | 1,575 | +10 | +23 | |||||||||||||||||
| LLPs | -474 | -3 | +1 | -960 | +14 | +29 | |||||||||||||||||
| PBT | 337 | +43 | +48 | 572 | +2 | +13 | |||||||||||||||||
| Underlying attrib. profit | 198 | +63 | +68 | 319 | -3 | +6 | |||||||||||||||||
Detailed financial information in appendix. | |||||||||||||||||||||||
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| CORPORATE CENTRE | Underlying attributable profit | -EUR 713 mn | |||||||||||||||
→ The Corporate Centre continued to support the Group, defining, developing and coordinating the Group's strategy, as well as aiding the operating units, adding value. → It carries out the corporate oversight and control function, coordinates interactions with the Group's supervisors and regulators and also carries out functions related to financial and capital management. → Attributable loss of EUR 713 million in H1 2025, a 17% greater loss year-on-year, impacted by lower interest rates and higher net loan-loss provisions as we accelerate the Group's NPL ratio reductions, partially offset by lower losses on financial transactions driven by a smaller impact from currency hedges. | |||||||||||||||||
Strategy and functions
The Corporate Centre contributes value to the Group, through the following functions, among others:
•Global control frameworks and supervision.
•Fostering the exchange of best practices in cost management, which enables us to be one of the most efficient banks.
•Collaborating in the definition and execution of the global strategy, competitive development operations and projects that ensure we meet the business plan.
•Contributing to the launch of projects that will be developed by our global businesses, aimed at leveraging our worldwide presence to generate economies of scale.
•Ensuring open and constructive communication with shareholders, analysts, investors, bondholders, rating agencies and other market players.
•Adding value to our businesses, countries and divisions by encouraging the exchange of best practices, driving and managing innovative global initiatives and defining corporate policies to improve efficiency in our processes and service quality for our customers.
It also coordinates the relationship with European regulators and supervisors and carries out functions related to financial management and capital, as follows:
•Financial Management functions:
•Structural management of liquidity risk associated with funding the Group’s recurring activity and stakes of a financial nature. At the end of June 2025, the liquidity buffer was EUR 331 billion (provisional data).
This is done ensuring the diversification of funding sources (issuances and others), maintaining an adequate profile in volumes, maturities and costs.
The price of these transactions with other Group units is the market rate that includes all liquidity concepts (which the Group supports by immobilizing funds during the term of the transaction) and regulatory requirements (TLAC/MREL).
•We also actively manage interest rate risk to dampen the impact of interest rate changes on net interest income, conducted via high credit quality, very liquid and low capital consumption derivatives.
•Strategic management of exposure to exchange rates in equity and dynamic management of the FX hedges related to the units’ next twelve months results in euros. The net investments in equity currently hedged totalled EUR 17,158 million (mainly in the UK, Mexico and Chile) with different FX instruments (spots and forwards).
•Management of total capital and reserves: capital analysis, adequacy and management of the Group including: coordination with subsidiaries, monitoring profitability to maximize shareholder returns, setting solvency targets and capital contributions, and monitoring the capital ratio in both regulatory and economic terms, and efficient capital allocation to the units.
Results
In H1 2025, the attributable loss was EUR 713 million, a 17% greater loss than in H1 2024 (EUR 609 million loss), with the following performance by line:
•Net interest income declined EUR 132 million as lower interest rates impacted the balance sheet which has positive sensitivity to rate rises.
•Losses on financial transactions improved EUR 141 million, due to a lower impact from foreign currency hedges.
•Costs increased EUR 11 million due to higher IT expenses.
•Net loan-loss provisions increased year-on-year reflecting our strategy to accelerate NPL ratio reductions, improving the Group's credit quality.
•Other results and provisions were 7% lower year-on-year.
| Corporate Centre. Underlying income statement | |||||||||||||||||||||||
| EUR million and % change | |||||||||||||||||||||||
| Q2'25 | Q1'25 | % chg. | H1'25 | H1'24 | % chg. | ||||||||||||||||||
| Total income | -135 | -215 | -37 | -351 | -350 | 0 | |||||||||||||||||
| Net operating income | -232 | -303 | -23 | -535 | -524 | +2 | |||||||||||||||||
| PBT | -375 | -431 | -13 | -807 | -606 | +33 | |||||||||||||||||
| Underlying attrib. profit | -319 | -394 | -19 | -713 | -609 | +17 | |||||||||||||||||
Detailed financial information in appendix. | |||||||||||||||||||||||
44 | | January - June 2025 | ||||||
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SUSTAINABILITY
STRATEGY
| 1 | Help our customers in meeting their goals in their transition to a low-carbon economy while also managing climate-related risks and impacts. | |||||||
| 2 | Help our employees develop by promoting an inclusive culture and training and by providing fair working conditions. | |||||||
| 3 | Contribute to the economic, financial and social development of our communities, with a special focus on education, employability and entrepreneurship. | |||||||
| 4 | Be a trusted partner to our customers, with products and services that adapt to their needs, while applying responsible practices, supporting their financial inclusion and protecting their information. | |||||||
| 5 | Act responsibly through a strong culture, governance and conduct. | |||||||
| Green finance | Socially Responsible Investments (SRI) AuMs | Financial inclusion | ||||||||||||||||||
EUR 157.2 billion | EUR 111.1 billion | 5.3 million people | ||||||||||||||||||
Target 1: EUR 120 bn 2025 | Target: EUR 100 bn 2025 | Target: 5 mn 2025 | ||||||||||||||||||
| Target 2: EUR 220 bn 2030 | ||||||||||||||||||||
Note: targets were set in 2019 and 2021, before the publication of the European taxonomy in Q2 2023. Therefore, target definitions are not fully aligned with the taxonomy. For further information, see the 'Alternative performance measures' section in the appendix to this report. | ||||||||||||||||||||
KEY HIGHLIGHTS
→ We have already achieved our three 2023 Investor Day targets earlier than expected:
–In 2024, we exceeded our target of EUR 120 billion in green finance raised or facilitated 18 months early.
–In Q1 2025, we achieved our target of EUR 100 billion in Socially Responsible Investments (SRI) AuMs nine months earlier than expected. In Q2 2025, our SRI assets were EUR 111.1 billion, of which EUR 65.8 billion were in SAM and EUR 44.9 billion from third party funds in PB.
–This quarter, we exceeded our target to financially include 5 million people between 2023 and 2025, reaching a total of 5.3 million.
→ In Q2 2025, Santander maintained an active role in ESG issuances in DCM markets. We acted as joint bookrunner for a EUR 500 million bond issued by the Community of Madrid, the first sub-sovereign bond under the European green bond standard. In Poland, we served as joint bookrunner and sustainability structuring agent for Żabka Group’s inaugural sustainable bond, amounting to PLN 1 billion. Additionally, we partnered with the European Investment Bank to support the green transition of SMEs, female entrepreneurship and agriculture in Spain with EUR 370 million in financing.
→ We support the Sustainable Trade Finance Principles promoted by the International Chamber of Commerce (ICC), a key initiative aimed at directing investment toward responsible trade finance solutions.
→ In Spain, we became the first bank in the IBEX 35 to receive AENOR’s 360º Commitment to Accessibility certification, which recognizes our commitment to an inclusive and accessible service model for everyone, with different measures across physical, digital and operational channels.
→ We celebrated the 17th edition of our solidarity initiative Euros de tu Nómina, which distributed over EUR 650,000 among 17 NGOs this year. Since its launch, we have distributed EUR 6.7 million to 170 projects, benefiting almost 700,000 people.
→ We presented the Skills for the future report in Brussels, together with Roberta Metsola, president of the European Parliament. The report highlights the i of the role of lifelong learning in response to the disruption caused by AI.
→ We transformed over 1.2 million expired or damaged bank cards into sustainable urban furniture. The two most recent deliveries were to the Valencian municipalities affected by the flooding and Astorga, as one of the initiatives in the context of World Environment Day and in support of rural areas of Spain.
→ Expansión named us the Best National ESG Asset Manager and Best Solidarity Fund.
→ Brazil, Chile, Argentina and Portugal published their sustainability progress reports.
January - June 2025 | | 45 | ||||||
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CORPORATE GOVERNANCE
Share capital reduction of 1.76% as part of the shareholder remuneration charged against the 2024 results
On 2 June 2025, the executive committee reduced Banco Santander's share capital by EUR 133,583,475, by cancelling 267,166,950 own shares, representing 1.76% of its share capital, acquired in the second 2024 buyback programme, that ran between 6 February and 2 June 2025, as part of the shareholder remuneration charged against 2024 results. The share capital reduction, which was approved at the general shareholders’ meeting on 4 April 2025, was registered with the Commercial Registry of Cantabria on 6 June 2025. Consequently, Article 5 of the Bylaws has been amended to reflect that the Bank’s share capital is set at EUR 7,442,662,686, represented through 14,885,325,372 shares with a nominal value of EUR 0.50 per share, all of the same class and affording the same rights.
The eight share buyback programmes against results since 2021 and the related share capital reductions have resulted in the repurchase of 2,455,315,930 shares since November 2021, representing approximately 14.16% of the outstanding shares as of that date.
Changes in the Group’s Senior Management
On 24 June 2025, the board of directors of Banco Santander resolved to appoint Manuel Preto as the new Group Chief Accounting Officer, to succeed José Doncel. This appointment shall be effective from 31 July 2025 and is subject to regulatory approval. Mr Preto joined the Group in 1996 and has held various leadership roles in Santander Portugal and in the Group. Since 2019, he has been deputy CEO, CFO & Head of Strategy of Santander Portugal.
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A P P E N D I X
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Financial information
Group information
As a result of the Poland disposal and in accordance with IFRS 5 requirements, the business subject to the Poland disposal has been classified as 'non-current assets/liabilities held for sale' and the related results have been reported under 'discontinued operations'. Accordingly:
•In the Group’s consolidated balance sheet, the assets associated with the Poland disposal are classified under the 'non-current assets held for sale' line item and the related liabilities under 'liabilities associated with non-current assets held for sale'. This classification applies solely to the balance sheet as at 30 June 2025 and does not affect balance sheets for prior periods. In the statutory income statement, the results associated with the business subject to the Poland disposal are reported under a single line in the consolidated income statement — 'profit/(loss) after tax from discontinued operations' — for results corresponding to both 2025 and 2024. Consequently, the results from the Poland disposal perimeter are excluded line by line from the breakdown of continuing operations in both periods.
•However, in the underlying income statement, both at the Group and the primary and secondary segment levels (which are presented on an underlying basis only), the results from Poland continue to be reported line by line and disaggregated, as they were in previous quarterly disclosures given the fact that the management of Santander Polska remains unchanged until the Poland disposal is completed. This reporting approach is consistent with the information used internally in management reporting, as well as with other public Group disclosures. For the same reason, all management metrics included in this report have been calculated including Poland, i.e. maintaining the same perimeter that existed at the time of the announcement of the Poland disposal.
•In this appendix, results are presented on an underlying basis and the balance sheet figures, ratios and other metrics include Poland, as they were in previous quarterly disclosures, i.e. maintaining the same perimeter as prior to the announcement of the Poland disposal. However, if we were to exclude Poland, the Group's main management ratios would not be materially affected.
•For more information, see the ‘Alternative performance measures’ section in this appendix.
For Argentina and any grouping which includes it, the variations in constant euros have been calculated considering the Argentine peso exchange rate on the last working day for each of the periods presented. For more information, see the calculation method detailed in the ‘Alternative performance measures’ section in this appendix.
Underlying net fee income. Consolidated | ||||||||||||||||||||
| EUR million | ||||||||||||||||||||
| Q2'25 | Q1'25 | Change (%) | H1'25 | H1'24 | Change (%) | |||||||||||||||
| Fees from services | 1,908 | 1,872 | 1.9 | 3,780 | 3,610 | 4.7 | ||||||||||||||
| Wealth management and marketing of customer funds | 1,082 | 1,108 | (2.3) | 2,190 | 2,202 | (0.5) | ||||||||||||||
| Securities and custody | 325 | 389 | (16.5) | 714 | 665 | 7.4 | ||||||||||||||
| Net fee income | 3,315 | 3,369 | (1.6) | 6,684 | 6,477 | 3.2 | ||||||||||||||
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Underlying operating expenses. Consolidated | ||||||||||||||||||||
| EUR million | ||||||||||||||||||||
| Q2'25 | Q1'25 | Change (%) | H1'25 | H1'24 | Change (%) | |||||||||||||||
| Staff costs | 3,449 | 3,532 | (2.3) | 6,981 | 7,061 | (1.1) | ||||||||||||||
| Other general administrative expenses | 2,090 | 2,103 | (0.6) | 4,193 | 4,196 | (0.1) | ||||||||||||||
| Information technology | 556 | 618 | (10.0) | 1,174 | 1,296 | (9.4) | ||||||||||||||
| Communications | 93 | 91 | 2.2 | 184 | 202 | (8.9) | ||||||||||||||
| Advertising | 145 | 136 | 6.6 | 281 | 276 | 1.8 | ||||||||||||||
| Buildings and premises | 232 | 179 | 29.6 | 411 | 371 | 10.8 | ||||||||||||||
| Printed and office material | 24 | 19 | 26.3 | 43 | 43 | 0.0 | ||||||||||||||
| Taxes (other than tax on profits) | 114 | 166 | (31.3) | 280 | 268 | 4.5 | ||||||||||||||
| Other expenses | 926 | 894 | 3.6 | 1,820 | 1,740 | 4.6 | ||||||||||||||
| Administrative expenses | 5,539 | 5,635 | (1.7) | 11,174 | 11,257 | (0.7) | ||||||||||||||
| Depreciation and amortization | 837 | 854 | (2.0) | 1,691 | 1,656 | 2.1 | ||||||||||||||
| Operating expenses | 6,376 | 6,489 | (1.7) | 12,865 | 12,913 | (0.4) | ||||||||||||||
Operating means. Consolidated | ||||||||||||||||||||||||||
| Employees | Branches | |||||||||||||||||||||||||
| Jun-25 | Dec-24 | Change | Jun-25 | Jun-24 | Change | |||||||||||||||||||||
| Retail & Commercial Banking | 128,377 | 131,653 | (3,276) | Spain | 1,724 | 1,833 | (109) | |||||||||||||||||||
| Digital Consumer Bank | 31,344 | 29,903 | 1,441 | United Kingdom | 420 | 444 | (24) | |||||||||||||||||||
| Corporate & Investment Banking | 13,486 | 13,385 | 101 | Portugal | 373 | 374 | (1) | |||||||||||||||||||
| Wealth Management & Insurance | 7,668 | 7,707 | (39) | Poland | 361 | 373 | (12) | |||||||||||||||||||
| Payments | 21,643 | 22,280 | (637) | DCB Europe | 297 | 327 | (30) | |||||||||||||||||||
| Corporate Centre | 1,812 | 1,825 | (13) | US | 403 | 409 | (6) | |||||||||||||||||||
| Total Group | 204,330 | 206,753 | (2,423) | Mexico | 1,332 | 1,356 | (24) | |||||||||||||||||||
| Brazil | 1,888 | 2,446 | (558) | |||||||||||||||||||||||
| Chile | 231 | 242 | (11) | |||||||||||||||||||||||
Argentina1 | 405 | 406 | (1) | |||||||||||||||||||||||
Rest of the Group1 | 249 | 138 | 111 | |||||||||||||||||||||||
Total Group1 | 7,683 | 8,348 | (665) | |||||||||||||||||||||||
1. For June 2025 data and all previous periods, we have included the CartaSur points of sale and the banking service points in Argentina, while we have excluded operational locations that do not provide customer service in Colombia. | ||||||||||||||||||||||||||
Underlying net loan-loss provisions. Consolidated | ||||||||||||||||||||
| EUR million | ||||||||||||||||||||
| Q2'25 | Q1'25 | Change (%) | H1'25 | H1'24 | Change (%) | |||||||||||||||
| Non-performing loans | 3,496 | 3,531 | (1.0) | 7,027 | 7,046 | (0.3) | ||||||||||||||
| Country-risk | (1) | (1) | — | (2) | — | — | ||||||||||||||
| Recovery of written-off assets | (478) | (369) | 29.5 | (847) | (803) | 5.5 | ||||||||||||||
| Net loan-loss provisions | 3,017 | 3,161 | (4.6) | 6,178 | 6,243 | (1.0) | ||||||||||||||
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| Group information | |||||||||||||||||||||||||||||||||||
Loans and advances to customers. Consolidated | |||||||||||||||||
| EUR million | |||||||||||||||||
| Change | |||||||||||||||||
| Jun-25 | Jun-24 | Absolute | % | Dec-24 | |||||||||||||
| Commercial bills | 50,274 | 53,763 | (3,489) | (6.5) | 53,209 | ||||||||||||
| Secured loans | 549,790 | 558,338 | (8,548) | (1.5) | 557,463 | ||||||||||||
| Other term loans | 292,916 | 304,917 | (12,001) | (3.9) | 296,339 | ||||||||||||
| Finance leases | 40,724 | 39,725 | 999 | 2.5 | 40,120 | ||||||||||||
| Receivable on demand | 11,615 | 13,602 | (1,987) | (14.6) | 10,756 | ||||||||||||
| Credit cards receivable | 24,955 | 23,387 | 1,568 | 6.7 | 24,928 | ||||||||||||
| Impaired assets | 31,859 | 33,614 | (1,755) | (5.2) | 33,731 | ||||||||||||
| Gross loans and advances to customers (excl. reverse repos) | 1,002,133 | 1,027,346 | (25,213) | (2.5) | 1,016,546 | ||||||||||||
| Reverse repos | 68,589 | 60,875 | 7,714 | 12.7 | 59,648 | ||||||||||||
| Gross loans and advances to customers | 1,070,722 | 1,088,221 | (17,499) | (1.6) | 1,076,194 | ||||||||||||
| Loan-loss allowances | 21,771 | 22,625 | (854) | (3.8) | 22,125 | ||||||||||||
| Loans and advances to customers | 1,048,951 | 1,065,596 | (16,645) | (1.6) | 1,054,069 | ||||||||||||
Total funds. Consolidated | |||||||||||||||||
| EUR million | |||||||||||||||||
| Change | |||||||||||||||||
| Jun-25 | Jun-24 | Absolute | % | Dec-24 | |||||||||||||
| Demand deposits | 670,643 | 659,270 | 11,373 | 1.7 | 677,818 | ||||||||||||
| Time deposits | 291,816 | 293,608 | (1,792) | (0.6) | 299,801 | ||||||||||||
| Mutual funds | 244,813 | 218,207 | 26,606 | 12.2 | 233,722 | ||||||||||||
| Customer funds | 1,207,272 | 1,171,085 | 36,187 | 3.1 | 1,211,341 | ||||||||||||
| Pension funds | 15,631 | 15,091 | 540 | 3.6 | 15,646 | ||||||||||||
| Managed portfolios | 46,077 | 38,959 | 7,118 | 18.3 | 43,118 | ||||||||||||
| Repos | 97,749 | 84,768 | 12,981 | 15.3 | 78,317 | ||||||||||||
| Total funds | 1,366,729 | 1,309,903 | 56,826 | 4.3 | 1,348,422 | ||||||||||||
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| Group information | |||||||||||||||||||||||||||||||||||
Eligible capital (phased-in) 1. Consolidated | |||||||||||||||||
| EUR million | |||||||||||||||||
| Change | |||||||||||||||||
| Jun-25 | Jun-24 | Absolute | % | Dec-24 | |||||||||||||
| Capital stock and reserves | 131,218 | 126,179 | 5,039 | 4.0 | 124,263 | ||||||||||||
| Attributable profit | 6,833 | 6,059 | 774 | 12.8 | 12,574 | ||||||||||||
| Dividends | (1,708) | (1,515) | (193) | 12.8 | (3,144) | ||||||||||||
| Other retained earnings | (39,970) | (37,938) | (2,033) | 5.4 | (38,323) | ||||||||||||
| Minority interests | 8,179 | 7,554 | 625 | 8.3 | 8,479 | ||||||||||||
| Goodwill and intangible assets | (15,297) | (16,719) | 1,423 | (8.5) | (15,957) | ||||||||||||
| Other deductions | (8,004) | (5,646) | (2,358) | 41.8 | (8,092) | ||||||||||||
| CET1 | 81,250 | 77,974 | 3,276 | 4.2 | 79,800 | ||||||||||||
| Preferred shares and other eligible tier 1 | 9,578 | 8,834 | 744 | 8.4 | 10,371 | ||||||||||||
| Tier 1 | 90,828 | 86,808 | 4,020 | 4.6 | 90,170 | ||||||||||||
| Generic funds and eligible tier 2 instruments | 16,905 | 17,612 | (707) | (4.0) | 18,418 | ||||||||||||
| Eligible capital | 107,733 | 104,419 | 3,313 | 3.2 | 108,589 | ||||||||||||
| Risk-weighted assets | 625,750 | 624,831 | 919 | 0.1 | 624,503 | ||||||||||||
| CET1 capital ratio | 13.0 | 12.5 | 0.5 | 12.8 | |||||||||||||
| Tier 1 capital ratio | 14.5 | 13.9 | 0.6 | 14.4 | |||||||||||||
| Total capital ratio | 17.2 | 16.7 | 0.5 | 17.4 | |||||||||||||
1. Phased-in ratios are calculated in accordance with the transitory treatment of the CRR. For 2024 data, the transitional treatment of IFRS 9 also applies.
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| Information by segment | |||||||||||||||||||||||||||||||||||
Segments information
| RETAIL & COMMERCIAL BANKING | Q | ||||||||||||||||||||||
| EUR million | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Underlying income statement | Q2'25 | % | % excl. FX | H1'25 | % | % excl. FX | |||||||||||||||||
| Net interest income | 6,618 | (1.5) | 0.7 | 13,339 | (4.7) | 0.0 | |||||||||||||||||
| Net fee income | 1,187 | (1.9) | 0.5 | 2,397 | 0.3 | 7.6 | |||||||||||||||||
Gains (losses) on financial transactions 1 | 128 | (25.8) | (25.2) | 300 | (25.5) | (23.1) | |||||||||||||||||
| Other operating income | (117) | (43.6) | (42.3) | (326) | (36.3) | (34.5) | |||||||||||||||||
| Total income | 7,816 | (1.0) | 1.2 | 15,710 | (3.5) | 1.6 | |||||||||||||||||
| Administrative expenses and amortizations | (3,075) | (1.2) | 1.2 | (6,188) | (3.1) | 2.3 | |||||||||||||||||
| Net operating income | 4,740 | (0.9) | 1.2 | 9,522 | (3.8) | 1.2 | |||||||||||||||||
| Net loan-loss provisions | (1,399) | (2.2) | 0.9 | (2,830) | (8.3) | (0.1) | |||||||||||||||||
| Other gains (losses) and provisions | (697) | 31.9 | 34.4 | (1,225) | (21.7) | (19.2) | |||||||||||||||||
| Profit before tax | 2,645 | (6.3) | (4.8) | 5,468 | 4.3 | 8.1 | |||||||||||||||||
| Tax on profit | (704) | (7.1) | (6.0) | (1,462) | (11.5) | (8.5) | |||||||||||||||||
| Profit from continuing operations | 1,941 | (6.0) | (4.3) | 4,006 | 11.6 | 15.8 | |||||||||||||||||
| Net profit from discontinued operations | — | — | — | — | — | — | |||||||||||||||||
| Consolidated profit | 1,941 | (6.0) | (4.3) | 4,006 | 11.6 | 15.8 | |||||||||||||||||
| Non-controlling interests | (156) | (4.7) | (2.0) | (319) | 46.9 | 49.9 | |||||||||||||||||
| Underlying attributable profit to the parent | 1,785 | (6.1) | (4.5) | 3,687 | 9.3 | 13.5 | |||||||||||||||||
| Balance sheet and activity metrics | |||||||||||||||||||||||
| Loans and advances to customers | 600,069 | (1.9) | 0.1 | 600,069 | (3.6) | (1.2) | |||||||||||||||||
| Customer deposits | 653,757 | (0.3) | 1.3 | 653,757 | 1.4 | 3.6 | |||||||||||||||||
| Memorandum items: | |||||||||||||||||||||||
| Gross loans and advances to customers ² | 599,329 | (1.4) | 0.5 | 599,329 | (3.2) | (0.6) | |||||||||||||||||
| Customer funds | 748,119 | 0.5 | 2.1 | 748,119 | 2.5 | 5.0 | |||||||||||||||||
| Customer deposits ³ | 642,784 | (0.2) | 1.4 | 642,784 | 0.9 | 3.2 | |||||||||||||||||
| Mutual funds | 105,335 | 4.7 | 6.3 | 105,335 | 13.5 | 18.1 | |||||||||||||||||
| Risk-weighted assets | 295,981 | (3.1) | 295,981 | 1.5 | |||||||||||||||||||
| Ratios (%) and customers | |||||||||||||||||||||||
| RoTE | 17.5 | (0.8) | 17.9 | 0.2 | |||||||||||||||||||
| RoTE (post-AT1) | 16.8 | (0.8) | 17.2 | 0.2 | |||||||||||||||||||
| Efficiency ratio | 39.3 | (0.1) | 39.4 | 0.2 | |||||||||||||||||||
| NPL ratio | 3.06 | (0.06) | 3.06 | (0.08) | |||||||||||||||||||
| NPL coverage ratio | 59.8 | 0.8 | 59.8 | (1.7) | |||||||||||||||||||
| Number of employees | 128,377 | (1.9) | 128,377 | ||||||||||||||||||||
| Number of total customers (thousands) | 150,197 | 1.0 | 150,197 | 5.1 | |||||||||||||||||||
| Number of active customers (thousands) | 80,006 | 0.7 | 80,006 | 3.7 | |||||||||||||||||||
| 1. Includes exchange differences. | ||
| 2. Excluding reverse repos. | ||
| 3. Excluding repos. | ||
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| Information by segment | |||||||||||||||||||||||||||||||||||
| Retail Spain | Q | ||||||||||||||||
| EUR million | |||||||||||||||||
| / Q1'25 | / H1'24 | ||||||||||||||||
| Underlying income statement | Q2'25 | % | H1'25 | % | |||||||||||||
| Net interest income | 1,448 | (1.3) | 2,915 | (1.0) | |||||||||||||
| Net fee income | 269 | (7.6) | 560 | 0.1 | |||||||||||||
| Total income | 1,766 | (1.5) | 3,560 | (1.0) | |||||||||||||
| Administrative expenses and amortizations | (567) | (0.7) | (1,138) | 1.1 | |||||||||||||
| Net operating income | 1,200 | (1.9) | 2,423 | (2.0) | |||||||||||||
| Net loan-loss provisions | (244) | (16.3) | (535) | (6.2) | |||||||||||||
| Profit before tax | 837 | 3.3 | 1,647 | 24.8 | |||||||||||||
| Balance sheet and activity metrics | |||||||||||||||||
| Loans and advances to customers | 155,769 | 2.2 | 155,769 | (1.2) | |||||||||||||
| Customer deposits | 224,322 | 2.8 | 224,322 | 4.0 | |||||||||||||
| Memorandum items: | |||||||||||||||||
Gross loans and advances to customers 1 | 158,651 | 1.8 | 158,651 | (1.6) | |||||||||||||
| Customer funds | 271,204 | 2.7 | 271,204 | 5.5 | |||||||||||||
Customer deposits 2 | 224,322 | 2.8 | 224,322 | 4.0 | |||||||||||||
| Mutual funds | 46,882 | 2.5 | 46,882 | 13.5 | |||||||||||||
| 1. Excluding reverse repos. | ||
| 2. Excluding repos. | ||
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| Information by segment | |||||||||||||||||||||||||||||||||||
| Retail UK | Q | ||||||||||||||||||||||
| EUR million | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Underlying income statement | Q2'25 | % | % excl. FX | H1'25 | % | % excl. FX | |||||||||||||||||
| Net interest income | 1,174 | (4.1) | (2.5) | 2,398 | 6.7 | 5.2 | |||||||||||||||||
| Net fee income | 2 | (55.2) | (54.1) | 7 | — | — | |||||||||||||||||
| Total income | 1,149 | (3.4) | (1.9) | 2,339 | 5.2 | 3.7 | |||||||||||||||||
| Administrative expenses and amortizations | (628) | (1.6) | 0.0 | (1,266) | (2.1) | (3.5) | |||||||||||||||||
| Net operating income | 521 | (5.6) | (4.0) | 1,072 | 15.3 | 13.7 | |||||||||||||||||
| Net loan-loss provisions | (44) | 22.6 | 24.4 | (80) | 304.4 | 298.6 | |||||||||||||||||
| Profit before tax | 330 | (5.1) | (3.6) | 678 | (11.7) | (12.9) | |||||||||||||||||
| Balance sheet and activity metrics | |||||||||||||||||||||||
| Loans and advances to customers | 233,337 | (3.4) | (1.1) | 233,337 | (4.6) | (3.5) | |||||||||||||||||
| Customer deposits | 212,644 | (1.6) | 0.8 | 212,644 | (2.8) | (1.6) | |||||||||||||||||
| Memorandum items: | |||||||||||||||||||||||
Gross loans and advances to customers 1 | 222,590 | (2.2) | 0.1 | 222,590 | (3.0) | (1.9) | |||||||||||||||||
| Customer funds | 212,144 | (1.5) | 0.9 | 212,144 | (2.5) | (1.4) | |||||||||||||||||
Customer deposits 2 | 206,255 | (1.5) | 0.9 | 206,255 | (2.5) | (1.4) | |||||||||||||||||
| Mutual funds | 5,889 | (0.4) | 2.0 | 5,889 | (3.1) | (2.0) | |||||||||||||||||
| 1. Excluding reverse repos. | ||
| 2. Excluding repos. | ||
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| Information by segment | |||||||||||||||||||||||||||||||||||
| Retail Mexico | Q | ||||||||||||||||||||||
| EUR million | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Underlying income statement | Q2'25 | % | % excl. FX | H1'25 | % | % excl. FX | |||||||||||||||||
| Net interest income | 735 | (2.8) | 0.1 | 1,491 | (8.1) | 8.4 | |||||||||||||||||
| Net fee income | 177 | 3.0 | 6.0 | 348 | (6.5) | 10.2 | |||||||||||||||||
| Total income | 891 | (0.6) | 2.3 | 1,787 | (9.6) | 6.5 | |||||||||||||||||
| Administrative expenses and amortizations | (390) | (1.9) | 1.0 | (787) | (9.8) | 6.3 | |||||||||||||||||
| Net operating income | 501 | 0.5 | 3.4 | 1,000 | (9.5) | 6.7 | |||||||||||||||||
| Net loan-loss provisions | (150) | 11.6 | 14.7 | (285) | (31.4) | (19.2) | |||||||||||||||||
| Profit before tax | 335 | (2.3) | 0.6 | 677 | 1.2 | 19.3 | |||||||||||||||||
| Balance sheet and activity metrics | |||||||||||||||||||||||
| Loans and advances to customers | 30,426 | (0.3) | (0.1) | 30,426 | (7.2) | 5.2 | |||||||||||||||||
| Customer deposits | 37,699 | (2.2) | (2.0) | 37,699 | (4.2) | 8.5 | |||||||||||||||||
| Memorandum items: | |||||||||||||||||||||||
Gross loans and advances to customers 1 | 31,181 | (0.2) | 0.0 | 31,181 | (7.4) | 4.9 | |||||||||||||||||
| Customer funds | 49,072 | 1.0 | 1.2 | 49,072 | (4.9) | 7.7 | |||||||||||||||||
Customer deposits 2 | 35,018 | (0.3) | (0.1) | 35,018 | (9.8) | 2.1 | |||||||||||||||||
| Mutual funds | 14,053 | 4.3 | 4.6 | 14,053 | 10.0 | 24.6 | |||||||||||||||||
| 1. Excluding reverse repos. | ||
| 2. Excluding repos. | ||
January - June 2025 | | 55 | ||||||
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| Information by segment | |||||||||||||||||||||||||||||||||||
| Retail Brazil | Q | ||||||||||||||||||||||
| EUR million | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Underlying income statement | Q2'25 | % | % excl. FX | H1'25 | % | % excl. FX | |||||||||||||||||
| Net interest income | 1,503 | (2.0) | 2.3 | 3,036 | (13.2) | (0.7) | |||||||||||||||||
| Net fee income | 333 | (7.3) | (3.1) | 692 | (14.2) | (1.8) | |||||||||||||||||
| Total income | 1,779 | (5.3) | (1.1) | 3,657 | (14.9) | (2.6) | |||||||||||||||||
| Administrative expenses and amortizations | (724) | (4.9) | (0.6) | (1,485) | (9.6) | 3.5 | |||||||||||||||||
| Net operating income | 1,055 | (5.6) | (1.4) | 2,172 | (18.2) | (6.3) | |||||||||||||||||
| Net loan-loss provisions | (713) | (0.8) | 3.6 | (1,431) | (4.9) | 8.9 | |||||||||||||||||
| Profit before tax | 156 | (33.3) | (29.6) | 389 | (47.9) | (40.3) | |||||||||||||||||
| Balance sheet and activity metrics | |||||||||||||||||||||||
| Loans and advances to customers | 49,480 | (5.7) | (2.5) | 49,480 | (13.8) | (7.1) | |||||||||||||||||
| Customer deposits | 56,231 | (0.8) | 2.6 | 56,231 | 2.2 | 10.2 | |||||||||||||||||
| Memorandum items: | |||||||||||||||||||||||
Gross loans and advances to customers 1 | 53,185 | (4.7) | (1.5) | 53,185 | (12.7) | (6.0) | |||||||||||||||||
| Customer funds | 75,335 | (2.3) | 1.0 | 75,335 | 0.3 | 8.1 | |||||||||||||||||
Customer deposits 2 | 55,255 | (0.6) | 2.8 | 55,255 | (0.4) | 7.3 | |||||||||||||||||
| Mutual funds | 20,080 | (6.6) | (3.4) | 20,080 | 2.3 | 10.2 | |||||||||||||||||
| 1. Excluding reverse repos. | ||
| 2. Excluding repos. | ||
56 | | January - June 2025 | ||||||
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| Information by segment | |||||||||||||||||||||||||||||||||||
| DIGITAL CONSUMER BANK | Q | ||||||||||||||||||||||
| EUR million | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Underlying income statement | Q2'25 | % | % excl. FX | H1'25 | % | % excl. FX | |||||||||||||||||
| Net interest income | 2,747 | (0.3) | 3.6 | 5,504 | 2.6 | 4.6 | |||||||||||||||||
| Net fee income | 341 | 0.5 | 3.3 | 681 | (8.2) | (5.7) | |||||||||||||||||
Gains (losses) on financial transactions 1 | (18) | 209.2 | 217.6 | (23) | — | — | |||||||||||||||||
| Other operating income | 120 | (16.7) | (13.6) | 264 | (18.7) | (18.7) | |||||||||||||||||
| Total income | 3,191 | (1.3) | 2.4 | 6,425 | (0.4) | 1.6 | |||||||||||||||||
| Administrative expenses and amortizations | (1,308) | (3.6) | (0.1) | (2,664) | 1.8 | 3.1 | |||||||||||||||||
| Net operating income | 1,883 | 0.3 | 4.3 | 3,761 | (1.9) | 0.6 | |||||||||||||||||
| Net loan-loss provisions | (956) | (14.5) | (10.4) | (2,075) | (5.4) | (2.6) | |||||||||||||||||
| Other gains (losses) and provisions | (146) | 72.6 | 77.3 | (230) | (22.7) | (21.6) | |||||||||||||||||
| Profit before tax | 781 | 15.8 | 19.2 | 1,456 | 8.6 | 10.8 | |||||||||||||||||
| Tax on profit | (162) | 39.1 | 39.2 | (278) | 104.1 | 115.2 | |||||||||||||||||
| Profit from continuing operations | 620 | 11.0 | 15.0 | 1,178 | (2.2) | (0.6) | |||||||||||||||||
| Net profit from discontinued operations | — | — | — | — | — | — | |||||||||||||||||
| Consolidated profit | 620 | 11.0 | 15.0 | 1,178 | (2.2) | (0.6) | |||||||||||||||||
| Non-controlling interests | (69) | 3.9 | 4.3 | (135) | 0.1 | 1.0 | |||||||||||||||||
| Underlying attributable profit to the parent | 551 | 11.9 | 16.5 | 1,042 | (2.5) | (0.8) | |||||||||||||||||
| Balance sheet and activity metrics | |||||||||||||||||||||||
| Loans and advances to customers | 203,112 | (1.1) | 1.6 | 203,112 | (1.1) | 2.1 | |||||||||||||||||
| Customer deposits | 130,007 | (2.3) | 1.0 | 130,007 | 6.5 | 10.4 | |||||||||||||||||
| Memorandum items: | |||||||||||||||||||||||
| Gross loans and advances to customers ² | 211,115 | (1.2) | 1.6 | 211,115 | (1.0) | 2.4 | |||||||||||||||||
| Customer funds | 138,322 | (2.1) | 1.2 | 138,322 | 6.8 | 10.7 | |||||||||||||||||
| Customer deposits ³ | 129,967 | (2.3) | 1.0 | 129,967 | 6.5 | 10.4 | |||||||||||||||||
| Mutual funds | 8,356 | 1.4 | 5.0 | 8,356 | 11.5 | 16.1 | |||||||||||||||||
| Risk-weighted assets | 155,767 | (1.7) | 155,767 | 0.3 | |||||||||||||||||||
| Ratios (%) and customers | |||||||||||||||||||||||
| RoTE | 11.9 | 1.3 | 11.2 | (1.6) | |||||||||||||||||||
| RoTE (post-AT1) | 11.1 | 1.4 | 10.4 | (1.5) | |||||||||||||||||||
| Efficiency ratio | 41.0 | (1.0) | 41.5 | 0.9 | |||||||||||||||||||
| NPL ratio | 4.97 | (0.12) | 4.97 | 0.16 | |||||||||||||||||||
| NPL coverage ratio | 76.4 | 1.4 | 76.4 | 0.6 | |||||||||||||||||||
| Number of employees | 31,344 | (0.6) | 31,344 | ||||||||||||||||||||
| Number of total customers (thousands) | 25,871 | 0.6 | 25,871 | 3.5 | |||||||||||||||||||
| 1. Includes exchange differences. | ||
| 2. Excluding reverse repos. | ||
| 3. Excluding repos. | ||
January - June 2025 | | 57 | ||||||
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| Information by segment | |||||||||||||||||||||||||||||||||||
| DCB EUROPE | Q | ||||||||||||||||||||||
| EUR million | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Underlying income statement | Q2'25 | % | % excl. FX | H1'25 | % | % excl. FX | |||||||||||||||||
| Net interest income | 1,155 | 3.8 | 4.1 | 2,266 | 3.6 | 3.7 | |||||||||||||||||
| Net fee income | 185 | (1.5) | (1.3) | 372 | (17.4) | (17.4) | |||||||||||||||||
| Total income | 1,424 | 1.6 | 1.8 | 2,827 | (0.9) | (0.9) | |||||||||||||||||
| Administrative expenses and amortizations | (660) | (1.0) | (0.8) | (1,326) | 0.5 | 0.6 | |||||||||||||||||
| Net operating income | 765 | 3.9 | 4.2 | 1,500 | (2.2) | (2.2) | |||||||||||||||||
| Net loan-loss provisions | (284) | (15.5) | (15.2) | (619) | 6.0 | 5.9 | |||||||||||||||||
| Profit before tax | 371 | 3.9 | 4.2 | 727 | (3.9) | (3.7) | |||||||||||||||||
| Balance sheet and activity metrics | |||||||||||||||||||||||
| Loans and advances to customers | 139,300 | 2.1 | 2.7 | 139,300 | 2.7 | 3.2 | |||||||||||||||||
| Customer deposits | 84,005 | (0.1) | 0.5 | 84,005 | 9.2 | 9.7 | |||||||||||||||||
| Memorandum items: | |||||||||||||||||||||||
Gross loans and advances to customers 1 | 142,351 | 2.0 | 2.7 | 142,351 | 2.9 | 3.4 | |||||||||||||||||
| Customer funds | 88,774 | 0.1 | 0.6 | 88,774 | 9.5 | 9.9 | |||||||||||||||||
Customer deposits 2 | 84,005 | (0.1) | 0.5 | 84,005 | 9.2 | 9.7 | |||||||||||||||||
| Mutual funds | 4,769 | 2.3 | 2.3 | 4,769 | 14.9 | 14.9 | |||||||||||||||||
1. Excluding reverse repos.
2. Excluding repos.
58 | | January - June 2025 | ||||||
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| Information by segment | |||||||||||||||||||||||||||||||||||
| DCB US | Q | ||||||||||||||||||||||
| EUR million | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Underlying income statement | Q2'25 | % | % excl. FX | H1'25 | % | % excl. FX | |||||||||||||||||
| Net interest income | 1,129 | (7.5) | (0.3) | 2,350 | 1.2 | 2.2 | |||||||||||||||||
| Net fee income | 90 | 6.7 | 14.4 | 175 | 32.8 | 34.1 | |||||||||||||||||
| Total income | 1,270 | (6.8) | 0.5 | 2,631 | (0.9) | 0.1 | |||||||||||||||||
| Administrative expenses and amortizations | (520) | (9.3) | (2.1) | (1,094) | 0.2 | 1.2 | |||||||||||||||||
| Net operating income | 749 | (4.9) | 2.4 | 1,537 | (1.7) | (0.7) | |||||||||||||||||
| Net loan-loss provisions | (466) | (11.1) | (4.0) | (990) | (13.8) | (12.9) | |||||||||||||||||
| Profit before tax | 265 | 12.4 | 20.4 | 501 | 40.9 | 42.3 | |||||||||||||||||
| Balance sheet and activity metrics | |||||||||||||||||||||||
| Loans and advances to customers | 44,830 | (10.9) | (3.1) | 44,830 | (15.8) | (7.7) | |||||||||||||||||
| Customer deposits | 45,613 | (6.3) | 1.9 | 45,613 | 1.1 | 10.9 | |||||||||||||||||
| Memorandum items: | |||||||||||||||||||||||
Gross loans and advances to customers 1 | 48,389 | (10.6) | (2.8) | 48,389 | (15.4) | (7.2) | |||||||||||||||||
| Customer funds | 49,159 | (5.8) | 2.4 | 49,159 | 1.5 | 11.3 | |||||||||||||||||
Customer deposits 2 | 45,572 | (6.3) | 1.9 | 45,572 | 1.1 | 10.8 | |||||||||||||||||
| Mutual funds | 3,587 | 0.2 | 8.9 | 3,587 | 7.3 | 17.7 | |||||||||||||||||
| 1. Excluding reverse repos. | ||
| 2. Excluding repos. | ||
January - June 2025 | | 59 | ||||||
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| Information by segment | |||||||||||||||||||||||||||||||||||
| CORPORATE & INVESTMENT BANKING | Q | ||||||||||||||||||||||
| EUR million | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Underlying income statement | Q2'25 | % | % excl. FX | H1'25 | % | % excl. FX | |||||||||||||||||
| Net interest income | 1,013 | 6.4 | 10.0 | 1,966 | (2.4) | 3.7 | |||||||||||||||||
| Net fee income | 637 | (11.1) | (8.2) | 1,353 | 5.7 | 8.8 | |||||||||||||||||
Gains (losses) on financial transactions 1 | 252 | (52.0) | (49.8) | 778 | 11.5 | 14.0 | |||||||||||||||||
| Other operating income | 231 | 774.8 | 769.2 | 258 | 38.7 | 37.3 | |||||||||||||||||
| Total income | 2,134 | (3.9) | (0.8) | 4,354 | 4.2 | 8.6 | |||||||||||||||||
| Administrative expenses and amortizations | (950) | (0.2) | 3.4 | (1,903) | 5.1 | 8.4 | |||||||||||||||||
| Net operating income | 1,183 | (6.7) | (4.0) | 2,452 | 3.6 | 8.8 | |||||||||||||||||
| Net loan-loss provisions | (72) | 461.7 | 468.4 | (85) | (8.1) | (5.2) | |||||||||||||||||
| Other gains (losses) and provisions | (27) | 22.8 | 22.8 | (48) | (61.1) | (60.5) | |||||||||||||||||
| Profit before tax | 1,084 | (12.1) | (9.4) | 2,318 | 7.8 | 13.6 | |||||||||||||||||
| Tax on profit | (308) | (16.3) | (13.7) | (677) | 5.0 | 11.6 | |||||||||||||||||
| Profit from continuing operations | 776 | (10.3) | (7.6) | 1,641 | 9.0 | 14.5 | |||||||||||||||||
| Net profit from discontinued operations | — | — | — | — | — | — | |||||||||||||||||
| Consolidated profit | 776 | (10.3) | (7.6) | 1,641 | 9.0 | 14.5 | |||||||||||||||||
| Non-controlling interests | (48) | (19.4) | (15.9) | (107) | 5.7 | 10.9 | |||||||||||||||||
| Underlying attributable profit to the parent | 728 | (9.7) | (7.0) | 1,534 | 9.2 | 14.7 | |||||||||||||||||
| Balance sheet and activity metrics | |||||||||||||||||||||||
| Loans and advances to customers | 191,313 | (1.2) | 2.0 | 191,313 | 1.8 | 6.3 | |||||||||||||||||
| Customer deposits | 211,123 | (7.4) | (4.6) | 211,123 | 2.3 | 7.8 | |||||||||||||||||
| Memorandum items: | |||||||||||||||||||||||
| Gross loans and advances to customers ² | 135,231 | (4.5) | (1.5) | 135,231 | (5.9) | (1.9) | |||||||||||||||||
| Customer funds | 140,982 | (6.9) | (4.2) | 140,982 | (1.6) | 3.0 | |||||||||||||||||
| Customer deposits ³ | 125,259 | (6.5) | (3.9) | 125,259 | (4.0) | 0.2 | |||||||||||||||||
| Mutual funds | 15,723 | (9.4) | (6.7) | 15,723 | 23.1 | 32.7 | |||||||||||||||||
| Risk-weighted assets | 104,835 | (2.8) | 104,835 | (14.3) | |||||||||||||||||||
| Ratios (%) | |||||||||||||||||||||||
| RoTE | 20.7 | (1.7) | 21.6 | 2.7 | |||||||||||||||||||
| RoTE (post-AT1) | 20.0 | (1.7) | 20.8 | 2.7 | |||||||||||||||||||
| Efficiency ratio | 44.5 | 1.7 | 43.7 | 0.4 | |||||||||||||||||||
| NPL ratio | 0.71 | (0.03) | 0.71 | (0.32) | |||||||||||||||||||
| NPL coverage ratio | 45.1 | 5.8 | 45.1 | 9.1 | |||||||||||||||||||
| Number of employees | 13,486 | (0.4) | 13,486 | ||||||||||||||||||||
| 1. Includes exchange differences. | ||
| 2. Excluding reverse repos. | ||
| 3. Excluding repos. | ||
60 | | January - June 2025 | ||||||
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| Information by segment | |||||||||||||||||||||||||||||||||||
| WEALTH MANAGEMENT & INSURANCE | Q | ||||||||||||||||||||||
| EUR million | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Underlying income statement | Q2'25 | % | % excl. FX | H1'25 | % | % excl. FX | |||||||||||||||||
| Net interest income | 354 | (5.8) | (3.4) | 729 | (17.1) | (15.8) | |||||||||||||||||
| Net fee income | 423 | 1.0 | 3.6 | 842 | 16.8 | 20.2 | |||||||||||||||||
Gains (losses) on financial transactions 1 | 100 | 22.3 | 24.5 | 181 | 50.6 | 54.7 | |||||||||||||||||
| Other operating income | 136 | (5.5) | (3.8) | 279 | 138.8 | 174.8 | |||||||||||||||||
| Total income | 1,012 | (0.7) | 1.7 | 2,032 | 10.6 | 13.8 | |||||||||||||||||
| Administrative expenses and amortizations | (354) | (5.0) | (2.1) | (726) | 6.1 | 9.0 | |||||||||||||||||
| Net operating income | 659 | 1.7 | 3.8 | 1,306 | 13.2 | 16.7 | |||||||||||||||||
| Net loan-loss provisions | (13) | 72.8 | 74.1 | (21) | 21.5 | 23.3 | |||||||||||||||||
| Other gains (losses) and provisions | (10) | — | — | (11) | (62.6) | (62.4) | |||||||||||||||||
| Profit before tax | 635 | (0.6) | 1.5 | 1,274 | 15.2 | 18.8 | |||||||||||||||||
| Tax on profit | (135) | (5.2) | (3.3) | (277) | 1.4 | 3.7 | |||||||||||||||||
| Profit from continuing operations | 500 | 0.7 | 2.8 | 997 | 19.7 | 23.8 | |||||||||||||||||
| Net profit from discontinued operations | — | — | — | — | — | — | |||||||||||||||||
| Consolidated profit | 500 | 0.7 | 2.8 | 997 | 19.7 | 23.8 | |||||||||||||||||
| Non-controlling interests | (23) | (9.0) | (5.9) | (49) | 26.3 | 29.4 | |||||||||||||||||
| Underlying attributable profit to the parent | 477 | 1.2 | 3.3 | 948 | 19.3 | 23.5 | |||||||||||||||||
| Balance sheet and activity metrics | |||||||||||||||||||||||
| Loans and advances to customers | 25,048 | 1.8 | 5.3 | 25,048 | 8.9 | 13.4 | |||||||||||||||||
| Customer deposits | 62,437 | (0.7) | 1.3 | 62,437 | 1.2 | 3.5 | |||||||||||||||||
| Memorandum items: | |||||||||||||||||||||||
| Gross loans and advances to customers ² | 25,218 | 1.8 | 5.3 | 25,218 | 8.9 | 13.4 | |||||||||||||||||
| Customer funds | 176,965 | (1.4) | 0.5 | 176,965 | 6.6 | 9.8 | |||||||||||||||||
| Customer deposits ³ | 61,566 | (0.8) | 1.3 | 61,566 | 1.2 | 3.4 | |||||||||||||||||
| Mutual funds | 115,400 | (1.7) | 0.1 | 115,400 | 9.8 | 13.6 | |||||||||||||||||
| Risk-weighted assets | 16,887 | 4.1 | 16,887 | 47.7 | |||||||||||||||||||
| Assets under management | 514,009 | 0.5 | 2.5 | 514,009 | 7.6 | 11.4 | |||||||||||||||||
| Gross written premiums | 2,925 | 9.7 | 12.6 | 5,592 | (2.1) | 6.0 | |||||||||||||||||
| Ratios (%) and customers | |||||||||||||||||||||||
| RoTE | 67.3 | (1.5) | 68.1 | (7.1) | |||||||||||||||||||
| RoTE (post-AT1) | 66.6 | (1.4) | 67.3 | (7.0) | |||||||||||||||||||
| Efficiency ratio | 34.9 | (1.6) | 35.7 | (1.5) | |||||||||||||||||||
| NPL ratio | 0.96 | (0.01) | 0.96 | (0.12) | |||||||||||||||||||
| NPL coverage ratio | 70.3 | 3.9 | 70.3 | 11.2 | |||||||||||||||||||
| Number of employees | 7,668 | (0.3) | 7,668 | ||||||||||||||||||||
| Number of Private Banking customers (thousands) | 305 | 1.3 | 305 | 7.9 | |||||||||||||||||||
| 1. Includes exchange differences. | ||
| 2. Excluding reverse repos. | ||
| 3. Excluding repos. | ||
January - June 2025 | | 61 | ||||||
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| Information by segment | |||||||||||||||||||||||||||||||||||
| PAYMENTS | Q | ||||||||||||||||||||||
| EUR million | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Underlying income statement | Q2'25 | % | % excl. FX | H1'25 | % | % excl. FX | |||||||||||||||||
| Net interest income | 726 | 5.9 | 9.4 | 1,411 | 8.4 | 21.6 | |||||||||||||||||
| Net fee income | 734 | 6.0 | 8.8 | 1,428 | 6.2 | 15.1 | |||||||||||||||||
Gains (losses) on financial transactions 1 | (18) | 277.7 | 272.3 | (22) | — | — | |||||||||||||||||
| Other operating income | 14 | 48.3 | 42.2 | 24 | 171.6 | 90.4 | |||||||||||||||||
| Total income | 1,457 | 5.3 | 8.4 | 2,840 | 6.8 | 17.4 | |||||||||||||||||
| Administrative expenses and amortizations | (592) | (2.6) | (0.8) | (1,200) | (3.6) | 2.1 | |||||||||||||||||
| Net operating income | 865 | 11.5 | 15.6 | 1,641 | 16.0 | 32.0 | |||||||||||||||||
| Net loan-loss provisions | (479) | (2.7) | 0.9 | (970) | 13.9 | 29.0 | |||||||||||||||||
| Other gains (losses) and provisions | (40) | 12.3 | 14.9 | (76) | (73.6) | (73.4) | |||||||||||||||||
| Profit before tax | 346 | 39.4 | 45.1 | 594 | 116.8 | 191.0 | |||||||||||||||||
| Tax on profit | (116) | 18.6 | 23.5 | (214) | 2.8 | 17.4 | |||||||||||||||||
| Profit from continuing operations | 230 | 52.9 | 59.1 | 380 | 475.6 | — | |||||||||||||||||
| Net profit from discontinued operations | — | — | — | — | — | — | |||||||||||||||||
| Consolidated profit | 230 | 52.9 | 59.1 | 380 | 475.6 | — | |||||||||||||||||
| Non-controlling interests | (21) | (13.9) | (9.7) | (46) | 12.0 | 20.8 | |||||||||||||||||
| Underlying attributable profit to the parent | 209 | 65.9 | 72.5 | 335 | — | — | |||||||||||||||||
| Balance sheet and activity metrics | |||||||||||||||||||||||
| Loans and advances to customers | 23,358 | 0.2 | 2.6 | 23,358 | 11.5 | 18.8 | |||||||||||||||||
| Customer deposits | 1,043 | (7.6) | (7.6) | 1,043 | 3.5 | 3.5 | |||||||||||||||||
| Memorandum items: | |||||||||||||||||||||||
| Gross loans and advances to customers ² | 25,041 | (0.6) | 1.8 | 25,041 | 10.6 | 18.0 | |||||||||||||||||
| Customer funds | 1,043 | (7.6) | (7.6) | 1,043 | 3.5 | 3.5 | |||||||||||||||||
| Customer deposits ³ | 1,043 | (7.6) | (7.6) | 1,043 | 3.5 | 3.5 | |||||||||||||||||
| Mutual funds | — | — | — | — | — | — | |||||||||||||||||
| Risk-weighted assets | 23,068 | 0.5 | 23,068 | 12.0 | |||||||||||||||||||
| Ratios (%) | |||||||||||||||||||||||
| RoTE | 28.9 | 11.5 | 23.2 | 21.3 | |||||||||||||||||||
| RoTE (post-AT1) | 28.2 | 11.5 | 22.4 | 21.3 | |||||||||||||||||||
| NPL ratio | 5.11 | (0.77) | 5.11 | (0.05) | |||||||||||||||||||
| NPL coverage ratio | 131.2 | 5.2 | 131.2 | (13.1) | |||||||||||||||||||
| Number of employees | 21,643 | (0.3) | 0.0 | ||||||||||||||||||||
| 1. Includes exchange differences. | ||
| 2. Excluding reverse repos. | ||
| 3. Excluding repos. | ||
62 | | January - June 2025 | ||||||
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| Information by segment | |||||||||||||||||||||||||||||||||||
| PagoNxt | Q | |||||||||||||||||||||||||
| EUR million | ||||||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | |||||||||||||||||||||||
| Underlying income statement | Q2'25 | % | % excl. FX | H1'25 | H1'24 | % | % excl. FX | |||||||||||||||||||
| Net interest income | 42 | 10.8 | 14.5 | 80 | 62 | 29.4 | 45.1 | |||||||||||||||||||
| Net fee income | 265 | 8.4 | 11.0 | 510 | 456 | 11.7 | 21.7 | |||||||||||||||||||
Gains (losses) on financial transactions 1 | (21) | 192.6 | 194.0 | (28) | 0 | — | — | |||||||||||||||||||
| Other operating income | 38 | (6.8) | (6.8) | 80 | 64 | 23.4 | 24.9 | |||||||||||||||||||
| Total income | 325 | 2.6 | 4.9 | 641 | 583 | 9.9 | 19.2 | |||||||||||||||||||
| Administrative expenses and amortizations | (290) | 1.4 | 2.8 | (576) | (601) | (4.2) | 0.1 | |||||||||||||||||||
| Net operating income | 35 | 13.4 | 25.2 | 65 | (18) | — | — | |||||||||||||||||||
| Net loan-loss provisions | (5) | (16.7) | (15.3) | (11) | (9) | 16.4 | 25.8 | |||||||||||||||||||
| Other gains (losses) and provisions | (21) | 75.2 | 80.1 | (33) | (259) | (87.2) | (87.2) | |||||||||||||||||||
| Profit before tax | 9 | (30.8) | (10.8) | 22 | (286) | — | — | |||||||||||||||||||
| Tax on profit | 3 | — | — | (1) | (16) | (91.2) | (86.3) | |||||||||||||||||||
| Profit from continuing operations | 11 | 28.0 | 53.2 | 20 | (302) | — | — | |||||||||||||||||||
| Net profit from discontinued operations | — | — | — | — | — | — | — | |||||||||||||||||||
| Consolidated profit | 11 | 28.0 | 53.2 | 20 | (302) | — | — | |||||||||||||||||||
| Non-controlling interests | 0 | (95.3) | (92.8) | (5) | (3) | 68.0 | 92.9 | |||||||||||||||||||
| Underlying attributable profit to the parent | 11 | 149.9 | 223.8 | 16 | (304) | — | — | |||||||||||||||||||
| Balance sheet and activity metrics | ||||||||||||||||||||||||||
| Loans and advances to customers | 1,229 | (6.6) | (4.9) | 1,229 | 733 | 67.7 | 78.7 | |||||||||||||||||||
| Customer deposits | 999 | (8.4) | (8.4) | 999 | 994 | 0.5 | 0.5 | |||||||||||||||||||
| Memorandum items: | ||||||||||||||||||||||||||
| Gross loans and advances to customers ² | 1,249 | (6.6) | (5.0) | 1,249 | 755 | 65.4 | 75.9 | |||||||||||||||||||
| Customer funds | 999 | (8.4) | (8.4) | 999 | 994 | 0.5 | 0.5 | |||||||||||||||||||
| Customer deposits ³ | 999 | (8.4) | (8.4) | 999 | 994 | 0.5 | 0.5 | |||||||||||||||||||
| Mutual funds | — | — | — | — | — | — | — | |||||||||||||||||||
| Risk-weighted assets | 6,189 | 2.1 | 6,189 | 4,246 | 45.8 | |||||||||||||||||||||
| Total transactions (Getnet, million) | 2,596 | 3.6 | 5,102 | 4,759 | 7.2 | |||||||||||||||||||||
| Total payments volume (Getnet) | 57,261 | 2.7 | 5.5 | 113,037 | 107,647 | 5.0 | 15.5 | |||||||||||||||||||
| Ratios (%) | ||||||||||||||||||||||||||
| EBITDA margin | 29.0 | 0.3 | 28.8 | 20.1 | 8.7 | |||||||||||||||||||||
| Efficiency ratio | 89.3 | (1.0) | 89.8 | 103.0 | (13.2) | |||||||||||||||||||||
| 1. Includes exchange differences. | ||
| 2. Excluding reverse repos. | ||
| 3. Excluding repos. | ||
January - June 2025 | | 63 | ||||||
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| Information by segment | |||||||||||||||||||||||||||||||||||
| Cards | Q | ||||||||||||||||||||||
| EUR million | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Underlying income statement | Q2'25 | % | % excl. FX | H1'25 | % | % excl. FX | |||||||||||||||||
| Net interest income | 683 | 5.6 | 9.1 | 1,330 | 7.3 | 20.4 | |||||||||||||||||
| Net fee income | 469 | 4.6 | 7.5 | 918 | 3.4 | 11.7 | |||||||||||||||||
Gains (losses) on financial transactions 1 | 3 | 34.4 | 42.0 | 6 | 60.7 | 47.1 | |||||||||||||||||
| Other operating income | (24) | (23.8) | (22.4) | (55) | (0.3) | 8.7 | |||||||||||||||||
| Total income | 1,132 | 6.1 | 9.4 | 2,199 | 6.0 | 16.9 | |||||||||||||||||
| Administrative expenses and amortizations | (302) | (6.1) | (4.0) | (624) | (3.0) | 3.9 | |||||||||||||||||
| Net operating income | 830 | 11.4 | 15.3 | 1,575 | 10.0 | 23.1 | |||||||||||||||||
| Net loan-loss provisions | (474) | (2.5) | 1.1 | (960) | 13.8 | 29.1 | |||||||||||||||||
| Other gains (losses) and provisions | (19) | (19.3) | (17.6) | (43) | 47.3 | 49.2 | |||||||||||||||||
| Profit before tax | 337 | 43.2 | 47.8 | 572 | 2.3 | 12.7 | |||||||||||||||||
| Tax on profit | (119) | 26.3 | 30.4 | (212) | 10.6 | 23.6 | |||||||||||||||||
| Profit from continuing operations | 219 | 54.5 | 59.4 | 360 | (2.1) | 7.2 | |||||||||||||||||
| Net profit from discontinued operations | — | — | — | — | — | — | |||||||||||||||||
| Consolidated profit | 219 | 54.5 | 59.4 | 360 | (2.1) | 7.2 | |||||||||||||||||
| Non-controlling interests | (21) | 4.0 | 8.6 | (41) | 8.0 | 15.9 | |||||||||||||||||
| Underlying attributable profit to the parent | 198 | 62.8 | 67.8 | 319 | (3.3) | 6.2 | |||||||||||||||||
| Balance sheet and activity metrics | |||||||||||||||||||||||
| Loans and advances to customers | 22,129 | 0.6 | 3.0 | 22,129 | 9.5 | 16.6 | |||||||||||||||||
| Customer deposits | 45 | 14.9 | 14.9 | 45 | 211.0 | 211.0 | |||||||||||||||||
| Memorandum items: | |||||||||||||||||||||||
| Gross loans and advances to customers ² | 23,792 | (0.2) | 2.2 | 23,792 | 8.8 | 16.0 | |||||||||||||||||
| Customer funds | 45 | 14.9 | 14.9 | 45 | 211.0 | 211.0 | |||||||||||||||||
| Customer deposits ³ | 45 | 14.9 | 14.9 | 45 | 211.0 | 211.0 | |||||||||||||||||
| Mutual funds | — | — | — | — | — | — | |||||||||||||||||
| Risk-weighted assets | 16,879 | 0.0 | 16,879 | 3.3 | |||||||||||||||||||
Number of cards (million)4 | 106 | (0.2) | 106 | 1.6 | |||||||||||||||||||
| Ratios (%) | |||||||||||||||||||||||
| RoTE | 32.0 | 12.1 | 26.0 | (1.9) | |||||||||||||||||||
| RoTE (post-AT1) | 31.3 | 12.1 | 25.3 | (1.9) | |||||||||||||||||||
| Efficiency ratio | 26.7 | (3.5) | 28.4 | (2.6) | |||||||||||||||||||
| NPL ratio | 5.22 | (0.89) | 5.22 | 0.02 | |||||||||||||||||||
| NPL coverage ratio | 133.6 | 6.9 | 133.6 | (12.6) | |||||||||||||||||||
| 1. Includes exchange differences. | ||
| 2. Excluding reverse repos. | ||
| 3. Excluding repos. | ||
| 4. Total number of Cards in the Group, including those managed within Consumer's perimeter. | ||
64 | | January - June 2025 | ||||||
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| Information by segment | |||||||||||||||||||||||||||||||||||
| CORPORATE CENTRE | Q | ||||||||||||||||||||||
| EUR million | |||||||||||||||||||||||
| / Q1'25 | / H1'24 | ||||||||||||||||||||||
| Underlying income statement | Q2'25 | Q1'25 | % | H1'25 | H1'24 | % | |||||||||||||||||
| Net interest income | (120) | (112) | 7.7 | (232) | (100) | 132.9 | |||||||||||||||||
| Net fee income | (7) | (9) | (20.8) | (16) | 1 | — | |||||||||||||||||
Gains (losses) on financial transactions 1 | (53) | (91) | (42.1) | (143) | (284) | (49.6) | |||||||||||||||||
| Other operating income | 45 | (4) | — | 41 | 33 | 23.5 | |||||||||||||||||
| Total income | (135) | (215) | (37.2) | (351) | (350) | 0.1 | |||||||||||||||||
| Administrative expenses and amortizations | (97) | (87) | 11.1 | (184) | (174) | 6.2 | |||||||||||||||||
| Net operating income | (232) | (303) | (23.2) | (535) | (524) | 2.1 | |||||||||||||||||
| Net loan-loss provisions | (98) | (99) | (0.6) | (197) | (2) | — | |||||||||||||||||
| Other gains (losses) and provisions | (45) | (30) | 50.3 | (74) | (80) | (7.1) | |||||||||||||||||
| Profit before tax | (375) | (431) | (13.0) | (807) | (606) | 33.1 | |||||||||||||||||
| Tax on profit | 56 | 37 | 51.1 | 93 | (3) | — | |||||||||||||||||
| Profit from continuing operations | (319) | (394) | (19.0) | (713) | (609) | 17.1 | |||||||||||||||||
| Net profit from discontinued operations | — | — | — | — | — | — | |||||||||||||||||
| Consolidated profit | (319) | (394) | (19.0) | (713) | (609) | 17.1 | |||||||||||||||||
| Non-controlling interests | 0 | 0 | — | 0 | 0 | — | |||||||||||||||||
| Underlying attributable profit to the parent | (319) | (394) | (19.0) | (713) | (609) | 17.1 | |||||||||||||||||
| Balance sheet | |||||||||||||||||||||||
| Loans and advances to customers | 6,052 | 5,845 | 3.5 | 6,052 | 5,629 | 7.5 | |||||||||||||||||
| Cash, central banks and credit institutions | 94,853 | 105,926 | (10.5) | 94,853 | 96,925 | (2.1) | |||||||||||||||||
| Debt instruments | 10,556 | 11,158 | (5.4) | 10,556 | 9,622 | 9.7 | |||||||||||||||||
| Other financial assets | 1,784 | 1,609 | 10.8 | 1,784 | 934 | 91.0 | |||||||||||||||||
| Other asset accounts | 118,888 | 124,957 | (4.9) | 118,888 | 124,659 | (4.6) | |||||||||||||||||
| Total assets | 232,133 | 249,496 | (7.0) | 232,133 | 237,769 | (2.4) | |||||||||||||||||
| Customer deposits | 1,841 | 1,341 | 37.3 | 1,841 | 1,729 | 6.4 | |||||||||||||||||
| Central banks and credit institutions | 17,048 | 27,844 | (38.8) | 17,048 | 21,463 | (20.6) | |||||||||||||||||
| Marketable debt securities | 109,719 | 111,631 | (1.7) | 109,719 | 110,786 | (1.0) | |||||||||||||||||
| Other financial liabilities | 14 | 145 | (90.4) | 14 | 1,748 | (99.2) | |||||||||||||||||
| Other liabilities accounts | 7,338 | 7,056 | 4.0 | 7,338 | 7,762 | (5.5) | |||||||||||||||||
| Total liabilities | 135,960 | 148,017 | (8.1) | 135,960 | 143,488 | (5.2) | |||||||||||||||||
| Total equity | 96,173 | 101,479 | (5.2) | 96,173 | 94,281 | 2.0 | |||||||||||||||||
| Memorandum items: | |||||||||||||||||||||||
Gross loans and advances to customers 2 | 6,199 | 5,932 | 4.5 | 6,199 | 5,726 | 8.3 | |||||||||||||||||
| Customer funds | 1,841 | 1,341 | 37.3 | 1,841 | 1,594 | 15.4 | |||||||||||||||||
Customer deposits 3 | 1,841 | 1,341 | 37.3 | 1,841 | 1,594 | 15.4 | |||||||||||||||||
| Mutual funds | — | — | — | — | — | — | |||||||||||||||||
| Resources | |||||||||||||||||||||||
| Number of employees | 1,812 | 1,793 | 1.1 | 1,812 | |||||||||||||||||||
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
January - June 2025 | | 65 | ||||||
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| Information by segment | |||||||||||||||||||||||||||||||||||
| Spain | Q | ||||||||||||||||
| EUR million | |||||||||||||||||
| / Q1'25 | / H1'24 | ||||||||||||||||
| Underlying income statement | Q2'25 | % | H1'25 | % | |||||||||||||
| Net interest income | 1,806 | 1.5 | 3,585 | (1.9) | |||||||||||||
| Net fee income | 735 | (4.1) | 1,503 | 1.3 | |||||||||||||
Gains (losses) on financial transactions 1 | 124 | (72.4) | 572 | 22.2 | |||||||||||||
| Other operating income | 372 | 174.2 | 507 | 10.9 | |||||||||||||
| Total income | 3,036 | (3.0) | 6,167 | 1.7 | |||||||||||||
| Administrative expenses and amortizations | (1,051) | 0.2 | (2,099) | 1.7 | |||||||||||||
| Net operating income | 1,986 | (4.6) | 4,067 | 1.7 | |||||||||||||
| Net loan-loss provisions | (295) | (2.6) | (599) | (9.0) | |||||||||||||
| Other gains (losses) and provisions | (103) | (22.8) | (236) | (64.3) | |||||||||||||
| Profit before tax | 1,588 | (3.5) | 3,232 | 20.6 | |||||||||||||
| Tax on profit | (476) | (4.3) | (974) | 5.3 | |||||||||||||
| Profit from continuing operations | 1,111 | (3.1) | 2,258 | 28.6 | |||||||||||||
| Net profit from discontinued operations | — | — | — | — | |||||||||||||
| Consolidated profit | 1,111 | (3.1) | 2,258 | 28.6 | |||||||||||||
| Non-controlling interests | 0 | (55.5) | 0 | 564.1 | |||||||||||||
| Underlying attributable profit to the parent | 1,111 | (3.1) | 2,258 | 28.6 | |||||||||||||
| Balance sheet | |||||||||||||||||
| Loans and advances to customers | 264,034 | 3.9 | 264,034 | 4.9 | |||||||||||||
| Cash, central banks and credit institutions | 99,076 | 4.0 | 99,076 | 19.6 | |||||||||||||
| Debt instruments | 95,952 | (8.8) | 95,952 | 24.3 | |||||||||||||
| Other financial assets | 48,665 | 7.2 | 48,665 | 6.0 | |||||||||||||
| Other asset accounts | 16,435 | (2.9) | 16,435 | (3.8) | |||||||||||||
| Total assets | 524,161 | 1.4 | 524,161 | 10.4 | |||||||||||||
| Customer deposits | 346,323 | 0.7 | 346,323 | 9.9 | |||||||||||||
| Central banks and credit institutions | 49,834 | 9.9 | 49,834 | 23.4 | |||||||||||||
| Marketable debt securities | 26,379 | 0.1 | 26,379 | (6.5) | |||||||||||||
| Other financial liabilities | 62,762 | (0.1) | 62,762 | 22.2 | |||||||||||||
| Other liabilities accounts | 21,544 | 4.0 | 21,544 | (1.5) | |||||||||||||
| Total liabilities | 506,842 | 1.6 | 506,842 | 10.9 | |||||||||||||
| Total equity | 17,319 | (3.2) | 17,319 | (2.5) | |||||||||||||
| Memorandum items: | |||||||||||||||||
Gross loans and advances to customers 2 | 232,478 | 1.5 | 232,478 | (0.8) | |||||||||||||
| Customer funds | 404,967 | 2.3 | 404,967 | 5.9 | |||||||||||||
Customer deposits 3 | 306,005 | 2.3 | 306,005 | 3.2 | |||||||||||||
| Mutual funds | 98,961 | 2.3 | 98,961 | 15.4 | |||||||||||||
| Ratios (%), operating means and customers | |||||||||||||||||
| RoTE | 26.0 | (0.4) | 26.1 | 5.7 | |||||||||||||
| RoTE (post-AT1) | 25.2 | (0.3) | 25.3 | 5.7 | |||||||||||||
| Efficiency ratio | 34.6 | 1.1 | 34.0 | — | |||||||||||||
| NPL ratio | 2.15 | (0.41) | 2.15 | (0.76) | |||||||||||||
| NPL coverage ratio | 53.2 | 0.4 | 53.2 | 3.1 | |||||||||||||
| Number of branches | 1,724 | (3.8) | 1,724 | (5.9) | |||||||||||||
| Number of total customers (thousands) | 15,380 | 0.5 | 15,380 | 1.7 | |||||||||||||
| Number of active customers (thousands) | 9,040 | 1.1 | 9,040 | 4.8 | |||||||||||||
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
66 | | January - June 2025 | ||||||
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| Information by segment | |||||||||||||||||||||||||||||||||||
| United Kingdom | |||||||||||||||||||||||
| EUR million | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Underlying income statement | Q2'25 | % | % excl. FX | H1'25 | % | % excl. FX | |||||||||||||||||
| Net interest income | 1,244 | (4.2) | (2.6) | 2,543 | 6.8 | 5.2 | |||||||||||||||||
| Net fee income | 84 | 2.2 | 3.8 | 166 | 16.8 | 15.1 | |||||||||||||||||
Gains (losses) on financial transactions 1 | (27) | (33.5) | (32.2) | (68) | 785.7 | 773.0 | |||||||||||||||||
| Other operating income | 0 | (50.3) | (49.1) | 1 | 108.8 | 105.8 | |||||||||||||||||
| Total income | 1,302 | (2.9) | (1.3) | 2,642 | 5.0 | 3.5 | |||||||||||||||||
| Administrative expenses and amortizations | (707) | (1.7) | (0.2) | (1,427) | (1.7) | (3.1) | |||||||||||||||||
| Net operating income | 594 | (4.2) | (2.7) | 1,215 | 14.1 | 12.4 | |||||||||||||||||
| Net loan-loss provisions | (60) | 14.6 | 16.3 | (113) | 83.6 | 81.0 | |||||||||||||||||
| Other gains (losses) and provisions | (154) | (17.6) | (16.1) | (340) | 119.8 | 116.7 | |||||||||||||||||
| Profit before tax | 380 | (0.3) | 1.3 | 762 | (10.2) | (11.5) | |||||||||||||||||
| Tax on profit | (105) | 8.0 | 9.6 | (202) | (7.8) | (9.1) | |||||||||||||||||
| Profit from continuing operations | 276 | (3.1) | (1.6) | 560 | (11.1) | (12.3) | |||||||||||||||||
| Net profit from discontinued operations | — | — | — | — | — | — | |||||||||||||||||
| Consolidated profit | 276 | (3.1) | (1.6) | 560 | (11.1) | (12.3) | |||||||||||||||||
| Non-controlling interests | — | — | — | — | — | — | |||||||||||||||||
| Underlying attributable profit to the parent | 276 | (3.1) | (1.6) | 560 | (11.1) | (12.3) | |||||||||||||||||
| Balance sheet | |||||||||||||||||||||||
| Loans and advances to customers | 239,958 | (3.4) | (1.0) | 239,958 | (4.3) | (3.2) | |||||||||||||||||
| Cash, central banks and credit institutions | 59,091 | 10.9 | 13.5 | 59,091 | 17.1 | 18.4 | |||||||||||||||||
| Debt instruments | 13,048 | (10.9) | (8.7) | 13,048 | 4.7 | 5.8 | |||||||||||||||||
| Other financial assets | 290 | 14.1 | 16.8 | 290 | (5.0) | (3.9) | |||||||||||||||||
| Other asset accounts | 4,529 | 16.2 | 19.0 | 4,529 | 3.7 | 4.9 | |||||||||||||||||
| Total assets | 316,916 | (1.1) | 1.3 | 316,916 | (0.5) | 0.7 | |||||||||||||||||
| Customer deposits | 222,832 | (1.8) | 0.5 | 222,832 | (3.1) | (2.0) | |||||||||||||||||
| Central banks and credit institutions | 23,551 | 0.2 | 2.6 | 23,551 | (8.4) | (7.3) | |||||||||||||||||
| Marketable debt securities | 53,382 | 1.2 | 3.6 | 53,382 | 18.9 | 20.2 | |||||||||||||||||
| Other financial liabilities | 2,743 | (16.0) | (14.0) | 2,743 | (41.7) | (41.1) | |||||||||||||||||
| Other liabilities accounts | 1,961 | 20.9 | 23.8 | 1,961 | 36.7 | 38.2 | |||||||||||||||||
| Total liabilities | 304,468 | (1.2) | 1.2 | 304,468 | (0.7) | 0.4 | |||||||||||||||||
| Total equity | 12,448 | 1.7 | 4.1 | 12,448 | 6.5 | 7.7 | |||||||||||||||||
| Memorandum items: | |||||||||||||||||||||||
Gross loans and advances to customers 2 | 229,393 | (2.2) | 0.2 | 229,393 | (2.8) | (1.7) | |||||||||||||||||
| Customer funds | 223,958 | (1.7) | 0.7 | 223,958 | (2.8) | (1.7) | |||||||||||||||||
Customer deposits 3 | 216,443 | (1.8) | 0.6 | 216,443 | (2.9) | (1.8) | |||||||||||||||||
| Mutual funds | 7,516 | 0.4 | 2.8 | 7,516 | (1.0) | 0.1 | |||||||||||||||||
| Ratios (%), operating means and customers | |||||||||||||||||||||||
| RoTE | 9.1 | (0.6) | 9.4 | (1.5) | |||||||||||||||||||
| RoTE (post-AT1) | 8.6 | (0.5) | 8.9 | (1.4) | |||||||||||||||||||
| Efficiency ratio | 54.3 | 0.6 | 54.0 | (3.7) | |||||||||||||||||||
| NPL ratio | 1.25 | 0.01 | 1.25 | (0.21) | |||||||||||||||||||
| NPL coverage ratio | 31.0 | 0.2 | 31.0 | 2.5 | |||||||||||||||||||
| Number of branches | 420 | (5.4) | 420 | (5.4) | |||||||||||||||||||
| Number of total customers (thousands) | 22,571 | 0.1 | 22,571 | 0.4 | |||||||||||||||||||
| Number of active customers (thousands) | 13,551 | (0.2) | 13,551 | (1.5) | |||||||||||||||||||
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
January - June 2025 | | 67 | ||||||
Significant events Key consolidated data Business model | Group financial information | Financial information by segment | Sustainability Corporate governance | Appendix | Index | ||||||||||||||||||||||||||||||
| Information by segment | |||||||||||||||||||||||||||||||||||
| Portugal | |||||||||||||||||
| EUR million | |||||||||||||||||
| / Q1'25 | / H1'24 | ||||||||||||||||
| Underlying income statement | Q2'25 | % | H1'25 | % | |||||||||||||
| Net interest income | 336 | (3.3) | 684 | (18.9) | |||||||||||||
| Net fee income | 129 | 2.7 | 255 | 5.0 | |||||||||||||
Gains (losses) on financial transactions 1 | 19 | (1.6) | 39 | 12.5 | |||||||||||||
| Other operating income | 4 | (52.3) | 14 | (33.7) | |||||||||||||
| Total income | 489 | (2.7) | 992 | (13.1) | |||||||||||||
| Administrative expenses and amortizations | (134) | (1.6) | (269) | 0.7 | |||||||||||||
| Net operating income | 356 | (3.1) | 723 | (17.3) | |||||||||||||
| Net loan-loss provisions | (5) | — | 9 | — | |||||||||||||
| Other gains (losses) and provisions | — | (75.3) | (1) | (97.2) | |||||||||||||
| Profit before tax | 350 | (7.8) | 730 | (12.4) | |||||||||||||
| Tax on profit | (103) | 1.8 | (205) | (24.2) | |||||||||||||
| Profit from continuing operations | 247 | (11.3) | 526 | (6.7) | |||||||||||||
| Net profit from discontinued operations | — | — | — | — | |||||||||||||
| Consolidated profit | 247 | (11.3) | 526 | (6.7) | |||||||||||||
| Non-controlling interests | (1) | 6.6 | (1) | (7.9) | |||||||||||||
| Underlying attributable profit to the parent | 247 | (11.3) | 525 | (6.7) | |||||||||||||
| Balance sheet | |||||||||||||||||
| Loans and advances to customers | 39,684 | 2.0 | 39,684 | 5.3 | |||||||||||||
| Cash, central banks and credit institutions | 4,003 | (5.6) | 4,003 | (42.4) | |||||||||||||
| Debt instruments | 15,170 | 1.4 | 15,170 | 21.0 | |||||||||||||
| Other financial assets | 1,175 | 7.6 | 1,175 | 5.1 | |||||||||||||
| Other asset accounts | 1,042 | 6.8 | 1,042 | (0.8) | |||||||||||||
| Total assets | 61,074 | 1.5 | 61,074 | 2.9 | |||||||||||||
| Customer deposits | 39,676 | 1.6 | 39,676 | 5.2 | |||||||||||||
| Central banks and credit institutions | 8,860 | 0.7 | 8,860 | (0.8) | |||||||||||||
| Marketable debt securities | 5,583 | (3.0) | 5,583 | 17.5 | |||||||||||||
| Other financial liabilities | 344 | (0.7) | 344 | 1.3 | |||||||||||||
| Other liabilities accounts | 3,413 | 3.3 | 3,413 | (4.7) | |||||||||||||
| Total liabilities | 57,876 | 1.1 | 57,876 | 4.6 | |||||||||||||
| Total equity | 3,198 | 8.8 | 3,198 | (20.0) | |||||||||||||
| Memorandum items: | |||||||||||||||||
Gross loans and advances to customers 2 | 40,427 | 2.0 | 40,427 | 5.2 | |||||||||||||
| Customer funds | 44,878 | 1.9 | 44,878 | 6.3 | |||||||||||||
Customer deposits 3 | 39,676 | 1.6 | 39,676 | 5.2 | |||||||||||||
| Mutual funds | 5,202 | 3.9 | 5,202 | 15.5 | |||||||||||||
| Ratios (%), operating means and customers | |||||||||||||||||
| RoTE | 32.1 | 1.0 | 31.5 | 2.7 | |||||||||||||
| RoTE (post-AT1) | 31.6 | 1.0 | 31.1 | 2.6 | |||||||||||||
| Efficiency ratio | 27.3 | 0.3 | 27.1 | 3.7 | |||||||||||||
| NPL ratio | 2.25 | 0.00 | 2.25 | (0.17) | |||||||||||||
| NPL coverage ratio | 82.4 | 0.7 | 82.4 | 2.5 | |||||||||||||
| Number of branches | 373 | 0.0 | 373 | (0.3) | |||||||||||||
| Number of total customers (thousands) | 2,964 | (0.5) | 2,964 | 0.6 | |||||||||||||
| Number of active customers (thousands) | 1,920 | 0.4 | 1,920 | 3.2 | |||||||||||||
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
68 | | January - June 2025 | ||||||
Significant events Key consolidated data Business model | Group financial information | Financial information by segment | Sustainability Corporate governance | Appendix | Index | ||||||||||||||||||||||||||||||
| Information by segment | |||||||||||||||||||||||||||||||||||
| Poland | Q | ||||||||||||||||||||||
| EUR million | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Underlying income statement | Q2'25 | % | % excl. FX | H1'25 | % | % excl. FX | |||||||||||||||||
| Net interest income | 736 | (1.2) | 0.2 | 1,480 | 7.0 | 4.8 | |||||||||||||||||
| Net fee income | 184 | (3.0) | (1.6) | 373 | 10.1 | 7.9 | |||||||||||||||||
Gains (losses) on financial transactions 1 | 32 | 176.0 | 178.7 | 44 | 83.6 | 80.0 | |||||||||||||||||
| Other operating income | 7 | — | — | (55) | 58.0 | 54.8 | |||||||||||||||||
| Total income | 959 | 8.6 | 10.0 | 1,842 | 7.6 | 5.5 | |||||||||||||||||
| Administrative expenses and amortizations | (256) | 0.1 | 1.5 | (512) | 9.7 | 7.6 | |||||||||||||||||
| Net operating income | 703 | 12.0 | 13.5 | 1,330 | 6.8 | 4.7 | |||||||||||||||||
| Net loan-loss provisions | (43) | (45.2) | (44.1) | (120) | (59.5) | (60.3) | |||||||||||||||||
| Other gains (losses) and provisions | (195) | 297.4 | 301.0 | (245) | 44.2 | 41.3 | |||||||||||||||||
| Profit before tax | 465 | (7.1) | (5.8) | 965 | 23.9 | 21.5 | |||||||||||||||||
| Tax on profit | (115) | (6.1) | (4.7) | (237) | 14.5 | 12.2 | |||||||||||||||||
| Profit from continuing operations | 350 | (7.5) | (6.1) | 728 | 27.4 | 24.8 | |||||||||||||||||
| Net profit from discontinued operations | — | — | — | — | — | — | |||||||||||||||||
| Consolidated profit | 350 | (7.5) | (6.1) | 728 | 27.4 | 24.8 | |||||||||||||||||
| Non-controlling interests | (131) | (7.0) | (5.6) | (272) | 46.6 | 43.7 | |||||||||||||||||
| Underlying attributable profit to the parent | 219 | (7.8) | (6.4) | 457 | 18.2 | 15.8 | |||||||||||||||||
| Balance sheet | |||||||||||||||||||||||
| Loans and advances to customers | 39,380 | 1.0 | 2.3 | 39,380 | 8.4 | 6.7 | |||||||||||||||||
| Cash, central banks and credit institutions | 9,880 | 1.7 | 3.0 | 9,880 | 21.1 | 19.3 | |||||||||||||||||
| Debt instruments | 18,689 | (8.9) | (7.7) | 18,689 | 19.2 | 17.4 | |||||||||||||||||
| Other financial assets | 852 | 38.4 | 40.1 | 852 | 74.8 | 72.1 | |||||||||||||||||
| Other asset accounts | 2,243 | 8.7 | 10.1 | 2,243 | 24.5 | 22.6 | |||||||||||||||||
| Total assets | 71,044 | (1.2) | 0.1 | 71,044 | 13.7 | 12.0 | |||||||||||||||||
| Customer deposits | 51,979 | (2.3) | (1.1) | 51,979 | 10.5 | 8.8 | |||||||||||||||||
| Central banks and credit institutions | 6,050 | 13.5 | 14.9 | 6,050 | 41.4 | 39.3 | |||||||||||||||||
| Marketable debt securities | 2,859 | 4.6 | 5.9 | 2,859 | 30.8 | 28.8 | |||||||||||||||||
| Other financial liabilities | 1,735 | 1.0 | 2.3 | 1,735 | 5.3 | 3.7 | |||||||||||||||||
| Other liabilities accounts | 1,953 | 25.7 | 27.3 | 1,953 | 52.4 | 50.0 | |||||||||||||||||
| Total liabilities | 64,576 | 0.1 | 1.3 | 64,576 | 14.4 | 12.7 | |||||||||||||||||
| Total equity | 6,468 | (12.0) | (10.9) | 6,468 | 7.4 | 5.8 | |||||||||||||||||
| Memorandum items: | |||||||||||||||||||||||
Gross loans and advances to customers 2 | 39,989 | 0.5 | 1.7 | 39,989 | 7.7 | 6.0 | |||||||||||||||||
| Customer funds | 58,832 | (0.7) | 0.5 | 58,832 | 13.1 | 11.4 | |||||||||||||||||
Customer deposits 3 | 51,585 | (1.5) | (0.2) | 51,585 | 11.9 | 10.1 | |||||||||||||||||
| Mutual funds | 7,247 | 4.8 | 6.1 | 7,247 | 22.9 | 21.0 | |||||||||||||||||
| Ratios (%), operating means and customers | |||||||||||||||||||||||
| RoTE | 23.7 | 0.9 | 23.2 | 3.8 | |||||||||||||||||||
| RoTE (post-AT1) | 23.0 | 0.8 | 22.5 | 3.8 | |||||||||||||||||||
| Efficiency ratio | 26.7 | (2.3) | 27.8 | 0.5 | |||||||||||||||||||
| NPL ratio | 3.38 | (0.14) | 3.38 | (0.01) | |||||||||||||||||||
| NPL coverage ratio | 63.8 | 0.1 | 63.8 | (11.3) | |||||||||||||||||||
| Number of branches | 361 | (0.3) | 361 | (3.2) | |||||||||||||||||||
| Number of total customers (thousands) | 6,020 | (0.4) | 6,020 | 1.8 | |||||||||||||||||||
| Number of active customers (thousands) | 4,709 | 0.8 | 4,709 | 3.6 | |||||||||||||||||||
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
January - June 2025 | | 69 | ||||||
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| Information by segment | |||||||||||||||||||||||||||||||||||
| DCB EUROPE | |||||||||||||||||||||||
| EUR million | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Underlying income statement | Q2'25 | % | % excl. FX | H1'25 | % | % excl. FX | |||||||||||||||||
| Net interest income | 1,155 | 3.8 | 4.1 | 2,266 | 3.6 | 3.7 | |||||||||||||||||
| Net fee income | 185 | (1.5) | (1.3) | 372 | (17.4) | (17.4) | |||||||||||||||||
Gains (losses) on financial transactions 1 | (16) | 260.4 | 259.5 | (20) | — | — | |||||||||||||||||
| Other operating income | 101 | (6.0) | (5.5) | 208 | 1.3 | 1.1 | |||||||||||||||||
| Total income | 1,424 | 1.6 | 1.8 | 2,827 | (0.9) | (0.9) | |||||||||||||||||
| Administrative expenses and amortizations | (660) | (1.0) | (0.8) | (1,326) | 0.5 | 0.6 | |||||||||||||||||
| Net operating income | 765 | 3.9 | 4.2 | 1,500 | (2.2) | (2.2) | |||||||||||||||||
| Net loan-loss provisions | (284) | (15.5) | (15.2) | (619) | 6.0 | 5.9 | |||||||||||||||||
| Other gains (losses) and provisions | (111) | 154.3 | 156.1 | (154) | (20.2) | (20.8) | |||||||||||||||||
| Profit before tax | 371 | 3.9 | 4.2 | 727 | (3.9) | (3.7) | |||||||||||||||||
| Tax on profit | (108) | 7.9 | 8.0 | (209) | 15.4 | 15.6 | |||||||||||||||||
| Profit from continuing operations | 262 | 2.3 | 2.6 | 518 | (10.0) | (9.8) | |||||||||||||||||
| Net profit from discontinued operations | — | — | — | — | — | — | |||||||||||||||||
| Consolidated profit | 262 | 2.3 | 2.6 | 518 | (10.0) | (9.8) | |||||||||||||||||
| Non-controlling interests | (60) | (5.6) | (5.5) | (123) | (0.8) | (0.7) | |||||||||||||||||
| Underlying attributable profit to the parent | 203 | 4.9 | 5.3 | 396 | (12.5) | (12.3) | |||||||||||||||||
| Balance sheet | |||||||||||||||||||||||
| Loans and advances to customers | 139,300 | 2.1 | 2.7 | 139,300 | 2.7 | 3.2 | |||||||||||||||||
| Cash, central banks and credit institutions | 17,694 | 3.8 | 4.6 | 17,694 | (7.5) | (6.9) | |||||||||||||||||
| Debt instruments | 8,115 | 1.1 | 1.7 | 8,115 | 37.0 | 37.1 | |||||||||||||||||
| Other financial assets | 105 | 4.3 | 4.4 | 105 | 6.8 | 6.9 | |||||||||||||||||
| Other asset accounts | 11,752 | 3.1 | 3.8 | 11,752 | 11.2 | 11.8 | |||||||||||||||||
| Total assets | 176,966 | 2.3 | 2.9 | 176,966 | 3.3 | 3.8 | |||||||||||||||||
| Customer deposits | 84,005 | (0.1) | 0.5 | 84,005 | 9.2 | 9.7 | |||||||||||||||||
| Central banks and credit institutions | 31,183 | 9.6 | 11.3 | 31,183 | 6.6 | 7.8 | |||||||||||||||||
| Marketable debt securities | 39,781 | 1.7 | 1.9 | 39,781 | (10.3) | (10.0) | |||||||||||||||||
| Other financial liabilities | 2,585 | 17.5 | 17.8 | 2,585 | 3.1 | 3.1 | |||||||||||||||||
| Other liabilities accounts | 5,683 | 5.4 | 6.1 | 5,683 | 10.5 | 10.8 | |||||||||||||||||
| Total liabilities | 163,237 | 2.5 | 3.2 | 163,237 | 3.2 | 3.7 | |||||||||||||||||
| Total equity | 13,730 | (0.7) | 0.2 | 13,730 | 4.4 | 5.1 | |||||||||||||||||
| Memorandum items: | |||||||||||||||||||||||
Gross loans and advances to customers 2 | 142,351 | 2.0 | 2.7 | 142,351 | 2.9 | 3.4 | |||||||||||||||||
| Customer funds | 88,774 | 0.1 | 0.6 | 88,774 | 9.5 | 9.9 | |||||||||||||||||
Customer deposits 3 | 84,005 | (0.1) | 0.5 | 84,005 | 9.2 | 9.7 | |||||||||||||||||
| Mutual funds | 4,769 | 2.3 | 2.3 | 4,769 | 14.9 | 14.9 | |||||||||||||||||
| Ratios (%), operating means and customers | |||||||||||||||||||||||
| RoTE | 7.9 | 0.3 | 7.7 | (1.2) | |||||||||||||||||||
| RoTE (post-AT1) | 7.0 | 0.3 | 6.9 | (1.2) | |||||||||||||||||||
| Efficiency ratio | 46.3 | (1.2) | 46.9 | 0.7 | |||||||||||||||||||
| NPL ratio | 2.62 | 0.00 | 2.62 | 0.30 | |||||||||||||||||||
| NPL coverage ratio | 82.3 | 0.1 | 82.3 | (3.1) | |||||||||||||||||||
| Number of branches | 297 | (8.3) | 297 | (9.2) | |||||||||||||||||||
| Number of total customers (thousands) | 19,579 | (0.2) | 19,579 | 0.3 | |||||||||||||||||||
2. Excluding reverse repos.
3. Excluding repos.
70 | | January - June 2025 | ||||||
Significant events Key consolidated data Business model | Group financial information | Financial information by segment | Sustainability Corporate governance | Appendix | Index | ||||||||||||||||||||||||||||||
| Information by segment | |||||||||||||||||||||||||||||||||||
| United States | |||||||||||||||||||||||
| EUR million | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Underlying income statement | Q2'25 | % | % excl. FX | H1'25 | % | % excl. FX | |||||||||||||||||
| Net interest income | 1,450 | (3.3) | 4.1 | 2,949 | 4.4 | 5.5 | |||||||||||||||||
| Net fee income | 323 | (8.8) | (1.7) | 678 | 25.8 | 27.1 | |||||||||||||||||
Gains (losses) on financial transactions 1 | 76 | (21.6) | (15.0) | 172 | (13.0) | (12.1) | |||||||||||||||||
| Other operating income | 64 | 1.1 | 8.6 | 128 | (38.7) | (38.1) | |||||||||||||||||
| Total income | 1,913 | (5.0) | 2.3 | 3,927 | 4.2 | 5.2 | |||||||||||||||||
| Administrative expenses and amortizations | (937) | (7.0) | 0.3 | (1,944) | 2.2 | 3.2 | |||||||||||||||||
| Net operating income | 976 | (3.0) | 4.4 | 1,983 | 6.2 | 7.3 | |||||||||||||||||
| Net loan-loss provisions | (493) | (7.8) | (0.6) | (1,028) | (12.2) | (11.3) | |||||||||||||||||
| Other gains (losses) and provisions | (26) | 6.9 | 14.7 | (51) | (38.9) | (38.2) | |||||||||||||||||
| Profit before tax | 457 | 2.1 | 9.7 | 904 | 47.5 | 49.0 | |||||||||||||||||
| Tax on profit | (35) | 14.2 | 22.2 | (65) | — | — | |||||||||||||||||
| Profit from continuing operations | 422 | 1.3 | 8.8 | 839 | 26.2 | 27.5 | |||||||||||||||||
| Net profit from discontinued operations | — | — | — | — | — | — | |||||||||||||||||
| Consolidated profit | 422 | 1.3 | 8.8 | 839 | 26.2 | 27.5 | |||||||||||||||||
| Non-controlling interests | — | — | — | — | — | — | |||||||||||||||||
| Underlying attributable profit to the parent | 422 | 1.3 | 8.8 | 839 | 26.2 | 27.5 | |||||||||||||||||
| Balance sheet | |||||||||||||||||||||||
| Loans and advances to customers | 122,610 | (10.2) | (2.4) | 122,610 | (10.0) | (1.3) | |||||||||||||||||
| Cash, central banks and credit institutions | 28,070 | (1.4) | 7.1 | 28,070 | 14.5 | 25.6 | |||||||||||||||||
| Debt instruments | 38,151 | 25.7 | 36.6 | 38,151 | 43.6 | 57.6 | |||||||||||||||||
| Other financial assets | 2,284 | (0.6) | 8.0 | 2,284 | (5.1) | 4.2 | |||||||||||||||||
| Other asset accounts | 12,944 | (14.2) | (6.8) | 12,944 | (21.8) | (14.2) | |||||||||||||||||
| Total assets | 204,059 | (4.1) | 4.3 | 204,059 | (1.1) | 8.5 | |||||||||||||||||
| Customer deposits | 113,937 | (7.1) | 1.0 | 113,937 | (7.9) | 1.1 | |||||||||||||||||
| Central banks and credit institutions | 37,731 | 21.2 | 31.7 | 37,731 | 38.9 | 52.3 | |||||||||||||||||
| Marketable debt securities | 28,656 | (15.2) | (7.8) | 28,656 | (7.0) | 2.1 | |||||||||||||||||
| Other financial liabilities | 5,825 | (11.3) | (3.6) | 5,825 | (0.1) | 9.6 | |||||||||||||||||
| Other liabilities accounts | 3,074 | (7.3) | 0.8 | 3,074 | 1.8 | 11.7 | |||||||||||||||||
| Total liabilities | 189,223 | (4.2) | 4.2 | 189,223 | (0.7) | 9.0 | |||||||||||||||||
| Total equity | 14,835 | (3.2) | 5.3 | 14,835 | (5.8) | 3.3 | |||||||||||||||||
| Memorandum items: | |||||||||||||||||||||||
Gross loans and advances to customers 2 | 105,970 | (9.5) | (1.6) | 105,970 | (10.2) | (1.5) | |||||||||||||||||
| Customer funds | 96,993 | (8.0) | 0.0 | 96,993 | (4.8) | 4.4 | |||||||||||||||||
Customer deposits 3 | 82,828 | (9.0) | (1.1) | 82,828 | (6.5) | 2.6 | |||||||||||||||||
| Mutual funds | 14,165 | (1.9) | 6.6 | 14,165 | 6.1 | 16.4 | |||||||||||||||||
| Ratios (%), operating means and customers | |||||||||||||||||||||||
| RoTE | 11.8 | 0.5 | 11.6 | 2.3 | |||||||||||||||||||
| RoTE (post-AT1) | 11.2 | 0.5 | 11.0 | 2.3 | |||||||||||||||||||
| Efficiency ratio | 49.0 | (1.0) | 49.5 | (1.0) | |||||||||||||||||||
| NPL ratio | 4.65 | 0.20 | 4.65 | 0.32 | |||||||||||||||||||
| NPL coverage ratio | 63.1 | (0.7) | 63.1 | (4.8) | |||||||||||||||||||
| Number of branches | 403 | (0.2) | 403 | (1.5) | |||||||||||||||||||
| Number of total customers (thousands) | 4,477 | (0.4) | 4,477 | (0.6) | |||||||||||||||||||
| Number of active customers (thousands) | 4,279 | (0.6) | 4,279 | (1.6) | |||||||||||||||||||
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
January - June 2025 | | 71 | ||||||
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| Information by segment | |||||||||||||||||||||||||||||||||||
| Mexico | Q | ||||||||||||||||||||||
| EUR million | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Underlying income statement | Q2'25 | % | % excl. FX | H1'25 | % | % excl. FX | |||||||||||||||||
| Net interest income | 1,109 | (1.8) | 1.1 | 2,238 | (7.6) | 8.9 | |||||||||||||||||
| Net fee income | 339 | (3.1) | (0.2) | 689 | (6.0) | 10.8 | |||||||||||||||||
Gains (losses) on financial transactions 1 | 73 | 13.9 | 17.0 | 136 | (5.2) | 11.7 | |||||||||||||||||
| Other operating income | (16) | (57.0) | (54.9) | (54) | (1.4) | 16.3 | |||||||||||||||||
| Total income | 1,504 | (0.1) | 2.8 | 3,010 | (7.2) | 9.4 | |||||||||||||||||
| Administrative expenses and amortizations | (617) | (1.7) | 1.2 | (1,245) | (7.3) | 9.3 | |||||||||||||||||
| Net operating income | 887 | 1.1 | 4.0 | 1,765 | (7.2) | 9.4 | |||||||||||||||||
| Net loan-loss provisions | (302) | (0.6) | 2.3 | (607) | (15.9) | (0.8) | |||||||||||||||||
| Other gains (losses) and provisions | (34) | 9.2 | 12.2 | (65) | 104.1 | 140.6 | |||||||||||||||||
| Profit before tax | 551 | 1.5 | 4.5 | 1,093 | (4.8) | 12.2 | |||||||||||||||||
| Tax on profit | (150) | 1.6 | 4.5 | (297) | (3.1) | 14.2 | |||||||||||||||||
| Profit from continuing operations | 401 | 1.5 | 4.5 | 796 | (5.4) | 11.5 | |||||||||||||||||
| Net profit from discontinued operations | — | — | — | — | — | — | |||||||||||||||||
| Consolidated profit | 401 | 1.5 | 4.5 | 796 | (5.4) | 11.5 | |||||||||||||||||
| Non-controlling interests | (1) | (12.3) | (9.5) | (2) | (6.6) | 10.1 | |||||||||||||||||
| Underlying attributable profit to the parent | 400 | 1.6 | 4.5 | 794 | (5.4) | 11.5 | |||||||||||||||||
| Balance sheet | |||||||||||||||||||||||
| Loans and advances to customers | 42,983 | (0.8) | (0.6) | 42,983 | (8.2) | 4.0 | |||||||||||||||||
| Cash, central banks and credit institutions | 10,738 | (2.1) | (1.9) | 10,738 | 11.4 | 26.2 | |||||||||||||||||
| Debt instruments | 26,686 | (2.3) | (2.1) | 26,686 | (11.8) | (0.1) | |||||||||||||||||
| Other financial assets | 4,124 | (6.5) | (6.3) | 4,124 | (33.0) | (24.1) | |||||||||||||||||
| Other asset accounts | 5,378 | (0.1) | 0.1 | 5,378 | (14.7) | (3.4) | |||||||||||||||||
| Total assets | 89,908 | (1.7) | (1.4) | 89,908 | (9.3) | 2.7 | |||||||||||||||||
| Customer deposits | 48,394 | (1.1) | (0.9) | 48,394 | (10.3) | 1.6 | |||||||||||||||||
| Central banks and credit institutions | 14,280 | (3.9) | (3.6) | 14,280 | (4.0) | 8.7 | |||||||||||||||||
| Marketable debt securities | 9,261 | 11.6 | 11.9 | 9,261 | 6.8 | 20.9 | |||||||||||||||||
| Other financial liabilities | 7,355 | (10.8) | (10.6) | 7,355 | (21.7) | (11.3) | |||||||||||||||||
| Other liabilities accounts | 2,737 | (9.0) | (8.8) | 2,737 | (19.9) | (9.2) | |||||||||||||||||
| Total liabilities | 82,027 | (1.6) | (1.3) | 82,027 | (9.2) | 2.9 | |||||||||||||||||
| Total equity | 7,881 | (2.5) | (2.2) | 7,881 | (10.7) | 1.1 | |||||||||||||||||
| Memorandum items: | |||||||||||||||||||||||
Gross loans and advances to customers 2 | 44,313 | (0.5) | (0.2) | 44,313 | (6.4) | 6.1 | |||||||||||||||||
| Customer funds | 62,330 | 1.6 | 1.8 | 62,330 | (3.2) | 9.7 | |||||||||||||||||
Customer deposits 3 | 41,261 | 0.3 | 0.5 | 41,261 | (8.0) | 4.3 | |||||||||||||||||
| Mutual funds | 21,070 | 4.2 | 4.4 | 21,070 | 7.9 | 22.2 | |||||||||||||||||
| Ratios (%), operating means and customers | |||||||||||||||||||||||
| RoTE | 21.7 | 0.7 | 21.4 | 2.3 | |||||||||||||||||||
| RoTE (post-AT1) | 21.3 | 0.7 | 21.0 | 2.3 | |||||||||||||||||||
| Efficiency ratio | 41.0 | (0.7) | 41.4 | — | |||||||||||||||||||
| NPL ratio | 2.93 | 0.14 | 2.93 | 0.15 | |||||||||||||||||||
| NPL coverage ratio | 99.4 | (2.5) | 99.4 | (3.1) | |||||||||||||||||||
| Number of branches | 1,332 | (0.7) | 1,332 | (1.8) | |||||||||||||||||||
| Number of total customers (thousands) | 21,696 | 1.4 | 21,696 | 3.5 | |||||||||||||||||||
| Number of active customers (thousands) | 11,218 | 2.6 | 11,218 | 5.8 | |||||||||||||||||||
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
72 | | January - June 2025 | ||||||
Significant events Key consolidated data Business model | Group financial information | Financial information by segment | Sustainability Corporate governance | Appendix | Index | ||||||||||||||||||||||||||||||
| Information by segment | |||||||||||||||||||||||||||||||||||
| Brazil | |||||||||||||||||||||||
| EUR million | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Underlying income statement | Q2'25 | % | % excl. FX | H1'25 | % | % excl. FX | |||||||||||||||||
| Net interest income | 2,338 | (2.7) | 1.6 | 4,740 | (9.5) | 3.7 | |||||||||||||||||
| Net fee income | 757 | (4.6) | (0.3) | 1,549 | (10.7) | 2.3 | |||||||||||||||||
Gains (losses) on financial transactions 1 | (36) | — | — | (14) | 122.2 | 154.4 | |||||||||||||||||
| Other operating income | 27 | 340.8 | 352.6 | 33 | 57.2 | 79.9 | |||||||||||||||||
| Total income | 3,085 | (4.3) | — | 6,309 | (9.7) | 3.4 | |||||||||||||||||
| Administrative expenses and amortizations | (1,002) | (5.4) | (1.1) | (2,061) | (9.0) | 4.2 | |||||||||||||||||
| Net operating income | 2,083 | (3.8) | 0.5 | 4,248 | (10.0) | 3.1 | |||||||||||||||||
| Net loan-loss provisions | (1,124) | (3.6) | 0.6 | (2,290) | (1.4) | 12.9 | |||||||||||||||||
| Other gains (losses) and provisions | (213) | 9.6 | 14.2 | (407) | (12.0) | 0.8 | |||||||||||||||||
| Profit before tax | 747 | (7.2) | (3.0) | 1,551 | (19.8) | (8.2) | |||||||||||||||||
| Tax on profit | (210) | (14.8) | (10.8) | (456) | (32.7) | (23.0) | |||||||||||||||||
| Profit from continuing operations | 537 | (3.8) | 0.5 | 1,096 | (12.9) | (0.3) | |||||||||||||||||
| Net profit from discontinued operations | — | — | — | — | — | — | |||||||||||||||||
| Consolidated profit | 537 | (3.8) | 0.5 | 1,096 | (12.9) | (0.3) | |||||||||||||||||
| Non-controlling interests | (50) | 1.5 | 5.9 | (99) | (14.8) | (2.5) | |||||||||||||||||
| Underlying attributable profit to the parent | 487 | (4.3) | (0.1) | 996 | (12.7) | — | |||||||||||||||||
| Balance sheet | |||||||||||||||||||||||
| Loans and advances to customers | 84,691 | (4.2) | (1.0) | 84,691 | (8.9) | (1.9) | |||||||||||||||||
| Cash, central banks and credit institutions | 51,655 | (6.1) | (2.9) | 51,655 | 4.0 | 12.1 | |||||||||||||||||
| Debt instruments | 44,945 | (4.6) | (1.4) | 44,945 | (3.5) | 4.0 | |||||||||||||||||
| Other financial assets | 9,226 | 1.2 | 4.6 | 9,226 | 18.9 | 28.1 | |||||||||||||||||
| Other asset accounts | 14,933 | 0.6 | 4.0 | 14,933 | 9.7 | 18.2 | |||||||||||||||||
| Total assets | 205,450 | (4.2) | (1.0) | 205,450 | (2.5) | 5.1 | |||||||||||||||||
| Customer deposits | 90,771 | (7.9) | (4.8) | 90,771 | (8.2) | (1.1) | |||||||||||||||||
| Central banks and credit institutions | 33,775 | (2.7) | 0.6 | 33,775 | 3.1 | 11.1 | |||||||||||||||||
| Marketable debt securities | 26,593 | — | 3.4 | 26,593 | 4.8 | 13.0 | |||||||||||||||||
| Other financial liabilities | 32,410 | (0.7) | 2.7 | 32,410 | 10.2 | 18.7 | |||||||||||||||||
| Other liabilities accounts | 6,173 | 1.3 | 4.7 | 6,173 | (23.7) | (17.7) | |||||||||||||||||
| Total liabilities | 189,722 | (4.5) | (1.2) | 189,722 | (2.5) | 5.1 | |||||||||||||||||
| Total equity | 15,728 | (1.0) | 2.4 | 15,728 | (2.0) | 5.6 | |||||||||||||||||
| Memorandum items: | |||||||||||||||||||||||
Gross loans and advances to customers 2 | 89,320 | (4.6) | (1.4) | 89,320 | (9.5) | (2.5) | |||||||||||||||||
| Customer funds | 130,531 | (5.6) | (2.4) | 130,531 | (3.7) | 3.7 | |||||||||||||||||
Customer deposits 3 | 79,271 | (5.9) | (2.8) | 79,271 | (7.3) | (0.1) | |||||||||||||||||
| Mutual funds | 51,260 | (5.2) | (2.0) | 51,260 | 2.4 | 10.3 | |||||||||||||||||
| Ratios (%), operating means and customers | |||||||||||||||||||||||
| RoTE | 14.8 | (0.3) | 14.9 | (0.9) | |||||||||||||||||||
| RoTE (post-AT1) | 14.1 | (0.3) | 14.2 | (0.9) | |||||||||||||||||||
| Efficiency ratio | 32.5 | (0.4) | 32.7 | 0.2 | |||||||||||||||||||
| NPL ratio | 6.61 | 0.28 | 6.61 | 0.65 | |||||||||||||||||||
| NPL coverage ratio | 85.1 | 3.1 | 85.1 | (5.2) | |||||||||||||||||||
| Number of branches | 1,888 | (8.1) | 1,888 | (22.8) | |||||||||||||||||||
| Number of total customers (thousands) | 71,707 | 1.4 | 71,707 | 8.1 | |||||||||||||||||||
| Number of active customers (thousands) | 33,576 | 0.6 | 33,576 | 5.3 | |||||||||||||||||||
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
January - June 2025 | | 73 | ||||||
Significant events Key consolidated data Business model | Group financial information | Financial information by segment | Sustainability Corporate governance | Appendix | Index | ||||||||||||||||||||||||||||||
| Information by segment | |||||||||||||||||||||||||||||||||||
| Chile | |||||||||||||||||||||||
| EUR million | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Underlying income statement | Q2'25 | % | % excl. FX | H1'25 | % | % excl. FX | |||||||||||||||||
| Net interest income | 490 | (4.3) | 1.3 | 1,002 | 21.7 | 24.8 | |||||||||||||||||
| Net fee income | 145 | (4.0) | 1.7 | 297 | 11.8 | 14.7 | |||||||||||||||||
Gains (losses) on financial transactions 1 | 57 | (8.6) | (3.1) | 120 | 11.8 | 14.8 | |||||||||||||||||
| Other operating income | (5) | 5.5 | 11.4 | (9) | (10.0) | (7.7) | |||||||||||||||||
| Total income | 688 | (4.7) | 0.9 | 1,410 | 18.8 | 21.9 | |||||||||||||||||
| Administrative expenses and amortizations | (235) | (5.6) | 0.0 | (484) | 4.0 | 6.7 | |||||||||||||||||
| Net operating income | 453 | (4.2) | 1.4 | 926 | 28.4 | 31.7 | |||||||||||||||||
| Net loan-loss provisions | (138) | (11.4) | (6.0) | (294) | 16.8 | 19.8 | |||||||||||||||||
| Other gains (losses) and provisions | (7) | 177.9 | 188.8 | (10) | (50.9) | (49.6) | |||||||||||||||||
| Profit before tax | 308 | (2.2) | 3.5 | 623 | 38.4 | 42.0 | |||||||||||||||||
| Tax on profit | (45) | (2.3) | 3.4 | (92) | (0.9) | 1.7 | |||||||||||||||||
| Profit from continuing operations | 263 | (2.1) | 3.6 | 531 | 48.5 | 52.4 | |||||||||||||||||
| Net profit from discontinued operations | — | — | — | — | — | — | |||||||||||||||||
| Consolidated profit | 263 | (2.1) | 3.6 | 531 | 48.5 | 52.4 | |||||||||||||||||
| Non-controlling interests | (78) | (6.3) | (0.7) | (162) | 54.5 | 58.5 | |||||||||||||||||
| Underlying attributable profit to the parent | 184 | (0.2) | 5.5 | 369 | 46.0 | 49.8 | |||||||||||||||||
| Balance sheet | |||||||||||||||||||||||
| Loans and advances to customers | 38,336 | (5.3) | 0.8 | 38,336 | (5.6) | 2.3 | |||||||||||||||||
| Cash, central banks and credit institutions | 4,476 | (12.2) | (6.6) | 4,476 | (15.4) | (8.3) | |||||||||||||||||
| Debt instruments | 8,289 | (5.3) | 0.8 | 8,289 | (18.9) | (12.1) | |||||||||||||||||
| Other financial assets | 11,226 | (8.5) | (2.6) | 11,226 | (13.4) | (6.1) | |||||||||||||||||
| Other asset accounts | 2,018 | (18.2) | (12.9) | 2,018 | (21.3) | (14.7) | |||||||||||||||||
| Total assets | 64,346 | (6.8) | (0.8) | 64,346 | (10.2) | (2.7) | |||||||||||||||||
| Customer deposits | 27,298 | (7.8) | (1.9) | 27,298 | (3.8) | 4.2 | |||||||||||||||||
| Central banks and credit institutions | 8,626 | 1.1 | 7.6 | 8,626 | (26.3) | (20.1) | |||||||||||||||||
| Marketable debt securities | 9,747 | (2.0) | 4.3 | 9,747 | (10.2) | (2.7) | |||||||||||||||||
| Other financial liabilities | 11,724 | (10.2) | (4.4) | 11,724 | (13.3) | (6.1) | |||||||||||||||||
| Other liabilities accounts | 2,014 | (7.4) | (1.4) | 2,014 | 6.3 | 15.2 | |||||||||||||||||
| Total liabilities | 59,408 | (6.2) | (0.2) | 59,408 | (10.5) | (3.0) | |||||||||||||||||
| Total equity | 4,937 | (13.9) | (8.3) | 4,937 | (6.2) | 1.6 | |||||||||||||||||
| Memorandum items: | |||||||||||||||||||||||
Gross loans and advances to customers 2 | 38,954 | (6.3) | (0.3) | 38,954 | (6.8) | 1.0 | |||||||||||||||||
| Customer funds | 39,058 | (7.3) | (1.3) | 39,058 | (1.3) | 6.9 | |||||||||||||||||
Customer deposits 3 | 26,614 | (9.8) | (4.0) | 26,614 | (6.0) | 1.8 | |||||||||||||||||
| Mutual funds | 12,444 | (1.3) | 5.0 | 12,444 | 10.4 | 19.7 | |||||||||||||||||
| Ratios (%), operating means and customers | |||||||||||||||||||||||
| RoTE | 21.6 | 2.6 | 20.2 | 6.5 | |||||||||||||||||||
| RoTE (post-AT1) | 20.8 | 2.6 | 19.5 | 6.5 | |||||||||||||||||||
| Efficiency ratio | 34.2 | (0.3) | 34.3 | (4.9) | |||||||||||||||||||
| NPL ratio | 5.43 | (0.17) | 5.43 | 0.31 | |||||||||||||||||||
| NPL coverage ratio | 49.8 | 0.3 | 49.8 | (3.3) | |||||||||||||||||||
| Number of branches | 231 | (2.9) | 231 | (4.5) | |||||||||||||||||||
| Number of total customers (thousands) | 4,515 | 4.1 | 4,515 | 11.5 | |||||||||||||||||||
| Number of active customers (thousands) | 2,657 | 2.0 | 2,657 | 6.6 | |||||||||||||||||||
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
74 | | January - June 2025 | ||||||
Significant events Key consolidated data Business model | Group financial information | Financial information by segment | Sustainability Corporate governance | Appendix | Index | ||||||||||||||||||||||||||||||
| Information by segment | |||||||||||||||||||||||||||||||||||
| Argentina | ||||||||||||||||||||
| EUR million | ||||||||||||||||||||
| / Q1'25 | / H1'24 | |||||||||||||||||||
| Underlying income statement | Q2'25 | Q1'25 | % | H1'25 | % | |||||||||||||||
| Net interest income | 523 | 416 | 25.7 | 939 | (34.0) | |||||||||||||||
| Net fee income | 217 | 172 | 25.9 | 390 | 90.9 | |||||||||||||||
Gains (losses) on financial transactions 1 | 83 | 38 | 119.2 | 121 | 30.0 | |||||||||||||||
| Other operating income | (183) | (122) | 49.3 | (305) | (56.4) | |||||||||||||||
| Total income | 641 | 504 | 27.1 | 1,145 | 12.2 | |||||||||||||||
| Administrative expenses and amortizations | (275) | (223) | 23.3 | (498) | 20.2 | |||||||||||||||
| Net operating income | 366 | 281 | 30.2 | 647 | 6.8 | |||||||||||||||
| Net loan-loss provisions | (133) | (76) | 76.1 | (209) | 218.6 | |||||||||||||||
| Other gains (losses) and provisions | (37) | (8) | 371.1 | (45) | (78.2) | |||||||||||||||
| Profit before tax | 195 | 197 | (1.1) | 393 | 18.2 | |||||||||||||||
| Tax on profit | (61) | (69) | (10.5) | (130) | 98.2 | |||||||||||||||
| Profit from continuing operations | 134 | 129 | 3.9 | 263 | (1.5) | |||||||||||||||
| Net profit from discontinued operations | — | — | — | — | — | |||||||||||||||
| Consolidated profit | 134 | 129 | 3.9 | 263 | (1.5) | |||||||||||||||
| Non-controlling interests | 0 | 0 | 6.8 | 0 | (17.8) | |||||||||||||||
| Underlying attributable profit to the parent | 134 | 129 | 3.9 | 262 | (1.4) | |||||||||||||||
| Balance sheet | ||||||||||||||||||||
| Loans and advances to customers | 8,607 | 8,367 | 2.9 | 8,607 | 63.8 | |||||||||||||||
| Cash, central banks and credit institutions | 4,090 | 3,833 | 6.7 | 4,090 | 79.7 | |||||||||||||||
| Debt instruments | 2,821 | 2,815 | 0.2 | 2,821 | 53.2 | |||||||||||||||
| Other financial assets | 68 | 86 | (21.3) | 68 | 24.3 | |||||||||||||||
| Other asset accounts | 962 | 874 | 10.1 | 962 | 43.5 | |||||||||||||||
| Total assets | 16,548 | 15,976 | 3.6 | 16,548 | 63.9 | |||||||||||||||
| Customer deposits | 11,476 | 10,978 | 4.5 | 11,476 | 106.7 | |||||||||||||||
| Central banks and credit institutions | 595 | 842 | (29.4) | 595 | (62.6) | |||||||||||||||
| Marketable debt securities | 299 | 242 | 23.3 | 299 | 65.7 | |||||||||||||||
| Other financial liabilities | 1,087 | 1,007 | 8.0 | 1,087 | 18.1 | |||||||||||||||
| Other liabilities accounts | 513 | 422 | 21.7 | 513 | 79.8 | |||||||||||||||
| Total liabilities | 13,969 | 13,491 | 3.5 | 13,969 | 63.8 | |||||||||||||||
| Total equity | 2,579 | 2,485 | 3.8 | 2,579 | 64.2 | |||||||||||||||
| Memorandum items: | ||||||||||||||||||||
Gross loans and advances to customers 2 | 8,989 | 8,642 | 4.0 | 8,989 | 67.5 | |||||||||||||||
| Customer funds | 17,761 | 17,006 | 4.4 | 17,761 | 104.7 | |||||||||||||||
Customer deposits 3 | 11,476 | 10,978 | 4.5 | 11,476 | 106.7 | |||||||||||||||
| Mutual funds | 6,285 | 6,028 | 4.3 | 6,285 | 101.2 | |||||||||||||||
| Ratios (%), operating means and customers | ||||||||||||||||||||
| RoTE | 22.2 | (0.5) | 22.4 | (16.7) | ||||||||||||||||
| RoTE (post-AT1) | 21.6 | (0.5) | 19.5 | (16.9) | ||||||||||||||||
| Efficiency ratio | 42.9 | (1.3) | 43.5 | 2.9 | ||||||||||||||||
| NPL ratio | 3.76 | 1.44 | 3.76 | 2.25 | ||||||||||||||||
| NPL coverage ratio | 121.0 | (34.4) | 121.0 | (24.2) | ||||||||||||||||
Number of branches4 | 405 | (1.0) | 405 | (0.2) | ||||||||||||||||
| Number of total customers (thousands) | 5,321 | 2.1 | 5,321 | 7.8 | ||||||||||||||||
| Number of active customers (thousands) | 3,666 | 0.6 | 3,666 | 2.1 | ||||||||||||||||
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
4. In Argentina, we have included the CartaSur points of sale and the banking service points in June 2025 figures and all previous periods.
January - June 2025 | | 75 | ||||||
Significant events Key consolidated data Business model | Group financial information | Financial information by segment | Sustainability Corporate governance | Appendix | Index | ||||||||||||||||||||||||||||||
| Information by segment | |||||||||||||||||||||||||||||||||||
| Rest of the Group | |||||||||||||||||||||||
| EUR million | |||||||||||||||||||||||
| / | Q1'25 | / | H1'24 | ||||||||||||||||||||
| Underlying income statement | Q2'25 | % | % excl. FX | H1'25 | % | % excl. FX | |||||||||||||||||
| Net interest income | 272 | 8.8 | 14.3 | 522 | 37.7 | 46.9 | |||||||||||||||||
| Net fee income | 224 | 9.2 | 13.2 | 428 | 25.1 | 28.4 | |||||||||||||||||
Gains (losses) on financial transactions 1 | 59 | 16.6 | 27.8 | 109 | (38.0) | (35.8) | |||||||||||||||||
| Other operating income | 12 | (38.8) | (36.1) | 32 | 174.5 | 173.7 | |||||||||||||||||
| Total income | 566 | 7.9 | 13.2 | 1,091 | 20.0 | 25.4 | |||||||||||||||||
| Administrative expenses and amortizations | (405) | (0.9) | 2.3 | (814) | 4.5 | 6.6 | |||||||||||||||||
| Net operating income | 161 | 39.3 | 53.3 | 277 | 113.7 | 159.7 | |||||||||||||||||
| Net loan-loss provisions | (41) | (41.0) | (37.2) | (112) | 3.0 | 9.4 | |||||||||||||||||
| Other gains (losses) and provisions | (39) | — | — | (36) | (87.3) | (87.2) | |||||||||||||||||
| Profit before tax | 80 | 65.7 | 99.9 | 129 | — | — | |||||||||||||||||
| Tax on profit | (16) | (37.3) | (22.9) | (42) | 96.7 | 134.6 | |||||||||||||||||
| Profit from continuing operations | 64 | 181.4 | 249.3 | 87 | 0.0 | — | |||||||||||||||||
| Net profit from discontinued operations | — | — | — | — | — | — | |||||||||||||||||
| Consolidated profit | 64 | 181.4 | 249.3 | 87 | 0.0 | — | |||||||||||||||||
| Non-controlling interests | 4 | — | — | 4 | 142.0 | 128.7 | |||||||||||||||||
| Underlying attributable profit to the parent | 68 | 199.9 | 271.7 | 91 | — | — | |||||||||||||||||
| Balance sheet | |||||||||||||||||||||||
| Loans and advances to customers | 23,316 | (5.5) | 0.4 | 23,316 | (10.4) | (3.6) | |||||||||||||||||
| Cash, central banks and credit institutions | 6,764 | 3.9 | 8.0 | 6,764 | 11.0 | 17.6 | |||||||||||||||||
| Debt instruments | 5,281 | (58.3) | (57.6) | 5,281 | (56.2) | (55.0) | |||||||||||||||||
| Other financial assets | 2,595 | 5.1 | 10.7 | 2,595 | (31.2) | (26.2) | |||||||||||||||||
| Other asset accounts | 3,149 | 8.3 | 9.8 | 3,149 | (21.6) | (19.2) | |||||||||||||||||
| Total assets | 41,104 | (16.5) | (12.8) | 41,104 | (20.9) | (16.2) | |||||||||||||||||
| Customer deposits | 21,677 | (4.9) | 0.6 | 21,677 | 15.9 | 25.2 | |||||||||||||||||
| Central banks and credit institutions | 9,077 | (48.5) | (47.0) | 9,077 | (60.8) | (59.3) | |||||||||||||||||
| Marketable debt securities | 2,564 | 163.4 | 172.7 | 2,564 | 219.2 | 248.5 | |||||||||||||||||
| Other financial liabilities | 2,317 | (1.6) | 3.3 | 2,317 | (32.1) | (26.9) | |||||||||||||||||
| Other liabilities accounts | 1,266 | (15.0) | (13.1) | 1,266 | (20.7) | (17.8) | |||||||||||||||||
| Total liabilities | 36,900 | (18.4) | (14.8) | 36,900 | (22.6) | (18.1) | |||||||||||||||||
| Total equity | 4,204 | 5.1 | 10.1 | 4,204 | (2.4) | 3.9 | |||||||||||||||||
| Memorandum items: | |||||||||||||||||||||||
Gross loans and advances to customers 2 | 23,751 | (5.6) | 0.3 | 23,751 | (9.8) | (2.8) | |||||||||||||||||
| Customer funds | 37,351 | (1.5) | 2.9 | 37,351 | 19.6 | 27.2 | |||||||||||||||||
Customer deposits 3 | 21,455 | (4.9) | 0.6 | 21,455 | 17.4 | 27.0 | |||||||||||||||||
| Mutual funds | 15,895 | 3.5 | 6.2 | 15,895 | 22.8 | 27.4 | |||||||||||||||||
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
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| APMs | |||||||||||||||||||||||||||||||||||
Alternative performance measures (APMs)
In addition to the financial information prepared under IFRS, this consolidated directors’ report contains financial measures that constitute alternative performance measures (APMs) to comply with the guidelines on alternative performance measures issued by the European Securities and Markets Authority on 5 October 2015 and non-IFRS measures.
The financial measures contained in this consolidated directors’ report that qualify as APMs and non-IFRS measures have been calculated using our financial information but are not defined or detailed in the applicable financial information framework or under IFRS and therefore have neither been audited nor are susceptible to being fully audited.
We use these APMs and non-IFRS measures when planning, monitoring and evaluating our performance. We consider these APMs and non-IFRS financial measures to be useful metrics for management and investors to facilitate operating performance comparisons from period to period. While we believe that these APMs and non-IFRS financial measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant as a substitute of IFRS measures. In addition, the way in which Santander defines and calculates these APMs and non-IFRS measures may differ from the calculations used by other companies with similar measures and, therefore, may not be comparable.
The APMs and non-IFRS measures we use in this document can be categorized as follows:
Underlying results
In addition to IFRS results measures, we present some results measures which are non-IFRS and which we refer to as
underlying measures. These measures allow in our view a better year-on-year comparability given that they exclude items outside the ordinary performance of our business (e.g. capital gains, write-downs, impairment of goodwill) or certain line items have been reclassified in the underlying ("adjusted") income statement, as their impact on profit is zero, to facilitate comparisons with prior quarters and better understand the trends in the business.
In addition, in the "Financial information by segment" section, covering the primary and secondary segments, results are presented only on an underlying basis in accordance with IFRS 8, and reconciled on an aggregate basis to our IFRS consolidated results to the consolidated financial statements, which are set out below.
As a result of the Poland disposal and in accordance with IFRS 5 requirements, in the statutory income statement, the results associated with the business subject to the Poland disposal are reported under a single line in the consolidated income statement — 'profit/(loss) after tax from discontinued operations' — for results corresponding to both 2025 and 2024.
However, in the underlying income statement, the results from Poland continue to be reported line by line and disaggregated, as they were in previous quarterly disclosures, given the management of Santander Polska remains unchanged until the Poland disposal is completed. This reporting approach is consistent with the information used internally in management reporting, as well as with other public Group disclosures.
| Reconciliation of underlying results to statutory results | ||||||||||||||
| EUR million | ||||||||||||||
| January-June 2025 | ||||||||||||||
| Statutory results | Adjustments related to the Poland disposal | Other adjustments | Underlying results | |||||||||||
| Net interest income | 21,211 | 1,505 | — | 22,716 | ||||||||||
| Net fee income | 6,342 | 342 | — | 6,684 | ||||||||||
Gains (losses) on financial transactions 1 | 1,032 | 37 | — | 1,069 | ||||||||||
| Other operating income | 597 | (56) | — | 541 | ||||||||||
| Total income | 29,182 | 1,828 | — | 31,010 | ||||||||||
| Administrative expenses and amortizations | (12,364) | (501) | — | (12,865) | ||||||||||
| Net operating income | 16,818 | 1,327 | — | 18,145 | ||||||||||
| Net loan-loss provisions | (6,524) | (121) | 467 | (6,178) | ||||||||||
| Other gains (losses) and provisions | (1,190) | (243) | (231) | (1,664) | ||||||||||
| Profit before tax | 9,104 | 963 | 236 | 10,303 | ||||||||||
| Tax on profit | (2,367) | (237) | (210) | (2,814) | ||||||||||
| Profit from continuing operations | 6,737 | 726 | 26 | 7,489 | ||||||||||
| Net profit from discontinued operations | 726 | (726) | — | — | ||||||||||
| Consolidated profit | 7,463 | — | 26 | 7,489 | ||||||||||
| Non-controlling interests | (630) | — | (26) | (656) | ||||||||||
| Profit attributable to the parent | 6,833 | — | — | 6,833 | ||||||||||
1. Includes exchange differences.
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Explanation of adjustments:
•In accordance with IFRS 5 requirements, in the statutory income statement in H1 2025, results subject to the Poland disposal have been reported under 'discontinued operations'. However, in the underlying income statement the results from Poland have been reclassified so that they are reported line by line and disaggregated in each of the corresponding line items.
•A capital gain, that falls outside the ordinary course of our business, in Q2 2025 of EUR 231 million from the sale of Santander’s remaining 30.5% stake in CACEIS.
•A one-off charge of EUR 467 million in Q2 2025 (EUR 231 million net of tax and minority interests), which strengthens the balance sheet after having updated macroeconomic parameters in Brazil’s credit provisioning models.
| Reconciliation of underlying results to statutory results | ||||||||||||||
| EUR million | ||||||||||||||
| January-June 2024 | ||||||||||||||
| Statutory results | Adjustments related to the Poland disposal | Other adjustments | Underlying results | |||||||||||
| Net interest income | 22,056 | 1,401 | — | 23,457 | ||||||||||
| Net fee income | 6,162 | 315 | — | 6,477 | ||||||||||
Gains (losses) on financial transactions 1 | 931 | 26 | — | 957 | ||||||||||
| Other operating income | (114) | (62) | 335 | 159 | ||||||||||
| Total income | 29,035 | 1,680 | 335 | 31,050 | ||||||||||
| Administrative expenses and amortizations | (12,483) | (430) | — | (12,913) | ||||||||||
| Net operating income | 16,552 | 1,250 | 335 | 18,137 | ||||||||||
| Net loan-loss provisions | (6,293) | (302) | 352 | (6,243) | ||||||||||
| Other gains (losses) and provisions | (1,535) | (164) | (687) | (2,386) | ||||||||||
| Profit before tax | 8,724 | 784 | — | 9,508 | ||||||||||
| Tax on profit | (2,707) | (209) | — | (2,916) | ||||||||||
| Profit from continuing operations | 6,017 | 575 | — | 6,592 | ||||||||||
| Net profit from discontinued operations | 575 | (575) | — | — | ||||||||||
| Consolidated profit | 6,592 | — | — | 6,592 | ||||||||||
| Non-controlling interests | (533) | — | — | (533) | ||||||||||
| Profit attributable to the parent | 6,059 | — | — | 6,059 | ||||||||||
1. Includes exchange differences.
Explanation of adjustments:
•In accordance with IFRS 5 requirements, in the statutory income statement in H1 2024, results subject to the Poland disposal have been reported under 'discontinued operations'. However, in the underlying income statement the results from Poland have been reclassified so that they are reported line by line and disaggregated in each of the corresponding line items.
•Temporary levy on revenue in Spain in Q1 2024, totalling EUR 335 million, which was reclassified from total income to other gains (losses) and provisions.
•Provisions which strengthen the balance sheet in Brazil of EUR 352 million in Q2 2024 (EUR 174 million net of tax and minority interests).
Note: regarding the Group’s consolidated balance sheet, in accordance with IFRS 5 requirements and solely in the balance sheet as at 30 June 2025, the assets associated with the Poland disposal are classified under 'non-current assets held for sale'. This line item consolidates the following: cash, cash balances at central banks and other deposits on demand: EUR 2,451 million; financial assets held for trading: EUR 1,793 million; financial assets designated at fair value through other comprehensive income: EUR 6,798 million; financial assets at amortized cost: EUR 51,424 million; intangible assets: EUR 1,374 million; tax assets: EUR 900 million; and other assets: EUR 1,156 million. Likewise, the related liabilities are aggregated under 'liabilities associated with non-current assets held for sale'. This line item consolidates the following: financial liabilities held for trading: EUR 989 million; financial liabilities at amortized cost: EUR 56,420 million; provisions: EUR 541 million; tax liabilities: EUR 940 million; and other liabilities: EUR 471 million. | ||||||||
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Ratios
All profitability, efficiency, credit quality and other metrics included in this 'Alternative performance measures' section have been calculated including Poland, as they were in previous quarterly disclosures given the management of Santander Polska remains unchanged until the Poland disposal is completed. This reporting approach is consistent with the information used internally in management reporting, as well as with other public Group disclosures. However, if we were to exclude Poland, the Group's main management ratios would not be materially affected. | ||||||||
Profitability and efficiency ratios
The purpose of the profitability ratios is to measure the ratio of profit to equity, to tangible equity, to assets and to risk-weighted assets, while the efficiency ratio measures how much general administrative expenses (personnel and other) and amortization costs are needed to generate revenue.
Additionally, goodwill adjustments have been removed from the RoTE numerator as, since they are not considered in the denominator, we believe this calculation is more correct.
| Ratio | Formula | Relevance of the metric | ||||||||||||
| RoE | Profit attributable to the parent (annualized) | This ratio measures the return that shareholders obtain on the funds invested in the bank and as such measures the company's ability to pay shareholders. | ||||||||||||
| (Return on equity) | Average stockholders’ equity 1 (excl. minority interests) | |||||||||||||
| RoTE | Profit attributable to the parent (annualized)2 | This indicator is used to evaluate the profitability of the company as a percentage of its tangible equity. It's measured as the return that shareholders receive as a percentage of the funds invested in the entity less intangible assets. | ||||||||||||
| (Return on tangible equity) | Average stockholders' equity 1 (excl. minority interests) - intangible assets | |||||||||||||
| RoTE (post-AT1) | Profit attributable to the parent minus AT1 costs (annualized)2 | As with RoTE, this indicator is used to assess the profitability of a company as a percentage of its tangible equity, but the cost of AT1 issuances is deduced from the numerator. This is the definition of RoTE that is commonly used as a measure of profitability over tangible equity. | ||||||||||||
| (Return on tangible equity) | Average stockholders' equity 1 (excl. minority interests) - intangible assets | |||||||||||||
| RoA | Consolidated profit (annualized) | This metric measures the profitability of a company as a percentage of its total assets. It is an indicator that reflects the efficiency of the bank's total assets in generating profit over a given period. | ||||||||||||
| (Return on assets) | Average total assets | |||||||||||||
| RoRWA | Consolidated profit (annualized) | The return adjusted for risk is a derivative of the RoA metric. The difference is that RoRWA measures profit in relation to the bank's risk-weighted assets. | ||||||||||||
| (Return on risk-weighted assets) | Average risk-weighted assets | |||||||||||||
| Efficiency ratio | Operating expenses 3 | One of the most commonly used indicators when comparing productivity of different financial entities. It measures the amount of resources used to generate the bank's total income. | ||||||||||||
| Total income | ||||||||||||||
1. Stockholders’ equity = Capital and Reserves + Accumulated other comprehensive income + Profit attributable to the parent + Dividends.
2. Excluding the adjustment to the valuation of goodwill.
3. Operating expenses = Administrative expenses + amortizations.
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Profitability and efficiency 1, 2 , 3(EUR million and %) | Q2'25 | Q1'25 | H1'25 | H1'24 | ||||||||||
| RoE | 13.7 | % | 13.4 | % | 13.6 | % | 12.6 | % | ||||||
| Profit attributable to the parent (annualized) | 13,720 | 13,610 | 13,665 | 12,118 | ||||||||||
| Average stockholders' equity (excluding minority interests) | 99,904 | 101,501 | 100,703 | 96,151 | ||||||||||
| RoTE | 16.9 | % | 16.6 | % | 16.7 | % | 15.9 | % | ||||||
| Profit attributable to the parent (annualized) | 13,720 | 13,610 | 13,665 | 12,118 | ||||||||||
| (-) Goodwill impairment | -1 | — | -1 | -2 | ||||||||||
| Profit attributable to the parent excluding goodwill impairment (annualized) | 13,722 | 13,610 | 13,666 | 12,120 | ||||||||||
| Average stockholders' equity (excluding minority interests) | 99,904 | 101,501 | 100,703 | 96,151 | ||||||||||
| (-) Average intangible assets | 18,700 | 19,359 | 19,030 | 19,755 | ||||||||||
| Average stockholders' equity (excl. minority interests) - intangible assets | 81,204 | 82,142 | 81,673 | 76,396 | ||||||||||
| RoTE post-AT1 | 16.2 | % | 15.8 | % | 16.0 | % | 15.1 | % | ||||||
| Profit attributable to the parent (annualized) | 13,720 | 13,610 | 13,665 | 12,118 | ||||||||||
| (-) AT1 costs (annualized) | 602 | 638 | 620 | 619 | ||||||||||
| Profit attributable to the parent excluding AT1 costs (annualized) | 13,118 | 12,971 | 13,045 | 11,499 | ||||||||||
| (-) Goodwill impairment | -1 | — | -1 | -2 | ||||||||||
| Profit attributable to the parent minus AT1 costs (annualized; excluding goodwill impairment) | 13,120 | 12,971 | 13,046 | 11,501 | ||||||||||
| Average stockholders' equity (excluding minority interests) | 99,904 | 101,501 | 100,703 | 96,151 | ||||||||||
| (-) Average intangible assets | 18,700 | 19,359 | 19,030 | 19,755 | ||||||||||
| Average stockholders' equity (excl. minority interests) - intangible assets | 81,204 | 82,142 | 81,673 | 76,396 | ||||||||||
| RoA | 0.82 | % | 0.81 | % | 0.81 | % | 0.74 | % | ||||||
| Consolidated profit (annualized) | 14,962 | 14,966 | 14,951 | 13,184 | ||||||||||
| Average total assets | 1,815,203 | 1,855,729 | 1,835,466 | 1,792,428 | ||||||||||
| RoRWA | 2.38 | % | 2.34 | % | 2.36 | % | 2.07 | % | ||||||
| Underlying consolidated profit (annualized) | 14,988 | 14,966 | 14,977 | 13,184 | ||||||||||
| Average risk-weighted assets | 630,054 | 640,837 | 635,445 | 636,147 | ||||||||||
| Efficiency ratio | 41.2 | % | 41.8 | % | 41.5 | % | 41.6 | % | ||||||
| Underlying operating expenses | 6,376 | 6,489 | 12,865 | 12,913 | ||||||||||
| Operating expenses | 6,108 | 6,256 | 12,364 | 12,483 | ||||||||||
| Adjustments to operating expenses for items outside ordinary course of businesses | 268 | 233 | 501 | 430 | ||||||||||
| Underlying total income | 15,473 | 15,537 | 31,010 | 31,050 | ||||||||||
| Total income | 14,503 | 14,679 | 29,182 | 29,035 | ||||||||||
| Adjustments to total income for items outside ordinary course of businesses | 970 | 858 | 1,828 | 2,015 | ||||||||||
1.Averages included in the RoE, RoTE, RoTE (post-AT1), RoA and RoRWA denominators are calculated using the monthly average over the period, which we believe should not differ materially from using daily balances. | ||||||||||||||
2.The risk-weighted assets included in the denominator of the RoRWA metric are calculated in line with the criteria laid out in the CRR (Capital Requirements Regulation). | ||||||||||||||
3.For periods less than one year, and if there are results outside the ordinary course of our business, the profit used to calculate RoA is the annualized underlying consolidated profit, to which said results are added without annualizing. | ||||||||||||||
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| APMs | |||||||||||||||||||||||||||||||||||
| Ratio | Formula | Relevance of the metric | ||||||||||||
| Global business RoTE | Profit attributable to the parent excluding goodwill impairment (annualized) | This indicator is used to evaluate the profitability of the company as a percentage of its tangible equity. It's measured as the return that shareholders receive as a percentage of the funds invested in the entity less intangible assets. | ||||||||||||
Average stockholders' equity (excl. minority interests) - intangible assets 1 | ||||||||||||||
| Global business and country RoTE (post-AT1) | Profit attributable to the parent minus AT1 costs2 (annualized; excluding goodwill impairment) | As with RoTE, this indicator is used to assess the profitability of a company as a percentage of its tangible equity, but the cost of AT1 issuances is deduced from the numerator. This is the definition of RoTE that is commonly used as a measure of profitability over tangible equity. | ||||||||||||
Average stockholders' equity (excl. minority interests) - intangible assets 1 | ||||||||||||||
1.For global businesses, tangible equity is allocated according to RWA consumption.
2.For both global businesses and countries, AT1 costs are allocated according to RWA consumption.
RoTE (EUR million and %) | |||||||||||||||||||||||
| H1'25 | H1'24 | ||||||||||||||||||||||
| % | Numerator | Denominator | % | Numerator | Denominator | ||||||||||||||||||
| Retail & Commercial Banking | 17.9 | 7,375 | 41,184 | 17.8 | 6,749 | 38,012 | |||||||||||||||||
| Digital Consumer Bank | 11.2 | 2,085 | 18,577 | 12.9 | 2,139 | 16,645 | |||||||||||||||||
| Corporate & Investment Banking | 21.6 | 3,069 | 14,229 | 18.9 | 2,810 | 14,875 | |||||||||||||||||
| Wealth Management & Insurance | 68.1 | 1,896 | 2,785 | 75.1 | 1,589 | 2,115 | |||||||||||||||||
| Payments | 23.2 | 669 | 2,886 | 1.9 | 51 | 2,727 | |||||||||||||||||
| PagoNxt | |||||||||||||||||||||||
| Cards | 26.0 | 638 | 2,458 | 27.9 | 659 | 2,366 | |||||||||||||||||
| Spain | 26.1 | 4,516 | 17,272 | 20.4 | 3,512 | 17,215 | |||||||||||||||||
| United Kingdom | 9.4 | 1,120 | 11,947 | 10.8 | 1,260 | 11,633 | |||||||||||||||||
| Portugal | 31.5 | 1,050 | 3,329 | 28.8 | 1,125 | 3,903 | |||||||||||||||||
| Poland | 23.2 | 913 | 3,933 | 19.4 | 773 | 3,984 | |||||||||||||||||
| DCB Europe | 7.7 | 792 | 10,230 | 8.9 | 905 | 10,170 | |||||||||||||||||
| US | 11.6 | 1,677 | 14,490 | 9.2 | 1,329 | 14,370 | |||||||||||||||||
| Mexico | 21.4 | 1,588 | 7,423 | 19.1 | 1,680 | 8,778 | |||||||||||||||||
| Brazil | 14.9 | 1,994 | 13,343 | 15.9 | 2,284 | 14,404 | |||||||||||||||||
| Chile | 20.2 | 738 | 3,651 | 13.7 | 505 | 3,685 | |||||||||||||||||
| Argentina | 22.4 | 524 | 2,337 | 39.1 | 532 | 1,359 | |||||||||||||||||
Numerator: profit attributable to the parent excluding goodwill impairment annualized (Excluding the adjustment to the valuation of goodwill).
Denominator: average stockholders' equity (excluding minority interests) - intangible assets.
PagoNxt's RoTE is not provided as we do not consider it a relevant metric to measure performance in this type of business.
PagoNxt's RoTE is not provided as we do not consider it a relevant metric to measure performance in this type of business.
RoTE (post-AT1) (EUR million and %) | |||||||||||||||||||||||
| H1'25 | H1'24 | ||||||||||||||||||||||
| % | Numerator | Denominator | % | Numerator | Denominator | ||||||||||||||||||
| Retail & Commercial Banking | 17.2 | 7,079 | 41,184 | 17.0 | 6,460 | 38,012 | |||||||||||||||||
| Digital Consumer Bank | 10.4 | 1,930 | 18,577 | 11.9 | 1,986 | 16,645 | |||||||||||||||||
| Corporate & Investment Banking | 20.8 | 2,962 | 14,229 | 18.1 | 2,693 | 14,875 | |||||||||||||||||
| Wealth Management & Insurance | 67.3 | 1,875 | 2,785 | 74.3 | 1,572 | 2,115 | |||||||||||||||||
| Payments | 22.4 | 647 | 2,886 | 1.1 | 30 | 2,727 | |||||||||||||||||
| PagoNxt | |||||||||||||||||||||||
| Cards | 25.3 | 621 | 2,458 | 27.2 | 643 | 2,366 | |||||||||||||||||
| Spain | 25.3 | 4,376 | 17,272 | 19.6 | 3,373 | 17,215 | |||||||||||||||||
| United Kingdom | 8.9 | 1,060 | 11,947 | 10.3 | 1,201 | 11,633 | |||||||||||||||||
| Portugal | 31.1 | 1,034 | 3,329 | 28.4 | 1,110 | 3,903 | |||||||||||||||||
| Poland | 22.5 | 886 | 3,933 | 18.8 | 747 | 3,984 | |||||||||||||||||
| DCB Europe | 6.9 | 706 | 10,230 | 8.1 | 820 | 10,170 | |||||||||||||||||
| US | 11.0 | 1,591 | 14,490 | 8.7 | 1,244 | 14,370 | |||||||||||||||||
| Mexico | 21.0 | 1,558 | 7,423 | 18.7 | 1,645 | 8,778 | |||||||||||||||||
| Brazil | 14.2 | 1,899 | 13,343 | 15.1 | 2,181 | 14,404 | |||||||||||||||||
| Chile | 19.5 | 711 | 3,651 | 13.0 | 479 | 3,685 | |||||||||||||||||
| Argentina | 21.8 | 510 | 2,337 | 38.7 | 526 | 1,359 | |||||||||||||||||
Denominator: average stockholders' equity (excluding minority interests) - intangible assets.
PagoNxt's RoTE is not provided as we do not consider it a relevant metric to measure performance in this type of business.
PagoNxt's RoTE is not provided as we do not consider it a relevant metric to measure performance in this type of business.
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Efficiency ratio (EUR million and %) | |||||||||||||||||||||||
| H1'25 | H1'24 | ||||||||||||||||||||||
| % | Numerator | Denominator | % | Numerator | Denominator | ||||||||||||||||||
| Retail & Commercial Banking | 39.4 | 6,188 | 15,710 | 39.2 | 6,383 | 16,277 | |||||||||||||||||
| Digital Consumer Bank | 41.5 | 2,664 | 6,425 | 40.6 | 2,617 | 6,449 | |||||||||||||||||
| Corporate & Investment Banking | 43.7 | 1,903 | 4,354 | 43.3 | 1,811 | 4,178 | |||||||||||||||||
| Wealth Management & Insurance | 35.7 | 726 | 2,032 | 37.2 | 684 | 1,837 | |||||||||||||||||
| Payments | 42.2 | 1,200 | 2,840 | 46.8 | 1,244 | 2,659 | |||||||||||||||||
| PagoNxt | 89.8 | 576 | 641 | 103.0 | 601 | 583 | |||||||||||||||||
| Cards | 28.4 | 624 | 2,199 | 31.0 | 643 | 2,075 | |||||||||||||||||
| Spain | 34.0 | 2,099 | 6,167 | 34.1 | 2,065 | 6,065 | |||||||||||||||||
| United Kingdom | 54.0 | 1,427 | 2,642 | 57.7 | 1,451 | 2,516 | |||||||||||||||||
| Portugal | 27.1 | 269 | 992 | 23.4 | 267 | 1,142 | |||||||||||||||||
| Poland | 27.8 | 512 | 1,842 | 27.2 | 466 | 1,711 | |||||||||||||||||
| DCB Europe | 46.9 | 1,326 | 2,827 | 46.2 | 1,319 | 2,854 | |||||||||||||||||
| US | 49.5 | 1,944 | 3,927 | 50.5 | 1,903 | 3,769 | |||||||||||||||||
| Mexico | 41.4 | 1,245 | 3,010 | 41.4 | 1,343 | 3,244 | |||||||||||||||||
| Brazil | 32.7 | 2,061 | 6,309 | 32.4 | 2,265 | 6,984 | |||||||||||||||||
| Chile | 34.3 | 484 | 1,410 | 39.2 | 465 | 1,187 | |||||||||||||||||
| Argentina | 43.5 | 498 | 1,145 | 40.6 | 414 | 1,020 | |||||||||||||||||
Denominator: underlying total income.
Credit risk indicators
The credit risk indicators measure the quality of the credit portfolio and the percentage of non-performing loans covered by provisions.
| Ratio | Formula | Relevance of the metric | ||||||||||||
| NPL ratio (Non-performing loans ratio) | Credit impaired customer loans and advances, guarantees and undrawn balances | The NPL ratio is an important variable regarding financial institutions' activity since it gives an indication of the level of risk the entities are exposed to. It calculates risks that are, in accounting terms, declared to be credit impaired as a percentage of the total outstanding amount of customer credit and contingent liabilities. | ||||||||||||
Total Risk 1 | ||||||||||||||
| NPL coverage ratio | Total allowances to cover impairment losses on customer loans and advances, guarantees and undrawn balances | The NPL coverage ratio is a fundamental metric in the financial sector. It reflects the level of provisions as a percentage of the credit impaired assets. Therefore, it is a good indicator of the entity's solvency against customer defaults both present and future. | ||||||||||||
| Credit impaired customer loans and advances, guarantees and undrawn balances | ||||||||||||||
| Cost of risk | Allowances for loan-loss provisions over the last 12 months | This ratio quantifies loan-loss provisions arising from credit risk over a defined period of time for a given loan portfolio. As such, it acts as an indicator of credit quality. | ||||||||||||
| Average loans and advances to customers over the last 12 months | ||||||||||||||
1. Total risk = non-impaired and impaired customer loans and advances and guarantees + impaired undrawn customer balances.
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Credit risk (I) (EUR million and %) | |||||||||||
| Jun-25 | Mar-25 | Jun-24 | |||||||||
| NPL ratio | 2.91 | % | 2.99 | % | 3.02 | % | |||||
| Credit impaired customer loans and advances, guarantees and undrawn balances | 33,395 | 34,992 | 35,091 | ||||||||
| Gross loans and advances to customers registered under the headings 'financial assets measured at amortized cost' and 'financial assets designated at fair value through profit or loss' classified in stage 3 (OCI), excluding POCI (Purchased or Originated Credit Impaired) | 31,681 | 33,400 | 33,362 | ||||||||
| POCI exposure (Purchased or Originated Credit Impaired) that is additionally impaired | 178 | 151 | 252 | ||||||||
| Customer guarantees and undrawn balances classified in stage 3 | 1,514 | 1,435 | 1,467 | ||||||||
| Doubtful exposure of loans and advances to customers at fair value through profit or loss | 22 | 6 | 10 | ||||||||
| Total risk | 1,148,243 | 1,168,468 | 1,163,654 | ||||||||
| Impaired and non-impaired gross loans and advances to customers | 1,070,722 | 1,086,686 | 1,088,220 | ||||||||
| Impaired and non-impaired customer guarantees and impaired undrawn customer balances | 77,521 | 81,782 | 75,434 | ||||||||
Credit risk (II) (EUR million and %) | |||||||||||
| Jun-25 | Mar-25 | Jun-24 | |||||||||
| NPL coverage ratio | 67.2 | % | 65.7 | % | 66.5 | % | |||||
| Total allowances to cover impairment losses on customer loans and advances, guarantees and undrawn balances | 22,441 | 22,980 | 23,323 | ||||||||
| Total allowances to cover impairment losses on loans and advances to customers measured at amortized cost and designated at fair value through OCI | 21,771 | 22,271 | 22,625 | ||||||||
| Total allowances to cover impairment losses on customer guarantees and undrawn balances | 670 | 709 | 698 | ||||||||
| Credit impaired customer loans and advances, guarantees and undrawn balances | 33,395 | 34,992 | 35,091 | ||||||||
| Gross loans and advances to customers registered under the headings 'financial assets measured at amortized cost' and 'financial assets designated at fair value through profit or loss' classified in stage 3 (OCI), excluding POCI (Purchased or Originated Credit Impaired) | 31,681 | 33,400 | 33,362 | ||||||||
| POCI exposure (Purchased or Originated Credit Impaired) that is additionally impaired | 178 | 151 | 252 | ||||||||
| Customer guarantees and undrawn balances classified in stage 3 | 1,514 | 1,435 | 1,467 | ||||||||
| Doubtful exposure of loans and advances to customers at fair value through profit or loss | 22 | 6 | 10 | ||||||||
| Cost of risk | 1.14 | % | 1.14 | % | 1.21 | % | |||||
| Underlying allowances for loan-loss provisions over the last 12 months | 12,268 | 12,369 | 12,930 | ||||||||
| Allowances for loan-loss provisions over the last 12 months | 12,408 | 12,270 | 12,980 | ||||||||
| Adjustments to loan-loss provisions for items outside ordinary course of businesses | -140 | 99 | -50 | ||||||||
| Average loans and advances to customers over the last 12 months | 1,079,967 | 1,082,207 | 1,064,870 | ||||||||
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| APMs | |||||||||||||||||||||||||||||||||||
NPL ratio (EUR million and %) | |||||||||||||||||||||||
| Jun-25 | Jun-24 | ||||||||||||||||||||||
| % | Numerator | Denominator | % | Numerator | Denominator | ||||||||||||||||||
| Retail & Commercial Banking | 3.06 | 19,396 | 634,591 | 3.14 | 20,588 | 655,507 | |||||||||||||||||
| Digital Consumer Bank | 4.97 | 10,521 | 211,670 | 4.81 | 10,281 | 213,668 | |||||||||||||||||
| Corporate & Investment Banking | 0.71 | 1,750 | 244,773 | 1.03 | 2,495 | 242,147 | |||||||||||||||||
| Wealth Management & Insurance | 0.96 | 248 | 25,817 | 1.08 | 256 | 23,757 | |||||||||||||||||
| Payments | 5.11 | 1,284 | 25,114 | 5.16 | 1,170 | 22,676 | |||||||||||||||||
| PagoNxt | |||||||||||||||||||||||
| Cards | 5.22 | 1,245 | 23,864 | 5.20 | 1,139 | 21,920 | |||||||||||||||||
| Spain | 2.15 | 6,490 | 301,942 | 2.91 | 8,365 | 287,919 | |||||||||||||||||
| United Kingdom | 1.25 | 3,028 | 241,761 | 1.46 | 3,688 | 252,420 | |||||||||||||||||
| Portugal | 2.25 | 961 | 42,718 | 2.42 | 984 | 40,669 | |||||||||||||||||
| Poland | 3.38 | 1,554 | 45,919 | 3.40 | 1,438 | 42,324 | |||||||||||||||||
| DCB Europe | 2.62 | 3,739 | 142,860 | 2.31 | 3,210 | 138,698 | |||||||||||||||||
| US | 4.65 | 6,245 | 134,416 | 4.33 | 6,435 | 148,724 | |||||||||||||||||
| Mexico | 2.93 | 1,418 | 48,408 | 2.78 | 1,452 | 52,175 | |||||||||||||||||
| Brazil | 6.61 | 6,664 | 100,814 | 5.96 | 6,502 | 109,033 | |||||||||||||||||
| Chile | 5.43 | 2,288 | 42,140 | 5.12 | 2,275 | 44,429 | |||||||||||||||||
| Argentina | 3.76 | 349 | 9,272 | 1.51 | 89 | 5,882 | |||||||||||||||||
Numerator: credit impaired customer loans and advances, guarantees and undrawn balances.
Denominator: total risk.
PagoNxt's NPL ratio is not provided as we do not consider it a relevant metric for this type of business.
PagoNxt's NPL ratio is not provided as we do not consider it a relevant metric for this type of business.
NPL coverage ratio (EUR million and %) | |||||||||||||||||||||||
| Jun-25 | Jun-24 | ||||||||||||||||||||||
| % | Numerator | Denominator | % | Numerator | Denominator | ||||||||||||||||||
| Retail & Commercial Banking | 59.8 | 11,607 | 19,396 | 61.6 | 12,678 | 20,588 | |||||||||||||||||
| Digital Consumer Bank | 76.4 | 8,041 | 10,521 | 75.9 | 7,798 | 10,281 | |||||||||||||||||
| Corporate & Investment Banking | 45.1 | 789 | 1,750 | 36.0 | 898 | 2,495 | |||||||||||||||||
| Wealth Management & Insurance | 70.3 | 175 | 248 | 59.1 | 151 | 256 | |||||||||||||||||
| Payments | 131.2 | 1,684 | 1,284 | 144.3 | 1,689 | 1,170 | |||||||||||||||||
| PagoNxt | |||||||||||||||||||||||
| Cards | 133.6 | 1,663 | 1,245 | 146.2 | 1,665 | 1,139 | |||||||||||||||||
| Spain | 53.2 | 3,453 | 6,490 | 50.1 | 4,190 | 8,365 | |||||||||||||||||
| United Kingdom | 31.0 | 939 | 3,028 | 28.5 | 1,050 | 3,688 | |||||||||||||||||
| Portugal | 82.4 | 792 | 961 | 79.9 | 786 | 984 | |||||||||||||||||
| Poland | 63.8 | 991 | 1,554 | 75.1 | 1,080 | 1,438 | |||||||||||||||||
| DCB Europe | 82.3 | 3,078 | 3,739 | 85.4 | 2,741 | 3,210 | |||||||||||||||||
| US | 63.1 | 3,942 | 6,245 | 67.9 | 4,369 | 6,435 | |||||||||||||||||
| Mexico | 99.4 | 1,409 | 1,418 | 102.5 | 1,488 | 1,452 | |||||||||||||||||
| Brazil | 85.1 | 5,673 | 6,664 | 90.4 | 5,875 | 6,502 | |||||||||||||||||
| Chile | 49.8 | 1,141 | 2,288 | 53.1 | 1,208 | 2,275 | |||||||||||||||||
| Argentina | 121.0 | 422 | 349 | 145.2 | 129 | 89 | |||||||||||||||||
Numerator: total allowances to cover impairment losses on customer loans and advances, guarantees and undrawn balances.
Denominator: credit impaired customer loans and advances, guarantees and undrawn balances.
PagoNxt's coverage ratio is not provided as we do not consider it a relevant metric for this type of business.
PagoNxt's coverage ratio is not provided as we do not consider it a relevant metric for this type of business.
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| APMs | |||||||||||||||||||||||||||||||||||
Cost of risk (EUR million and %) | |||||||||||||||||||||||
| Jun-25 | Jun-24 | ||||||||||||||||||||||
| % | Numerator | Denominator | % | Numerator | Denominator | ||||||||||||||||||
| Retail & Commercial Banking | 0.89 | 5,589 | 624,559 | 1.03 | 6,515 | 635,273 | |||||||||||||||||
| Digital Consumer Bank | 2.09 | 4,444 | 212,852 | 2.17 | 4,496 | 207,326 | |||||||||||||||||
| Corporate & Investment Banking | 0.09 | 163 | 188,207 | 0.15 | 250 | 170,044 | |||||||||||||||||
| Wealth Management & Insurance | 0.20 | 47 | 24,303 | 0.07 | 15 | 22,773 | |||||||||||||||||
| Payments | 7.54 | 1,832 | 24,313 | 7.02 | 1,650 | 23,498 | |||||||||||||||||
| PagoNxt | |||||||||||||||||||||||
| Cards | 7.84 | 1,814 | 23,155 | 7.23 | 1,629 | 22,530 | |||||||||||||||||
| Spain | 0.47 | 1,200 | 254,467 | 0.56 | 1,377 | 245,194 | |||||||||||||||||
| United Kingdom | 0.05 | 115 | 250,146 | 0.08 | 205 | 249,276 | |||||||||||||||||
| Portugal | 0.00 | 0 | 39,248 | 0.12 | 45 | 37,991 | |||||||||||||||||
| Poland | 0.86 | 335 | 38,934 | 1.81 | 628 | 34,702 | |||||||||||||||||
| DCB Europe | 0.89 | 1,244 | 139,184 | 0.72 | 961 | 133,804 | |||||||||||||||||
| US | 1.69 | 2,365 | 140,020 | 2.06 | 2,758 | 133,863 | |||||||||||||||||
| Mexico | 2.53 | 1,163 | 45,876 | 2.71 | 1,334 | 49,273 | |||||||||||||||||
| Brazil | 4.71 | 4,455 | 94,496 | 4.77 | 4,859 | 101,828 | |||||||||||||||||
| Chile | 1.31 | 539 | 41,171 | 0.97 | 413 | 42,551 | |||||||||||||||||
| Argentina | 5.09 | 428 | 8,405 | 4.80 | 119 | 2,485 | |||||||||||||||||
Numerator: underlying allowances for loan-loss provisions over the last 12 months.
Denominator: average loans and advances to customers over the last 12 months.
PagoNxt's cost of risk is not provided as we do not consider it a relevant metric for this type of business.
PagoNxt's cost of risk is not provided as we do not consider it a relevant metric for this type of business.
Other indicators
The Group has a series of additional financial metrics which facilitate analysis of the underlying business trends and performance. It also has another set of sustainability indicators which enables us to track the progress of our Sustainability objectives.
| Ratio | Formula | Relevance of the metric | ||||||||||||
| TNAV per share | Tangible book value 1 | This is a very commonly used ratio used to measure the company's accounting value per share having deducted the intangible assets. It is useful in evaluating the amount each shareholder would receive if the company were to enter into liquidation and had to sell all the company's tangible assets. | ||||||||||||
| (Tangible net asset value per share) | Number of shares excluding treasury stock | |||||||||||||
| Price / tangible book value per share (X) | Share price | This is one of the most commonly used ratios by market participants for the valuation of listed companies both in absolute terms and relative to other entities. This ratio measures the relationship between the price paid for a company and its accounting equity value. | ||||||||||||
| TNAV per share | ||||||||||||||
LTD ratio2 | Net loans and advances to customers | This is an indicator of the bank's liquidity. It measures the total loans and advances to customers net of loan-loss provisions as a percentage of customer deposits. | ||||||||||||
| (Loan-to-deposit) | Customer deposits | |||||||||||||
Loans and advances (excl. reverse repos)2 | Gross loans and advances to customers excluding reverse repos | In order to aid analysis of the commercial banking activity, reverse repos are excluded as they are highly volatile treasury products. | ||||||||||||
Deposits (excl. repos)2 | Customer deposits excluding repos | In order to aid analysis of the commercial banking activity, repos are excluded as they are highly volatile treasury products. | ||||||||||||
| PAT + fees paid to SAN (in Wealth Management & Insurance) | Net profit + fees ceded by Santander Asset Management and Santander Insurance to the branch network, net of taxes, excluding Private Banking customers | Metric to assess Wealth Management & Insurance's total contribution to the Group's profit. | ||||||||||||
1.Tangible book value = Stockholders' equity (excl. minority interests) - intangible assets.
2.Includes Poland.
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| APMs | |||||||||||||||||||||||||||||||||||
Others (EUR million and %) | ||||||||||||||
| Jun-25 | Mar-25 | Jun-24 | ||||||||||||
| TNAV (tangible book value) per share | 5.50 | 5.46 | 4.94 | |||||||||||
| Tangible book value | 81,878 | 82,235 | 76,514 | |||||||||||
| Number of shares excl. treasury stock (million) | 14,884 | 15,052 | 15,492 | |||||||||||
| Price / Tangible book value per share (X) | 1.28 | 1.13 | 0.88 | |||||||||||
| Share price (euros) | 7.027 | 6.196 | 4.331 | |||||||||||
| TNAV (tangible book value) per share | 5.50 | 5.46 | 4.94 | |||||||||||
| Loan-to-deposit ratio | 99 | % | 98 | % | 103 | % | ||||||||
| Net loans and advances to customers | 1,048,951 | 1,064,416 | 1,065,596 | |||||||||||
| Customer deposits | 1,060,208 | 1,081,894 | 1,037,646 | |||||||||||
| Q2'25 | Q1'25 | H1'25 | H1'24 | |||||||||||
| PAT + After tax fees paid to SAN (in Wealth) (Constant EUR million) | 895 | 888 | 1,783 | 1,551 | ||||||||||
| Profit after tax | 505 | 491 | 997 | 805 | ||||||||||
| Net fee income net of tax | 390 | 396 | 786 | 746 | ||||||||||
| Sustainability indicators | ||||||||||||||
| Metric | Definition | Jun-25 | ||||||||||||
| Green finance raised and facilitated accumulated from 2019-2025 (EUR billion) | Nominal amount of project finance, financial advisory, project bonds, green bonds (DCM), export finance (ECA), mergers and acquisitions (M&A), and equity capital markets (ECM) transactions ranked by the SCFS panel and reported in the League Tables of Dealogic, Inframation News, TXF and Mergermarket since 2019. | 157.2 | ||||||||||||
| Socially responsible investment assets under management (SRI AuMs) (EUR billion) | Value corresponding to total volume of assets under management registered as article 8 - promoting ESG characteristics - and 9 - with explicit sustainability objectives - of the Sustainable Finance Disclosure Regulation (SFDR, EU Reg. 2019/2088) except for illiquid investments in Private Banking which are reported in terms of committed capital. It includes: i) assets managed or advised by Santander Asset Management (SAM) and other Group asset managers in the EU and, using equivalent criteria, in countries where SFDR does not apply; and ii) third party funds and assets advised deemed sustainable investments according to SFDR (Article 2.17) or using internal criteria as per SFICS (Sustainable Finance & Investment Classification System). | 111.1 | ||||||||||||
Note: targets were set before the publication of the European taxonomy in Q2 2023. Therefore, target definitions are not fully aligned with the taxonomy.
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| APMs | |||||||||||||||||||||||||||||||||||
Local currency measures
We make use of certain financial measures in local currency to help in the assessment of our ongoing operating performance. These non-IFRS financial measures include the results of operations of our subsidiary banks located outside the eurozone, excluding the impact of foreign exchange. Because changes in foreign currency exchange rates do not have an operating impact on the results, we believe that evaluating their performance on a local currency basis provides an additional and meaningful assessment of performance to both management and the company’s investors.
The Group presents, at both the Group level as well as the business unit level, the changes in the income statement as well as the changes excluding the exchange rate effect ("excluding FX" or "constant euros"), as it considers the latter facilitates analysis, since it enables business movements to be identified without taking into account the impact of converting each local currency into euros.
Said variations, excluding the impact of exchange rate movements, are calculated by converting income statement lines for the different business units comprising the Group into our presentation currency, the euro, applying the average exchange rate for H1 2025 to all periods contemplated in the analysis. We use this method for all countries with the exception of Argentina, where we use the exchange rate on the last working day of each period presented, given it is a hyperinflationary economy, to mitigate the distortions caused by the hyperinflation.
We present, at both the Group level as well as the business unit level, the changes in euros as well as the changes excluding the exchange rate effect ("excluding FX" or "constant euros") for loans and advances to customers excluding reverse repurchase agreements (repos) and customer funds (which comprise deposits and mutual funds) excluding repos. Additionally, we present changes in the main balance sheet lines of the Group's countries both in euros as well as the changes excluding the exchange rate effect. As with the income statement, the reason is to facilitate
analysis by isolating the changes in the balance sheet that are not caused by converting each local currency into euros.
These changes excluding the impact of exchange rate movements are calculated by converting the balances, into our presentation currency, the euro, applying the closing exchange rate on the last working day of June 2025 to all periods contemplated in the analysis. We use this method to calculate the variations for all countries with the exception of Argentina, where we use the exchange rate on the last working day of each period presented, given it is a hyperinflationary economy, to mitigate the distortions caused by the hyperinflation.
In Q2 2024, due to the significant divergence between the official exchange rate and other macroeconomic magnitudes in Argentina, mainly inflation, we began to apply an alternative exchange rate for the Argentine peso which reflected the exchange rate observed in transactions ordered between market participants under the prevailing economic conditions, such as the repatriation of dividends from businesses in Argentina.
Given the stabilization and improved macroeconomic outlook in the country, in Q4 2024 and Q1 2025 we used the dollar contado con liquidación rate (CCL) as a reference for this alternative exchange rate, which is the exchange rate resulting from the sale of local bonds denominated in Argentine pesos in US dollars (dual denomination peso/dollar bonds).
From Q2 2025, we once again apply the official exchange rate given that the value of the dollar CCL exchange rate does not significantly differ from other market rates or the official exchange rate following the lifting of currency controls and the removal of restrictions on the purchase of foreign currency for individuals in Argentina.
The average and period-end exchange rates for the main currencies in which the Group operates are set out in the table below.
| Exchange rates: 1 euro / currency parity | ||||||||||||||||||||
| Average (income statement) | Period-end (balance sheet) | |||||||||||||||||||
| H1'25 | H1'24 | Jun-25 | Mar-25 | Jun-24 | ||||||||||||||||
| US dollar | 1.092 | 1.081 | 1.175 | 1.081 | 1.071 | |||||||||||||||
| Pound sterling | 0.842 | 0.855 | 0.857 | 0.837 | 0.848 | |||||||||||||||
| Brazilian real | 6.286 | 5.490 | 6.405 | 6.196 | 5.943 | |||||||||||||||
| Mexican peso | 21.796 | 18.492 | 22.158 | 22.105 | 19.561 | |||||||||||||||
| Chilean peso | 1,042.620 | 1,016.087 | 1,095.928 | 1,029.745 | 1,011.373 | |||||||||||||||
Argentine peso1 | 1,401.188 | 1,426.270 | 1,498.930 | |||||||||||||||||
| Polish zloty | 4.230 | 4.316 | 4.242 | 4.189 | 4.308 | |||||||||||||||
1. Average exchange rates for the Argentine peso are not included since we use the exchange rate on the last working day of each period presented given it is a hyperinflationary economy. We apply the official ARS exchange rate except in the periods between Q2 2024 and Q1 2025, when we applied an alternative exchange rate for the Argentine peso that better reflected the evolution of inflation.
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Impact of inflation rate on the variations of operating expenses
Santander presents, for both the Group and the business units included in the primary and secondary segments: i) the changes in operating expenses in euros, ii) the changes excluding the exchange rate effect with the exception of Argentina which is calculated as described above in "Local currency measures", and iii) the changes excluding the exchange rate effect minus the effect of average inflation over the last twelve months except for Argentina as cost growth in euros should already largely reflect the effect of hyperinflation on exchange rates. The reason is that the two latter facilitate analysis for management purposes.
Inflation is calculated as the arithmetic average of the last twelve months for each country and, for the global businesses, as the weighted average the inflation rate of each country comprising the global business, weighted by each country's operating expenses. For the Group and the global businesses, we exclude the impact of inflation in Argentina from the calculation as cost growth in euros should already largely reflect the effect of hyperinflation on exchange rates.
The table below shows the average inflation rates calculated as indicated.
| Average inflation | |||||
| % | Average inflation last 12 months | ||||
Retail & Commercial Banking1 | 3.5 | ||||
Digital Consumer Bank1 | 2.5 | ||||
Corporate & Investment Banking1 | 3.0 | ||||
Wealth Management & Insurance1 | 2.9 | ||||
Payments1 | 3.3 | ||||
| Spain | 2.3 | ||||
| United Kingdom | 2.7 | ||||
| Portugal | 2.3 | ||||
| Poland | 4.6 | ||||
| DCB Europe | 2.2 | ||||
| US | 2.6 | ||||
| Mexico | 4.4 | ||||
| Brazil | 4.9 | ||||
| Chile | 4.5 | ||||
Total Group1 | 3.2 | ||||
1.Excluding the impact of inflation in Argentina.
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| Condensed consolidated financial statements | |||||||||||||||||||||||||||||||||||
Interim condensed consolidated financial statements
•Condensed consolidated balance sheet
•Condensed consolidated income statement
| NOTE: | The following financial information for the first six months of 2025 and 2024 (attached herewith) corresponds to the condensed consolidated financial statements prepared in accordance with the International Financial Reporting Standards. | ||||
| Interim condensed consolidated balance sheet | |||||||||||
| EUR million | |||||||||||
| ASSETS | Jun-25 | Dec-24 | Jun-24 | ||||||||
| Cash, cash balances at central banks and other deposits on demand | 175,555 | 192,208 | 156,234 | ||||||||
| Financial assets held for trading | 234,834 | 230,253 | 206,874 | ||||||||
| Non-trading financial assets mandatorily at fair value through profit or loss | 5,724 | 6,130 | 6,166 | ||||||||
| Financial assets designated at fair value through profit or loss | 8,791 | 7,915 | 9,169 | ||||||||
| Financial assets at fair value through other comprehensive income | 75,801 | 89,898 | 82,270 | ||||||||
| Financial assets at amortised cost | 1,148,957 | 1,203,707 | 1,217,341 | ||||||||
| Hedging derivatives | 4,628 | 5,672 | 5,413 | ||||||||
| Changes in the fair value of hedged items in portfolio hedges of interest risk | 53 | (704) | (1,337) | ||||||||
| Investments | 7,191 | 7,277 | 8,235 | ||||||||
| Joint ventures entities | 1,929 | 2,061 | 2,026 | ||||||||
| Associated entities | 5,262 | 5,216 | 6,209 | ||||||||
| Assets under reinsurance contracts | 228 | 222 | 214 | ||||||||
| Tangible assets | 28,997 | 32,087 | 33,709 | ||||||||
| Property, plant and equipment | 28,174 | 31,212 | 32,764 | ||||||||
| For own-use | 11,967 | 12,636 | 12,808 | ||||||||
| Leased out under an operating lease | 16,207 | 18,576 | 19,956 | ||||||||
| Investment property | 823 | 875 | 945 | ||||||||
| Of which : Leased out under an operating lease | 649 | 749 | 806 | ||||||||
| Intangible assets | 17,249 | 19,259 | 19,359 | ||||||||
| Goodwill | 11,960 | 13,438 | 13,668 | ||||||||
| Other intangible assets | 5,289 | 5,821 | 5,691 | ||||||||
| Tax assets | 28,003 | 30,596 | 29,992 | ||||||||
| Current tax assets | 9,516 | 11,426 | 10,017 | ||||||||
| Deferred tax assets | 18,487 | 19,170 | 19,975 | ||||||||
| Other assets | 11,167 | 8,559 | 9,707 | ||||||||
| Insurance contracts linked to pensions | 73 | 81 | 87 | ||||||||
| Inventories | 6 | 6 | 6 | ||||||||
| Other | 11,088 | 8,472 | 9,614 | ||||||||
| Non-current assets held for sale | 68,710 | 4,002 | 2,915 | ||||||||
| TOTAL ASSETS | 1,815,888 | 1,837,081 | 1,786,261 | ||||||||
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| Condensed consolidated financial statements | |||||||||||||||||||||||||||||||||||
| Interim condensed consolidated balance sheet | |||||||||||
| EUR million | |||||||||||
| LIABILITIES | Jun-25 | Dec-24 | Jun-24 | ||||||||
| Financial liabilities held for trading | 155,682 | 152,151 | 133,856 | ||||||||
| Financial liabilities designated at fair value through profit or loss | 35,513 | 36,360 | 34,493 | ||||||||
| Financial liabilities at amortized cost | 1,400,632 | 1,484,322 | 1,454,896 | ||||||||
| Hedging derivatives | 4,431 | 4,752 | 5,535 | ||||||||
| Changes in the fair value of hedged items in portfolio hedges of interest rate risk | 70 | (9) | 12 | ||||||||
| Liabilities under insurance contracts | 18,343 | 17,829 | 17,592 | ||||||||
| Provisions | 8,098 | 8,407 | 8,401 | ||||||||
| Pensions and other post-retirement obligations | 1,652 | 1,731 | 1,936 | ||||||||
| Other long term employee benefits | 984 | 915 | 894 | ||||||||
| Taxes and other legal contingencies | 2,768 | 2,717 | 2,631 | ||||||||
| Contingent liabilities and commitments | 653 | 710 | 698 | ||||||||
| Other provisions | 2,041 | 2,334 | 2,242 | ||||||||
| Tax liabilities | 8,911 | 9,598 | 9,802 | ||||||||
| Current tax liabilities | 3,099 | 3,322 | 3,691 | ||||||||
| Deferred tax liabilities | 5,812 | 6,276 | 6,111 | ||||||||
| Other liabilities | 15,862 | 16,344 | 18,026 | ||||||||
| Liabilities associated with non-current assets held for sale | 59,361 | — | — | ||||||||
| TOTAL LIABILITIES | 1,706,903 | 1,729,754 | 1,682,613 | ||||||||
| EQUITY | |||||||||||
| Shareholders' equity | 138,066 | 135,196 | 132,836 | ||||||||
| Capital | 7,443 | 7,576 | 7,747 | ||||||||
| Called up paid capital | 7,443 | 7,576 | 7,747 | ||||||||
| Unpaid capital which has been called up | — | — | — | ||||||||
| Share premium | 38,492 | 40,079 | 41,604 | ||||||||
| Equity instruments issued other than capital | — | — | 735 | ||||||||
| Equity component of the compound financial instrument | — | — | — | ||||||||
| Other equity instruments issued | — | — | 735 | ||||||||
| Other equity | 271 | 217 | 189 | ||||||||
| Accumulated retained earnings | 91,954 | 82,326 | 82,324 | ||||||||
| Revaluation reserves | — | — | — | ||||||||
| Other reserves | (6,922) | (5,976) | (5,816) | ||||||||
| (-) Own shares | (5) | (68) | (6) | ||||||||
| Profit attributable to shareholders of the parent | 6,833 | 12,574 | 6,059 | ||||||||
| (-) Interim dividends | — | (1,532) | — | ||||||||
| Other comprehensive income (loss) | (37,565) | (36,595) | (36,963) | ||||||||
| Items not reclassified to profit or loss | (4,060) | (4,757) | (5,118) | ||||||||
| Items that may be reclassified to profit or loss | (33,505) | (31,838) | (31,845) | ||||||||
| Non-controlling interest | 8,484 | 8,726 | 7,775 | ||||||||
| Other comprehensive income | (2,032) | (2,020) | (1,872) | ||||||||
| Other items | 10,516 | 10,746 | 9,647 | ||||||||
| TOTAL EQUITY | 108,985 | 107,327 | 103,648 | ||||||||
| TOTAL LIABILITIES AND EQUITY | 1,815,888 | 1,837,081 | 1,786,261 | ||||||||
| MEMORANDUM ITEMS: OFF BALANCE SHEET AMOUNTS | |||||||||||
| Loan commitments granted | 302,446 | 302,861 | 290,151 | ||||||||
| Financial guarantees granted | 18,251 | 16,901 | 15,598 | ||||||||
| Other commitments granted | 143,921 | 134,493 | 127,420 | ||||||||
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| Condensed consolidated financial statements | |||||||||||||||||||||||||||||||||||
| Interim condensed consolidated income statement | ||||||||
| EUR million | H1'25 | H1'24 | ||||||
| Interest income | 51,338 | 55,031 | ||||||
| Financial assets at fair value through other comprehensive income | 2,736 | 3,230 | ||||||
| Financial assets at amortized cost | 38,800 | 40,599 | ||||||
| Other interest income | 9,802 | 11,202 | ||||||
| Interest expense | (30,127) | (32,975) | ||||||
| Interest income/ (charges) | 21,211 | 22,056 | ||||||
| Dividend income | 471 | 490 | ||||||
| Income from companies accounted for using the equity method | 332 | 291 | ||||||
| Commission income | 8,553 | 8,361 | ||||||
| Commission expense | (2,211) | (2,199) | ||||||
| Gain or losses on financial assets and liabilities not measured at fair value through profit or loss, net | 8 | 19 | ||||||
| Financial assets at amortized cost | (14) | (43) | ||||||
| Other financial assets and liabilities | 22 | 62 | ||||||
| Gain or losses on financial assets and liabilities held for trading, net | 701 | 368 | ||||||
| Reclassification of financial assets at fair value through other comprehensive income | — | — | ||||||
| Reclassification of financial assets from amortized cost | — | — | ||||||
| Other gains (losses) | 701 | 368 | ||||||
| Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss | 523 | 314 | ||||||
| Reclassification of financial assets at fair value through other comprehensive income | — | — | ||||||
| Reclassification of financial assets from amortized cost | — | — | ||||||
| Other gains (losses) | 523 | 314 | ||||||
| Gain or losses on financial assets and liabilities measured at fair value through profit or loss, net | (301) | 427 | ||||||
| Gain or losses from hedge accounting, net | (13) | 14 | ||||||
| Exchange differences, net | 114 | (211) | ||||||
| Other operating income (*) | 745 | 427 | ||||||
| Other operating expenses | (992) | (1,332) | ||||||
| Income from insurance and reinsurance contracts | 237 | 249 | ||||||
| Expenses from insurance and reinsurance contracts | (196) | (239) | ||||||
| Total income | 29,182 | 29,035 | ||||||
| Administrative expenses | (10,738) | (10,883) | ||||||
| Staff costs | (6,723) | (6,825) | ||||||
| Other general and administrative expenses | (4,015) | (4,058) | ||||||
| Depreciation and amortization | (1,626) | (1,600) | ||||||
| Provisions or reversal of provisions, net | (1,250) | (1,598) | ||||||
| Impairment or reversal of impairment of financial assets not measured at fair value through profit or loss and net gains and losses from modifications | (6,524) | (6,275) | ||||||
| Financial assets at fair value through other comprehensive income | (55) | (4) | ||||||
| Financial assets at amortized cost | (6,469) | (6,271) | ||||||
| Impairment of investments in subsidiaries, joint ventures and associates, net | — | — | ||||||
| Impairment on non-financial assets, net | (147) | (289) | ||||||
| Tangible assets | (114) | (182) | ||||||
| Intangible assets | (28) | (105) | ||||||
| Others | (5) | (2) | ||||||
| Gain or losses on non-financial assets and investments, net | (32) | 365 | ||||||
| Negative goodwill recognized in results | 22 | — | ||||||
| Gains or losses on non-current assets held for sale not classified as discontinued operations | 217 | (31) | ||||||
| Operating profit/(loss) before tax | 9,104 | 8,724 | ||||||
| Tax expense or income from continuing operations | (2,367) | (2,707) | ||||||
| Profit/(loss) for the period from continuing operations | 6,737 | 6,017 | ||||||
| Profit/( loss) after tax from discontinued operations | 726 | 575 | ||||||
| Profit/(loss) for the period | 7,463 | 6,592 | ||||||
| Profit attributable to non-controlling interests | 630 | 533 | ||||||
| Profit/(loss) attributable to the parent | 6,833 | 6,059 | ||||||
| Earnings/(losses) per share | ||||||||
| Basic | 0.43 | 0.37 | ||||||
| Diluted | 0.43 | 0.37 | ||||||
(*) Includes -EUR 299 million at 30 June 2025 (-EUR 687 million at 30 June 2024) derived from the net monetary loss generated in Argentina as a result of the application of IAS 29 Financial reporting in hyperinflationary economies.
January - June 2025 | | 91 | ||||||
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| Glossary | |||||||||||||||||||||||||||||||||||
Glossary
•A2A: account-to-account
•Active customer: Those customers who comply with the minimum balance, income and/or transactionality requirements as defined according to the business area
•ADR: American Depositary Receipt
•APM: Alternative Performance Measures
•AuMs: Assets under management
•bn: Billion
•BNPL: Buy now, pay later
•bps: basis points
•CDI: CREST Depository Interest
•CET1: Common Equity Tier 1
•CF: Corporate Finance
•CHF: Swiss francs
•CIB: Corporate & Investment Banking
•CNMV: Spanish National Securities Market Commission (Comisión Nacional del Mercado de Valores)
•Consumer: Digital Consumer Bank
•Costs in real terms: variations excluding the effect of average inflation over the last twelve months
•CRR: Capital Requirements Regulation
•DCBE: Digital Consumer Bank Europe
•DCB US: Digital Consumer Bank US
•Digital customers: Every consumer of a commercial bank’s services who has logged on to their personal online banking and/or mobile banking in the last 30 days
•ECAs: Export Credit Agencies, government-backed financial institutions that support domestic companies' international trade
•ECB: European Central Bank
•EPS: Earnings per share
•ESMA: European Securities and Markets Authority
•Fed: Federal Reserve
•Free float: total number of shares in circulation minus treasury shares as a % the total number of shares in circulation
•Financial inclusion: Number of people who are unbanked, underbanked, in financial difficulty, with difficulties in accessing credit who, through the Group's products and services, are able to access the financial system or receive tailored finance. Financially underserved groups are defined as people who do not have a current account, or who have an account but obtained alternative (non-bank) financial services in the last 12 months. Beneficiaries of various programmes are included in the quantification process only once in the entire period. Only new empowered people are counted, taking as a base year those existing since 2019.
•FX: Foreign Exchange
•GB: Global Banking
•GDP: Gross Domestic Product
•GM: Global Markets
•GTB: Global Transaction Banking
•IA: Artificial intelligence
•IFRS 5: International Financial Reporting Standard 5, regarding non-current Assets Held for Sale and Discontinued Operations
•IFRS 8: International Financial Reporting Standard 8, regarding operating segments
•IFRS 9: International Financial Reporting Standard 9, regarding financial instruments
•IT: Information technology
•LCR: Liquidity Coverage Ratio
•LLPs: Loan-loss provisions
•MDA: Maximum Distributable Amount
•mn: Million
•MREL: Minimum Requirement for own funds and eligible liabilities)
•NII: Net interest income
•NPS: Net promoter score
•ODS: Open Digital Services
•P2R: Pillar 2 requirement
•Payments: PagoNxt (Getnet, Ebury and PagoNxt) and Cards
•PB: Private Banking
•PBT: Profit before tax
•Phygital: The merging of the physical and digital worlds to create enhanced customer experiences
•PoS: Point of sale
•pp: percentage points
•QoQ: quarter-on-quarter
•Retail: Retail & Commercial Banking
•Repos: Repurchase agreements
•RoA: Return on assets
•RoE: Return on equity
•RoRWA: Return on risk-weighted assets
•RoTE: Return on tangible equity
•RoTE (post-AT1): Return on tangible equity excluding the cost of AT1issuances from the numerator.
•RWAs: Risk-weighted assets
•Sales conversion: Indicator that measures the effectiveness of a commercial process in converting opportunities into actual sales
•SAM: Santander Asset Management
•SBNA: Santander Bank N.A.
•SC USA: Santander Consumer USA
•SEC: Securities and Exchanges Commission
•SHUSA: Santander Holdings USA, Inc.
•SMEs: Small and medium enterprises
•SPAC: Special Purpose Acquisition Company
•Time-to-market: The length of time it takes for a product or service to being available for purchase
•TLAC: The total loss-absorbing capacity requirement which is required to be met under the CRD V package
•TNAV: Tangible net asset value
•Token: Digital unit that represents a value, right, or asset within a technological system, typically based on blockchain
•Tokenization: Process by which a tangible or intangible asset is digitally represented through a token on a blockchain network or other secure technological infrastructure
•TPV: Total payments volume
•VaR: Value at Risk
•Wealth: Wealth Management & Insurance
•YoY: year-on-year
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| Important information | |||||||||||||||||||||||||||||||||||
Important information
Non-IFRS and alternative performance measures
Banco Santander, S.A. (“Santander”) cautions that this report may contain financial information prepared according to International Financial Reporting Standards (IFRS) and taken from our consolidated financial statements, as well as alternative performance measures (APMs) as defined in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority (ESMA) on 5 October 2015, and other non-IFRS measures. The APMs and non-IFRS measures were calculated with information from Grupo Santander; however, they are neither defined or detailed in the applicable financial reporting framework nor audited or reviewed by our auditors. We use the APMs and non-IFRS measures when planning, monitoring and evaluating our performance. We consider them to be useful metrics for our management and investors to compare operating performance between accounting periods.
Nonetheless, the APMs and non-IFRS measures are supplemental information; their purpose is not to substitute the IFRS measures. Furthermore, companies in our industry and others may calculate or use APMs and non-IFRS measures differently, thus making them less useful for comparison purposes. APMs using environmental, social and governance labels have not been calculated in accordance with the Taxonomy Regulation or with the indicators for principal adverse impact in SFDR.
For more details on APMs and non-IFRS measures, please see the 2024 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the SEC) on 28 February 2025 (https://www.santander.com/content/dam/santander-com/en/documentos/informacion-sobre-resultados-semestrales-y-anuales-suministrada-a-la-sec/2025/sec-2024-annual-20-f-2024-en.pdf), as well as the section “Alternative performance measures” of Banco Santander, S.A. (Santander) Q1 2025 Financial Report, published on 30 April 2025 (https://www.santander.com/en/shareholders-and-investors/financial-and-economic-information#quarterly-results).
Sustainability information
This report may contain, in addition to financial information, sustainability-related information, including environmental, social and governance-related metrics, statements, goals, targets, commitments and opinions. Sustainability information is not audited nor, save as expressly indicated under section ‘Auditors’ reviews’ of the 2024 Annual Financial Report, reviewed by an external auditor. Sustainability information is prepared following various external and internal frameworks, reporting guidelines and measurement, collection and verification methods and practices, which may materially differ from those applicable to financial information and are in many cases emerging and evolving. Sustainability information is based on various materiality thresholds, estimates, assumptions, judgments and underlying data derived internally and from third parties. Sustainability information is thus subject to significant measurement uncertainties, may not be comparable to sustainability information of other companies or over time or across periods and its use is not meant to imply that the information is fit for any particular purpose or that it is material to us under mandatory reporting standards. The sustainability information is for informational purposes only, without any liability being accepted in connection with it except where such liability cannot be limited under overriding provisions of applicable law.
Forward-looking statements
Santander hereby warns that this document may contain 'forward-looking statements', as defined by the US Private Securities Litigation Reform Act of 1995. Such statements can be understood through words and expressions like 'expect', 'project', 'anticipate', 'should', 'intend', 'probability', 'risk', 'VaR', 'RoRAC', 'RoRWA', 'TNAV', 'target', 'goal', 'objective', 'estimate', 'future', 'ambition', 'aspiration', 'commitment', 'commit', 'focus', 'pledge' and similar expressions. They include (but are not limited to) statements on future business development, shareholder remuneration policy and NFI. However, risks, uncertainties and other important factors may lead to developments and results that differ materially from those anticipated, expected, projected or assumed in forward-looking statements. The important factors below (and others mentioned in this document), as well as other unknown or unpredictable factors, could affect our future development and results and could lead to outcomes materially different from what our forward-looking statements anticipate, expect, project or assume:
•general economic or industry conditions (e.g., an economic downturn; higher volatility in the capital markets; inflation; deflation; changes in demographics, consumer spending, investment or saving habits; and the effects of the wars in Ukraine and the Middle East or the outbreak of public health emergencies in the global economy) in areas where we have significant operations or investments;
•exposure to market risks (e.g., risks from interest rates, foreign exchange rates, equity prices and new benchmark indices);
•potential losses from early loan repayment, collateral depreciation or counterparty risk;
•political instability in Spain, the UK, other European countries, Latin America and the US;
•changes in monetary, fiscal and immigration policies and trade tensions, including the imposition of tariffs and retaliatory responses;
•legislative, regulatory or tax changes (including regulatory capital and liquidity requirements) and greater regulation prompted by financial crises;
•acquisitions, integrations, divestitures and challenges arising from deviating management’s resources and attention from other strategic opportunities and operational matters;
•climate-related conditions, regulations, targets and weather events;
•uncertainty over the scope of actions that may be required by us, governments and other to achieve goals relating to climate, environmental and social matters, as well as the evolving nature of underlying science and industry and potential conflicts and inconsistencies among governmental standards and regulations;
•our own decisions and actions, including those affecting or changing our practices, operations, priorities, strategies, policies or procedures;
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| Important information | |||||||||||||||||||||||||||||||||||
•changes affecting our access to liquidity and funding on acceptable terms, especially due to credit spread shifts or credit rating downgrade for the entire group or core subsidiaries.
•our exposure to operational losses; and
•potential losses associated with cyberattacks, data breaches, data losses and other security incidents.
Forward looking statements are based on current expectations and future estimates about Santander’s and third-parties’ operations and businesses and address matters that are uncertain to varying degrees, including, but not limited to developing standards that may change in the future; plans, projections, expectations, targets, objectives, strategies and goals relating to environmental, social, safety and governance performance, including expectations regarding future execution of Santander’s and third parties’ energy and climate strategies, and the underlying assumptions and estimated impacts on Santander’s and third-parties’ businesses related thereto; Santander’s and third-parties’ approach, plans and expectations in relation to carbon use and targeted reductions of emissions; changes in operations or investments under existing or future environmental laws and regulations; and changes in government regulations and regulatory requirements, including those related to climate-related initiatives.
Forward-looking statements are aspirational, should be regarded as indicative, preliminary and for illustrative purposes only, speak only as of the date of this report and are informed by the knowledge, information and views available on such date and are subject to change without notice. Banco Santander is not required to update or revise any forward-looking statements, regardless of new information, future events or otherwise, except as required by applicable law.
Past performance does not indicate future outcomes
Statements about historical performance or growth rates must not be construed as suggesting that future performance, share price or earnings (including earnings per share) will necessarily be the same or higher than in a previous period. Nothing mentioned in this report should be taken as a profit and loss forecast.
Not a securities offer
This report and the information it contains does not constitute an offer to sell nor the solicitation of an offer to buy any securities.
Third Party Information
In particular, regarding the data provided by third parties, neither Santander, nor any of its directors, managers or employees, either explicitly or implicitly, guarantees that these contents are exact, accurate, comprehensive or complete, nor are they obliged to keep them updated, nor to correct them in the case that any deficiency, error or omission were to be detected. Moreover, in reproducing these contents in by any means, Santander may introduce any changes it deems suitable, and may omit, partially or completely, any of the elements of this report, and in case of any deviation, Santander assumes no liability for any discrepancy.
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| Main risks and uncertainties | |||||||||||||||||||||||||||||||||||
Main risks and uncertainties
At the date of preparation of this management report, Grupo Santander considers that the important factors highlighted in the ‘Forward-looking statements’ part of the ‘Important Information’ section, as well as other unknown or unpredictable factors, could affect our future development and results and could lead to outcomes materially different from what our forward-looking statements anticipate, expect, project or assume.
These are not the only risks that the bank may face. Other unknown risks or those not considered relevant at this time, may materialize in the future.
Our geographic and business diversification protects us, to some extent, from adverse circumstances and enables us to resiliently face them. Although it is difficult to make estimations in the current environment, our strategy and business model are a clear competitive advantage.
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| Other disclosures required by the Bank of Spain | |||||||||||||||||||||||||||||||||||
Other disclosures required by the Bank of Spain
Disclosures required under Bank of Spain Circular 6/2012 on sector and geographic concentration of risk
Concentration of risk
The breakdown at 30 June 2025 of the concentration of the Group's risk, by activity and geographic location of counterparties, is as follows:
| Million euros | 30/06/2025 | ||||||||||||||||
| Total | Spain | Rest of the European Union | America | Rest of the world | |||||||||||||
| Central banks and Credit institutions | 347,431 | 74,023 | 66,508 | 126,319 | 80,581 | ||||||||||||
| Public sector | 230,905 | 75,527 | 45,954 | 93,071 | 16,353 | ||||||||||||
| Of which: | |||||||||||||||||
| Central government | 200,025 | 59,603 | 40,185 | 84,112 | 16,125 | ||||||||||||
| Other central government | 30,880 | 15,924 | 5,769 | 8,959 | 228 | ||||||||||||
| Other financial institutions (financial business activity) | 199,582 | 16,078 | 47,211 | 67,086 | 69,207 | ||||||||||||
| Non-financial companies and individual entrepreneurs (non-financial business activity) (broken down by purpose) | 420,351 | 105,253 | 88,592 | 169,953 | 56,553 | ||||||||||||
| Of which: | |||||||||||||||||
| Construction and property development | 19,691 | 3,825 | 1,565 | 9,677 | 4,624 | ||||||||||||
| Civil engineering construction | 5,342 | 1,893 | 1,751 | 1,630 | 68 | ||||||||||||
| Large companies | 269,968 | 52,380 | 60,266 | 113,123 | 44,199 | ||||||||||||
| SMEs and individual entrepreneurs | 125,350 | 47,155 | 25,010 | 45,523 | 7,662 | ||||||||||||
| Households – other (broken down by purpose) | 541,198 | 89,468 | 95,630 | 138,602 | 217,498 | ||||||||||||
| Of which: | |||||||||||||||||
| Residential | 331,593 | 61,736 | 26,105 | 44,227 | 199,525 | ||||||||||||
| Consumer loans | 187,610 | 18,551 | 67,810 | 85,357 | 15,892 | ||||||||||||
| Other purposes | 21,995 | 9,181 | 1,715 | 9,018 | 2,081 | ||||||||||||
Total (*) | 1,739,467 | 360,349 | 343,895 | 595,031 | 440,192 | ||||||||||||
(*) For the purpose of this table, the definition of risk includes the following public balance sheet items: loans and advances to credit institutions, deposits at central banks, loans and advances to customers, debt securities, capital instruments, trading derivatives, hedging derivatives, equity investments and guarantees extended.
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| Other disclosures required by the Bank of Spain | |||||||||||||||||||||||||||||||||||
| Million euros (*) | |||||||||||||||||||||||||||||
| Secured loans | |||||||||||||||||||||||||||||
| Net exposure | Loan-to-value (**) | ||||||||||||||||||||||||||||
| Total | Unsecured loans | Of which: Mortgage collateral | Of which: Other collateral | Less than or equal to 40% | Greater than 40% and less than or equal to 60% | Greater than 60% and less than or equal to 80% | Greater than 80% and less than or equal to 100% | Greater than 100% | |||||||||||||||||||||
| Public sector | 27,963 | 26,636 | 159 | 1,168 | 1,102 | 72 | 26 | 69 | 58 | ||||||||||||||||||||
| Other financial institutions (financial business activity) | 118,243 | 40,394 | 2,240 | 75,609 | 2,331 | 1,184 | 360 | 73,487 | 487 | ||||||||||||||||||||
| Non-financial corporations and individual entrepreneurs (non-financial business activity) (broken down by purpose) | 305,458 | 167,430 | 63,784 | 74,244 | 20,937 | 27,473 | 17,622 | 48,840 | 23,156 | ||||||||||||||||||||
| Of which: | |||||||||||||||||||||||||||||
| Construction and property development | 16,893 | 1,312 | 15,368 | 213 | 4,604 | 6,666 | 1,729 | 1,386 | 1,196 | ||||||||||||||||||||
| Civil engineering construction | 2,733 | 1,806 | 16 | 911 | 93 | 72 | 19 | 529 | 214 | ||||||||||||||||||||
| Large companies | 173,760 | 116,220 | 19,924 | 37,616 | 5,768 | 8,278 | 6,469 | 27,247 | 9,778 | ||||||||||||||||||||
| SMEs and individual entrepreneurs | 112,072 | 48,092 | 28,476 | 35,504 | 10,472 | 12,457 | 9,405 | 19,678 | 11,968 | ||||||||||||||||||||
| Households – other (broken down by purpose) | 538,493 | 108,935 | 337,160 | 92,398 | 101,179 | 125,515 | 108,205 | 56,673 | 37,986 | ||||||||||||||||||||
| Of which: | |||||||||||||||||||||||||||||
| Residential | 330,676 | 1,144 | 329,413 | 119 | 91,079 | 116,109 | 96,648 | 23,730 | 1,966 | ||||||||||||||||||||
| Consumer loans | 187,419 | 102,082 | 1,557 | 83,780 | 5,514 | 6,765 | 9,091 | 28,549 | 35,418 | ||||||||||||||||||||
| Other purposes | 20,398 | 5,709 | 6,190 | 8,499 | 4,586 | 2,641 | 2,466 | 4,394 | 602 | ||||||||||||||||||||
| Total | 990,157 | 343,395 | 403,343 | 243,419 | 125,549 | 154,244 | 126,213 | 179,069 | 61,687 | ||||||||||||||||||||
| Memorandum item | |||||||||||||||||||||||||||||
| Refinanced and restructured transactions | 18,153 | 6,024 | 6,945 | 5,184 | 2,618 | 2,374 | 1,706 | 2,970 | 2,461 | ||||||||||||||||||||
(*) In addition, the Group has granted advances to customers amounting to EUR 20,570 million; therefore, the total amount of loans and advances to customers amounts to EUR 1,010,727 million.
(**) Includes balances net of impairment or accumulated losses in fair value due to credit risk.
January - June 2025 | | 97 | ||||||
Banco Santander, S.A. and companies composing Santander Group
INDEX TO THE INTERIM UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS | |||||
100 | Condensed consolidated balance sheets as of 30 June 2025 and 31 December 2024 (unaudited) | ||||
102 | Condensed consolidated income statements for the six-month periods ended 30 June 2025 and 30 June 2024 (unaudited) | ||||
103 | Condensed consolidated statements of recognised income and expense for the six-month periods ended 30 June 2025 and 30 June 2024 (unaudited) | ||||
104 | Condensed consolidated statements of changes in total equity for the six-month periods ended 30 June 2025 and 30 June 2024 (unaudited) | ||||
106 | Condensed consolidated statements of cash flows for the six-month periods ended 30 June 2025 and 30 June 2024 (unaudited) | ||||
107 | Notes to the unaudited condensed consolidated financial statements | ||||
GRUPO SANTANDER
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS AS AT 30 JUNE 2025 AND 31 DECEMBER 2024
(EUR million)
| ASSETS | Note | 30-06-2025 | 31-12-2024 | ||||||||
| CASH, CASH BALANCES AT CENTRAL BANKS AND OTHER DEPOSITS ON DEMAND | |||||||||||
| FINANCIAL ASSETS HELD FOR TRADING | 5 | ||||||||||
| NON-TRADING FINANCIAL ASSETS MANDATORILY AT FAIR VALUE THROUGH PROFIT OR LOSS | 5 | ||||||||||
| FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS | 5 | ||||||||||
| FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME | 5 | ||||||||||
| FINANCIAL ASSETS AT AMORTISED COST | 5 | ||||||||||
| HEDGING DERIVATIVES | |||||||||||
| CHANGES IN THE FAIR VALUE OF HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RISK | ( | ||||||||||
| INVESTMENTS | |||||||||||
| Joint venture entities | |||||||||||
| Associated entities | |||||||||||
| ASSETS UNDER REINSURANCE CONTRACTS | |||||||||||
| TANGIBLE ASSETS | 7 | ||||||||||
| Property, plant and equipment | |||||||||||
| For own-use | |||||||||||
| Leased out under an operating lease | |||||||||||
| Investment properties | |||||||||||
| Of which : Leased out under an operating lease | |||||||||||
| INTANGIBLE ASSETS | 8 | ||||||||||
| Goodwill | |||||||||||
| Other intangible assets | |||||||||||
| TAX ASSETS | |||||||||||
| Current tax assets | |||||||||||
| Deferred tax assets | |||||||||||
| OTHER ASSETS | |||||||||||
| Insurance contracts linked to pensions | |||||||||||
| Inventories | |||||||||||
| Other | |||||||||||
| NON-CURRENT ASSETS HELD FOR SALE | 6 | ||||||||||
| TOTAL ASSETS | |||||||||||
The accompanying explanatory Notes 1 to 17 are an integral part of the condensed consolidated balance sheet as at 30 June 2025.
100 | | January - June 2025 | ||||||
GRUPO SANTANDER
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS AS AT 30 JUNE 2025 AND 31 DECEMBER 2024
(EUR million)
| LIABILITIES | Note | 30-06-2025 | 31-12-2024 | ||||||||
| FINANCIAL LIABILITIES HELD FOR TRADING | 9 | ||||||||||
| FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS (**) | 9 | ||||||||||
| FINANCIAL LIABILITIES AT AMORTISED COST | 9 | ||||||||||
| HEDGING DERIVATIVES | |||||||||||
| CHANGES IN THE FAIR VALUE OF HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK | ( | ||||||||||
| LIABILITIES UNDER INSURANCE CONTRACTS | |||||||||||
| PROVISIONS | |||||||||||
| Pension and other post-retirement obligations | 10 | ||||||||||
| Other long term employee benefits | 10 | ||||||||||
| Taxes and other legal contingencies | 10 | ||||||||||
| Contingent liabilities and commitments | 14 | ||||||||||
| Other provisions | 10 | ||||||||||
| TAX LIABILITIES | |||||||||||
| Current tax liabilities | |||||||||||
| Deferred tax liabilities | |||||||||||
| OTHER LIABILITIES | |||||||||||
| LIABILITIES ASSOCIATED WITH NON-CURRENT ASSETS HELD FOR SALE | 6 | ||||||||||
| TOTAL LIABILITIES | |||||||||||
| SHAREHOLDERS´ EQUITY | |||||||||||
| CAPITAL | 11 | ||||||||||
| Called up paid capital | |||||||||||
| Unpaid capital which has been called up | |||||||||||
| SHARE PREMIUM | |||||||||||
| EQUITY INSTRUMENTS ISSUED OTHER THAN CAPITAL | |||||||||||
| Equity component of the compound financial instrument | |||||||||||
| Other equity instruments issued | |||||||||||
| OTHER EQUITY | |||||||||||
| ACCUMULATED RETAINED EARNINGS | |||||||||||
| REVALUATION RESERVES | |||||||||||
| OTHER RESERVES | ( | ( | |||||||||
| (-) OWN SHARES | ( | ( | |||||||||
| PROFIT ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT | 3 | ||||||||||
| (-) INTERIM DIVIDENDS | ( | ||||||||||
| OTHER COMPREHENSIVE INCOME (LOSS) | 11 | ( | ( | ||||||||
| Items not reclassified to profit or loss | ( | ( | |||||||||
| Items that may be reclassified to profit or loss | ( | ( | |||||||||
| NON-CONTROLLING INTEREST | 6 | ||||||||||
| Other comprehensive income | ( | ( | |||||||||
| Other items | |||||||||||
| TOTAL EQUITY | |||||||||||
| TOTAL LIABILITIES AND EQUITY | |||||||||||
| MEMORANDUM ITEMS: OFF BALANCE SHEET AMOUNTS | 14 | ||||||||||
| Loan commitments granted | |||||||||||
| Financial guarantees granted | |||||||||||
| Other commitments granted | |||||||||||
The accompanying explanatory Notes 1 to 17 are an integral part of the condensed consolidated balance sheet as at 30 June 2025.
| January - June 2025 | | 101 | ||||||
GRUPO SANTANDER
UNAUDITED CONDENSED CONSOLIDATED INCOME STATEMENTS
FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2025 AND 2024
(EUR million) | (Debit) / Credit | ||||||||||
| Note | 01-01-2025 to 30-06-2025 | 01-01-2024 to 30-06-2024 | |||||||||
| Interest income | |||||||||||
| Financial assets at fair value through other comprehensive income | |||||||||||
| Financial assets at amortised cost | |||||||||||
| Other interest income | |||||||||||
| Interest expense | ( | ( | |||||||||
| Interest income/ (charges) | |||||||||||
| Dividend income | |||||||||||
| Income from companies accounted for using the equity method | |||||||||||
| Commission income | |||||||||||
| Commission expense | ( | ( | |||||||||
| Gain or losses on financial assets and liabilities not measured at fair value through profit or loss, net | |||||||||||
| Financial assets at amortised cost | ( | ( | |||||||||
| Other financial assets and liabilities | |||||||||||
| Gain or losses on financial assets and liabilities held for trading, net | |||||||||||
| Reclassification of financial assets at fair value through other comprehensive income | |||||||||||
| Reclassification of financial assets at amortised cost | |||||||||||
| Other gains (losses) | |||||||||||
| Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss | |||||||||||
| Reclassification of financial assets at fair value through other comprehensive income | |||||||||||
| Reclassification of financial assets at amortised cost | |||||||||||
| Other gains (losses) | |||||||||||
| Gain or losses on financial assets and liabilities measured at fair value through profit or loss, net | ( | ||||||||||
| Gain or losses from hedge accounting, net | ( | ||||||||||
| Exchange differences, net | ( | ||||||||||
| Other operating income (*) | |||||||||||
| Other operating expenses | ( | ( | |||||||||
| Income from insurance and reinsurance contracts | |||||||||||
| Expenses from insurance and reinsurance contracts | ( | ( | |||||||||
| Total income | |||||||||||
| Administrative expenses | ( | ( | |||||||||
| Staff costs | ( | ( | |||||||||
| Other general and administrative expenses | ( | ( | |||||||||
| Depreciation and amortisation cost | ( | ( | |||||||||
| Provisions or reversal of provisions, net | ( | ( | |||||||||
| Impairment or reversal of impairment of financial assets not measured at fair value through profit or loss and net gains and losses from modifications | ( | ( | |||||||||
| Financial assets at fair value through other comprehensive income | ( | ( | |||||||||
| Financial assets at amortised cost | 5 | ( | ( | ||||||||
| Impairment of investments in subsidiaries, joint ventures and associates, net | |||||||||||
| Impairment on non-financial assets, net | ( | ( | |||||||||
| Tangible assets | ( | ( | |||||||||
| Intangible assets | ( | ( | |||||||||
| Others | ( | ( | |||||||||
| Gain or losses on non financial assets and investments, net | ( | ||||||||||
| Negative goodwill recognised in results | |||||||||||
| Gains or losses on non-current assets held for sale not classified as discontinued operations | 6 | ( | |||||||||
| Operating profit/(loss) before tax | |||||||||||
| Tax expense or income from continuing operations | ( | ( | |||||||||
| Profit/(loss) for the period from continuing operations | |||||||||||
| Profit/( loss) after tax from discontinued operations | |||||||||||
| Profit/(loss) for the period | |||||||||||
| Profit attributable to non-controlling interests | |||||||||||
| Profit/(loss) attributable to the parent | |||||||||||
| Earnings/(losses) per share | 3 | ||||||||||
| Basic | |||||||||||
| Diluted | |||||||||||
(*) Includes EUR -299 million at 30 June 2025 (EUR -687 million at 30 June 2024) derived from the net monetary loss generated in Argentina as a result of the application of IAS 29 Financial reporting in hyperinflationary economies.
The accompanying explanatory Notes 1 to 17 are an integral part of the condensed consolidated income statement
for the six-month period ended 30 June 2025.
102 | | January - June 2025 | ||||||
GRUPO SANTANDER
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF RECOGNISED INCOME AND EXPENSE
FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2025 AND 2024
(EUR million)
| (Debit) / Credit | |||||||||||
| Note | 01-01-2025 to 30-06-2025 | 01-01-2024 to 30-06-2024 | |||||||||
| CONSOLIDATED PROFIT/(LOSS) FOR THE PERIOD | |||||||||||
| OTHER RECOGNISED INCOME AND EXPENSE | ( | ( | |||||||||
| Items that will not be reclassified to profit or loss | 11 | ( | |||||||||
| Actuarial gains and losses on defined benefit pension plans | ( | ||||||||||
| Non-current assets held for sale | ( | ||||||||||
| Other recognised income and expense of investments in subsidiaries, joint ventures and associates | ( | ||||||||||
| Changes in the fair value of equity instruments measured at fair value through other comprehensive income | |||||||||||
| Gains or losses resulting from the accounting for hedges of equity instruments measured at fair value through other comprehensive income, net | |||||||||||
| Changes in the fair value of equity instruments measured at fair value through other comprehensive income (hedged item) | ( | ||||||||||
| Changes in the fair value of equity instruments measured at fair value through other comprehensive income (hedging instrument) | ( | ||||||||||
| Changes in the fair value of financial liabilities at fair value through profit or loss attributable to changes in credit risk | ( | ||||||||||
| Income tax relating to items that will not be reclassified | ( | ||||||||||
| Items that may be reclassified to profit or loss | 11 | ( | ( | ||||||||
| Hedges of net investments in foreign operations (effective portion) | 11 | ||||||||||
| Revaluation gains (losses) | |||||||||||
| Amounts transferred to income statement | |||||||||||
| Other reclassifications | |||||||||||
| Exchange differences | 11 | ( | ( | ||||||||
| Revaluation gains (losses) | ( | ( | |||||||||
| Amounts transferred to income statement | |||||||||||
| Other reclassifications | |||||||||||
| Cash flow hedges (effective portion) | ( | ||||||||||
| Revaluation gains (losses) | ( | ( | |||||||||
| Amounts transferred to income statement | |||||||||||
| Transferred to initial carrying amount of hedged items | |||||||||||
| Other reclassifications | |||||||||||
| Hedging instruments (items not designated) | |||||||||||
| Revaluation gains (losses) | |||||||||||
| Amounts transferred to income statement | |||||||||||
| Other reclassifications | |||||||||||
| Debt instruments at fair value with changes in other comprehensive income | ( | ||||||||||
| Revaluation gains (losses) | ( | ||||||||||
| Amounts transferred to income statement | ( | ||||||||||
| Other reclassifications | |||||||||||
| Non-current assets held for sale | |||||||||||
| Revaluation gains (losses) | |||||||||||
| Amounts transferred to income statement | |||||||||||
| Other reclassifications | |||||||||||
| Share of other recognised income and expense of investments | ( | ( | |||||||||
| Income tax relating to items that may be reclassified to profit or loss | ( | ||||||||||
| Total recognised income and expenses for the year | |||||||||||
| Attributable to non-controlling interests | |||||||||||
| Attributable to the parent | |||||||||||
The accompanying explanatory Notes 1 to 17 are an integral part of the condensed consolidated statement of recognised income and expense for the six-month period ended 30 June 2025.
| January - June 2025 | | 103 | ||||||
GRUPO SANTANDER
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL EQUITY
FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2025 AND 2024
FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2025 AND 2024
(EUR million)
| Capital | Share premium | Equity instruments issued (not capital) | Other equity instruments | Accumulated retained earnings | Revaluation reserves | Other reserves | (-) Own shares | Profit Attributable to shareholders of the parent | (-) Interim dividends | Other comprehensive income | Non-Controlling interest | Total | ||||||||||||||||||||||||||||||||
| Other comprehensive income | Other items | |||||||||||||||||||||||||||||||||||||||||||
Balance as at 31-12-2024 | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Adjustments due to errors | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
| Adjustments due to changes in accounting policies | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
| Opening balance as at 01-01-2025 | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Total recognised income and expense | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||
| Other changes in equity | ( | ( | — | — | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||
| Issuance of ordinary shares | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
| Issuance of preferred shares | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
| Issuance of other financial instruments | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
| Maturity of other financial instruments | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
| Conversion of financial liabilities into equity | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
| Capital reduction | ( | ( | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
| Dividends | — | — | — | — | ( | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||
| Purchase of equity instruments | — | — | — | — | — | — | — | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||
| Disposal of equity instruments | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
| Transfer from equity to liabilities | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
| Transfer from liabilities to equity | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
| Transfers between equity items | — | — | — | — | — | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||
| Increases (decreases) due to business combinations | — | — | — | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||
| Share-based payment | — | — | — | ( | — | — | — | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||
| Others increases or (-) decreases of the equity | — | — | — | — | — | ( | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||
Balance as at 30-06-2025 | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
The accompanying explanatory Notes 1 to 17 are an integral part of the condensed consolidated statement of changes in total equity
for the six-month period ended 30 June 2025.
104 | | January - June 2025 | ||||||
GRUPO SANTANDER
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL EQUITY
FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2025 AND 2024
(EUR million)
| Capital | Share premium | Equity instruments issued (not capital) | Other equity instruments | Accumulated retained earnings | Revaluation reserves | Other reserves | (-) Own shares | Profit Attributable to shareholders of the parent | (-) Interim dividends | Other comprehensive income | Non-Controlling interest | Total | ||||||||||||||||||||||||||||||||
| Other comprehensive income | Other items | |||||||||||||||||||||||||||||||||||||||||||
Balance as at 31-12-2023 | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Adjustments due to errors | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
| Adjustments due to changes in accounting policies | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
| Opening balance as at 01-01-2024 | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
| Total recognised income and expense | — | — | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||
| Other changes in equity | ( | ( | ( | — | ( | ( | — | ( | ( | |||||||||||||||||||||||||||||||||||
| Issuance of ordinary shares | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
| Issuance of preferred shares | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
| Issuance of other financial instruments | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
| Maturity of other financial instruments | — | — | — | — | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||
| Conversion of financial liabilities into equity | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
| Capital reduction | ( | ( | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||
| Dividends | — | — | — | — | ( | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||
| Purchase of equity instruments | — | — | — | — | — | — | — | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||
| Disposal of equity instruments | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
| Transfer from equity to liabilities | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
| Transfer from liabilities to equity | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
| Transfers between equity items | — | — | — | — | — | ( | — | ( | — | — | ||||||||||||||||||||||||||||||||||
| Increases (decreases) due to business combinations | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
| Share-based payment | — | — | — | ( | — | — | — | — | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||
| Others increases or (-) decreases of the equity | — | — | — | — | ( | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||
Balance as at 30-06-2024 | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||
The accompanying explanatory Notes 1 to 17 are an integral part of the condensed consolidated statement of changes in total equity
for the six-month period ended 30 June 2025.
| January - June 2025 | | 105 | ||||||
GRUPO SANTANDER
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2025 AND 2024
FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2025 AND 2024
(EUR million)
| Note | 30-06-2025 | 30-06-2024 | |||||||||
| A. CASH FLOWS FROM OPERATING ACTIVITIES | ( | ||||||||||
| Profit/(loss) for the period | |||||||||||
| Adjustments made to obtain the cash flows from operating activities | |||||||||||
| Depreciation and amortisation cost | |||||||||||
| Other adjustments | |||||||||||
| Net increase/(decrease) in operating assets | |||||||||||
| Financial assets held-for-trading | |||||||||||
| Non-trading financial assets mandatorily at fair value through profit or loss | ( | ||||||||||
| Financial assets at fair value through profit or loss | ( | ||||||||||
| Financial assets at fair value through other comprehensive income | ( | ||||||||||
| Financial assets at amortised cost | |||||||||||
| Other operating assets | |||||||||||
| Net increase/(decrease) in operating liabilities | |||||||||||
| Financial liabilities held-for-trading | |||||||||||
| Financial liabilities designated at fair value through profit or loss | ( | ( | |||||||||
| Financial liabilities at amortised cost | ( | ||||||||||
| Other operating liabilities | ( | ||||||||||
| Income tax recovered/(paid) | ( | ( | |||||||||
| B. CASH FLOWS FROM INVESTING ACTIVITIES | ( | ( | |||||||||
| Payments | |||||||||||
| Tangible assets | 7 | ||||||||||
| Intangible assets | |||||||||||
| Investments | |||||||||||
| Subsidiaries and other business units | 2 | ||||||||||
| Non-current assets held for sale and associated liabilities | |||||||||||
| Other payments related to investing activities | |||||||||||
| Proceeds | |||||||||||
| Tangible assets | 7 | ||||||||||
| Intangible assets | |||||||||||
| Investments | |||||||||||
| Subsidiaries and other business units | |||||||||||
| Non-current assets held for sale and associated liabilities | 6 | ||||||||||
| Other proceeds related to investing activities | |||||||||||
| C. CASH FLOW FROM FINANCING ACTIVITIES | ( | ( | |||||||||
| Payments | |||||||||||
| Dividends | 3 | ||||||||||
| Subordinated liabilities | |||||||||||
| Redemption of own equity instruments | |||||||||||
| Acquisition of own equity instruments | |||||||||||
| Other payments related to financing activities | |||||||||||
| Proceeds | |||||||||||
| Subordinated liabilities | |||||||||||
| Issuance of own equity instruments | 11 | ||||||||||
| Disposal of own equity instruments | |||||||||||
| Other proceeds related to financing activities | |||||||||||
| D. EFFECT OF FOREIGN EXCHANGE RATE DIFFERENCES | ( | ||||||||||
| E. NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS | ( | ( | |||||||||
| F. CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | |||||||||||
| G. CASH AND CASH EQUIVALENTS AT END OF PERIOD | |||||||||||
| COMPONENTS OF CASH AND CASH EQUIVALENTS AT END OF PERIOD | |||||||||||
| Cash | |||||||||||
| Cash equivalents at central banks | |||||||||||
| Other financial assets | |||||||||||
| Less: Bank overdrafts refundable on demand | |||||||||||
| TOTAL CASH AND CASH EQUIVALENTS AT END OF PERIOD | |||||||||||
| In which: restricted cash | |||||||||||
| TOTAL CASH AND CASH EQUIVALENTS AT END OF PERIOD ASSOCIATED WITH NON-CURRENT ASSETS HELD FOR SALE | 6 | ||||||||||
The accompanying explanatory Notes 1 to 17 are an integral part of the condensed consolidated statement of recognised income and expense for the six-month period ended 30 June 2025.
106 | | January - June 2025 | ||||||
Banco Santander, S.A. and Companies composing Grupo Santander
Explanatory notes to the interim condensed consolidated financial statements for the six-month period ended 30 June 2025.
1. Introduction, basis of presentation of the interim condensed consolidated financial statements and other information
a) Introduction
Banco Santander, S.A. ('the parent' or 'Banco Santander') is a private-law entity subject to the rules and regulations applicable to banks operating in Spain. The Bylaws and other public information of the Bank can be consulted at its registered office at Paseo de Pereda 9 -12, Santander.
In addition to the operations carried on directly by it, Banco Santander is the head of a group of subsidiaries that engage in various business activities and which compose, together with it, Grupo Santander ('Santander' or 'The Group').
Grupo Santander's interim condensed consolidated financial statements ('interim financial statements') for the six-month period ended 30 June 2025 were authorised and approved by Grupo Santander's directors at the board of directors meeting held on 29 July 2025. Grupo Santander's consolidated annual accounts for year 2024 were approved by shareholders at Banco Santander annual general meeting on 4 April 2025.
b) Basis of presentation of the interim financial statements
Under Regulation (EC) n.º 1606/2002 of the European Parliament and of the Council of 19 July 2002 all companies governed by the law of an EU Member State and whose securities are admitted to trading on a regulated market of any Member State must prepare their consolidated financial statements for the years beginning on or after 1 January, 2005 in conformity with the International Financial Reporting Standards ('IFRS') previously adopted by the European Union ('EU-IFRS'). In order to adapt the accounting system of Spanish credit institutions with the principles and criteria established by the IFRS adopted by the European Union ('EU-IFRS'), the Bank of Spain published circular 4/2017, dated 27 November 2017, and subsequent changes, on Public and Confidential Financial Reporting Standards and Financial Statement Formats.
The consolidated annual accounts for 2024 were authorised at the board of directors meeting on 25 February 2025 in compliance with International Financial Reporting Standards as adopted by the European Union, taking into account Bank of Spain Circular 4/2017, and subsequent modifications, using the basis of consolidation, accounting policies and measurement bases described in Note 2 to the aforementioned consolidated annual accounts and, accordingly, they presented fairly Grupo Santander’s consolidated equity and consolidated financial position at 31 December 2024 and the consolidated results of its operations, and the consolidated cash flows in 2024. The aforementioned consolidated annual accounts, which are included in Grupo Santander’s Form 20-F filed with the U.S. Securities and Exchange Commission on 28 February 2025, and these interim financial statements are also in compliance with International Financial Reporting Standards as issued by the International Accounting Standards Board ('IFRS-IASB', and together with EU-IFRS, 'IFRS').
These interim financial statements were prepared and are presented in accordance with International Accounting Standard (IAS 34), Interim Financial Reporting, for the preparation of interim financial statements in accordance with the provisions of article 12 of Royal Decree 1362/2007 taking into account the requirements of Circular 3/2018, of June 28, of the Securities and Exchange Commission (CNMV). These interim financial statements will be included in the Half-Yearly Financial Information corresponding to the first half of 2025 that the Group presents in accordance with the aforementioned Circular 3/2018.
In accordance with IAS 34, the interim financial statements are intended only to provide an update on the content of the latest consolidated annual accounts authorised for issue, focusing on new activities, events and circumstances occurring during the first six months, and does not duplicate information previously reported in the latest consolidated annual accounts. Consequently, these interim financial statements do not include all the information that would be required for a complete set of consolidated annual accounts prepared in accordance with IFRS and, accordingly, for a proper comprehension of the information included in these interim financial statements, they should be read together with Grupo Santander’s consolidated annual accounts for the year ended 31 December 2024.
Grupo Santander policies include presenting the interim financial statements for its use in the different markets using the Euro as its presentation currency. The amounts held in other currencies and the balances of entities whose functional currency is not the Euro, have been translated to the presentation currency in accordance with the criteria indicated in Note 2.a to the consolidated annual accounts for 2024, except for the exchange rate used for the Argentine peso (see Note 1.c). As indicated in that note, for practical reasons, the balance sheet amount has been converted to the closing exchange rate, the equity to the historical type, and the income and expenses have been converted by applying the average exchange rate of the period; the application of such exchange rate or that corresponding to the date of each transaction does not lead to significant differences in the interim financial statements of Grupo Santander.
| January - June 2025 | | 107 | ||||||
The accounting policies and methods used in preparing these interim financial statements are the same as those applied in the consolidated annual accounts for 2024 including the following accounting standard with an effective application date 1 January 2025, which is detailed below:
•Amendment to IAS 21 Effects of changes in foreign currency exchange rates: IAS 21 established the requirements to apply when there is a temporary lack of interchangeability between two currencies, but did not give indications when this situation was not temporary. Given this scenario, IAS 21 has been modified establishing the criteria to identify these situations, specifying how entities should estimate the spot exchange rate, the methodologies and data to be considered, as well as the associated disclosure requirements. Group applied the aforementioned amendment in advance as of 31 December 2024; for more information see Note 1.c.
The aforementioned accounting standards and modifications have not had a significant effect on Grupo Santander’s financial statements, except for what was disclosed before.
All accounting policies and measurement bases with a material effect on the interim financial statements for 30 June 2025 were applied in their preparation.
By the time of the preparation of these interim financial statements, there are no standards pending adoption by the European Union for the current exercise by the IASB with an effective date of 1 January 2025.
c) Use of critical estimates
The consolidated results and the determination of the consolidated equity are sensitive to the accounting principles and policies, valuation criteria and estimates used by the directors of Banco Santander in preparing the interim financial statements. The main accounting principles, policies, and valuation criteria are indicated in Note 2 of the consolidated annual accounts of the year 2024, except for those indicated in these interim financial statements due to the accounting standards and modifications that have come into effect during the first six months of the year 2025.
The interim financial statements contain estimates made by the senior management of Banco Santander and of the consolidated entities in order to quantify certain of the assets, liabilities, income, expenses and obligations reported in the consolidated entities. These estimates, which were made on the basis of the best information available, relate mainly to the following:
•The income tax expense, which is recognised in interim periods based on the best estimate of the weighted average tax rate expected by Grupo Santander for the full financial year;
•The impairment losses on certain assets – financial assets at fair value through other comprehensive income, financial assets at amortised cost, non-current assets held for sale, investments in subsidiaries, joint ventures and associates, tangible assets and intangible assets;
•The assumptions used in the calculation of the post-employment benefit liabilities and commitments and other obligations;
•The useful life of the tangible and intangible assets;
•The measurement of goodwill impairment arising on consolidation;
•The calculation of provisions and the consideration of contingent liabilities;
•The fair value of certain unquoted assets and liabilities;
•The recoverability of deferred tax assets; and
•The fair value of the identifiable assets acquired and the liabilities assumed in business combinations in accordance with IFRS 3.
To update the previous estimates, the Group's management has taken into account the current macroeconomic scenario resulting from the complex geopolitical situation and the changes in inflation levels, interest rates and currency exchange rate trends, albeit with a resilient labor market in the geography where the Group operates.
The Group's management has evaluated in particular the uncertainties caused by the current environment in relation to credit risk, maintaining active oversight of clients in geographies and sectors more exposed to international trade tensions, global geopolitical uncertainty and the impact of public debt containment policies or fiscal stimulus measures, liquidity and market risks, taking into account the best available information, to estimate the impact on the credit portfolio's impairment provision, and in the debt instruments' interest rates and valuation.
In the second quarter of 2024, as a result of the significant divergence between the official exchange rate and other macroeconomic factors, primarily inflation, Grupo Santander began applying an alternative exchange rate to the official exchange rate for the Argentine peso. This rate reflects the exchange rate observed in orderly transactions between market participants under prevailing economic conditions for certain purposes, such as the repatriation of dividends from businesses in Argentine.
Given the stabilization and improvement in the country's macroeconomic outlook, during the fourth quarter of 2024 and the first quarter of 2025, this alternative rate was based on the CCL dollar ('contado con liquidación'), which is the exchange rate that results from the sale in US dollars of local bonds denominated in Argentine pesos (bonds with dual peso denomination/dollar).
108 | | January - June 2025 | ||||||
As of the second quarter of 2025, and considering the liberalization of the foreign exchange market and the elimination of restrictions on the purchase of foreign currency by individuals, and the value of this CCL dollar exchange rate does not differ significantly from other market rates and the official exchange rate, Grupo Santander started using the official exchange rate as a reference once again.
d) Contingent assets and liabilities
Note 25 to Grupo Santander's consolidated annual accounts for the year ended 31 December 2024 includes information on the contingent assets and liabilities at that date. There were no significant changes in Grupo Santander's contingent assets and liabilities from 31 December 2024 to the date of formal preparation of these interim financial statements.
e) Comparative information
The information in the interim income statement from the first semester of 2024 has been restated, as a result of the agreement for the sale of Santander Bank Polska by Grupo Santander, as required by IFRS 5 (see Notes 2 and 6).
Likewise, the information in Note 12 related to segment information for June 2024 has been restated, in accordance with the changes in the segments' composition of Grupo Santander, as required by IFRS 8 (see Note 12).
In order to interpret the changes in the balances with respect to 31 December 2024, it is necessary to take into consideration the exchange rate effect arising from the volume of foreign currency balances held by the Group in view of its geographic diversity (Note 51.b to the consolidated annual accounts for the annual year ended 31 December 2024) and the impact of the appreciation/depreciation of the various currencies against the euro in the first six months of 2025: Mexican peso (-2.73 %), US dollar (-11.58 %), Brazilian real (0.36 %), Argentinian peso (-12.05 %), Pound sterling (-3.25 %), Chilean peso (-5.78 %) and Polish zloty (0.78 %); as well as the evolution of the average exchange rates between comparable periods: Mexican peso (-14.40 %), US dollar (-0.94 %), Brazilian real (-11.49 %), Pound sterling (1.24 %), Chilean peso (-2.57 %) and Polish zloty (1.90 %).
f) Seasonality of the Grupo Santander’s transactions
The business activities carried on by Grupo Santander entities, and their transactions are not cyclical or seasonal in nature. Therefore, no specific disclosures are included in these explanatory notes to the interim financial statements for the six-month period ended 30 June 2025.
g) Materiality
In determining the note disclosures to be made on the various items in the interim financial statements or other matters, Grupo Santander, in accordance with IAS 34, took into account their materiality in relation to the interim financial statements for the six-month period ended 30 June 2025.
h) Other information
On 29 May 2025, Order HAC/532/2025 of 26 May was published, which establishes the obligation to self-assess and pay the tax on the interest and commission margins of certain financial institutions, approved by Law 7/2024 of 20 December. Banco Santander appealed against this Ministerial Order, requesting its suspension, but at the date of these interim financial statements the request had not been resolved. As a result, in June the estimated tax payment of EUR 154.3 million corresponding to the 2024 margins was made, and the corresponding asset was recorded under 'Financial assets at amortised cost - loans and advances to customers'.
The accrued interest and commission income tax expense at 30 June 2025 for 2025 interest and commission margins is recognised in the tax expense line of the income statement for an amount of EUR 174 million.
i) Events after the reporting period
On 1 July 2025, Banco Santander, S.A. announced the resolution of the offer to repurchase the preferred securities of the outstanding issue "EUR 1,500,000,000 4.375 % Non-Step-Up Non-Cumulative Contingent Convertible Perpetual Preferred Tier 1 Securities", with ISIN code XS2102912966, for an aggregate nominal amount of EUR 466.6 million.
On 2 July 2025, Banco Santander, S.A. placed a series of contingently convertible preferred securities into newly issued ordinary shares of the Bank, for a total nominal amount of EUR 1,500 million.
| January - June 2025 | | 109 | ||||||
2. Grupo Santander
Appendices I, II and III to the consolidated annual accounts for the year ended 31 December 2024 provide relevant information on Grupo Santander companies at that date and on the companies accounted for under the equity method.
Also, Note 3 to the aforementioned consolidated annual accounts includes a description of the most significant acquisitions and disposals of companies performed by Grupo Santander in 2024, 2023 and 2022.
The most significant transactions carried out during the first six months of 2025 or pending execution at 30 June 2025 is described below:
Agreement for the sale of the stake in Caceis
On 19 December 2024, Grupo Santander signed an agreement with Crédit Agricole S.A. for the sale of its 30.5 % stake in the share capital of CACEIS. As a result of the above, as of 31 December 2024, this participation was reclassified, at its carrying value, from the line item 'investments' to the line item 'Non-current assets held for sale' in the balance sheet (see Note 6). The transaction was formalized after obtaining the relevant regulatory approvals, generating a profit before taxes of EUR 231 million registered in the line item 'Gains or losses on non-current assets held for sale not classified as discontinued operations' of the income statement. Following the completion of the planned transaction, Crédit Agricole S.A. holds the 100 % of CACEIS’s share capital.
The joint depositary, custody and related asset servicing services of Santander and CACEIS in Latin America is not included in the scope of the transaction and continues to be jointly controlled by Santander and CACEIS.
Agreement for the sale of 49 % of Santander Bank Polska S.A.
On 5 May 2025, Banco Santander (Santander) announced an agreement to sell approximately 49 % of the share capital of Santander Bank Polska S.A. (Santander Polska) to Erste Group Bank AG at a price of 584 zlotys per share, as well as the 50 % of Santander Towarzystwo Funduszy Inwestycyjnych S.A. (TFI, the asset management business in Poland) owned directly by Banco Santander, S.A., for a total amount of approximately EUR 7,000 million. Following the transaction, Santander will hold approximately 13 % of Santander Polska’s share capital.
As part of this transaction, Banco Santander has agreed to acquire 60 % of Santander Consumer Bank Polska, currently owned by Santander Polska, for approximately PLN 3,105 million (EUR 726 million).
The completion of the transactions is subject to the usual conditions for this type of deal, including obtaining the relevant regulatory authorizations.
As a result of this transaction, the Group has reclassified at 30 June 2025 in consolidated the balance sheet the assets of Santander Polska and TFI under the line item 'Non-current assets held for sale', and their liabilities under the heading 'Liabilities associated with non-current assets held for sale'. Likewise, the effect of these businesses on the consolidated income statement for the first half of 2025 has been classified under the line item 'Profit/(loss) after tax from discontinued operations' (see Note 6), with the same classification applied for comparative purposes in the consolidated income statement for the first half of 2024.
Agreement for the acquisition of TSB Banking Group plc
On 1 July 2025, Banco Santander announced an agreement with Banco de Sabadell, S.A. (Sabadell) for the acquisition of TSB Banking Group plc (TSB) for approximately GBP 2,650 million (EUR 3,100 million) plus the results generated by this business between 31 March 2025, and the closing of the transaction.
The completion of the transaction is subject to approval by Sabadell’s shareholders and to the usual conditions for this type of deal, including obtaining the relevant regulatory authorizations.
110 | | January - June 2025 | ||||||
3. Shareholder remuneration system and earnings per share
a) Shareholder remuneration system
The cash remuneration paid by Banco Santander to its shareholders in the first six months of 2025 and 2024 was as follows:
| 30-06-2025 | 30-06-2024 | |||||||||||||||||||
| % of par value | Euros per share | Amount (EUR million) | % of par value | Euros per share | Amount (EUR million) | |||||||||||||||
| Ordinary shares | % | |||||||||||||||||||
| Other shares (without vote, redeemable, etc.) | ||||||||||||||||||||
| Total remuneration paid | % | |||||||||||||||||||
| Dividend paid out of profit | % | |||||||||||||||||||
| Dividend paid with a charge to reserves or share premium | ||||||||||||||||||||
| Dividend in kind | ||||||||||||||||||||
| Flexible payment | ||||||||||||||||||||
At the Board of Directors meeting held on 25 February 2025, it was agreed to pay a complementary dividend in cash against 2024 results of EUR 11 cents per share which became effective on 2 May 2025, which was approved by the general meeting of shareholders on 4 April 2025.
Likewise, on 6 February 2025 a buyback program on account of the 2024 results was started for a maximum amount of EUR 1,587 million, ended on 27 June 2025 (see Note 11.b).
At the general meeting of shareholders held on 22 March 2024, it was agreed to pay an interim dividend in cash against 2023 results of EUR 9.50 cents per share agreed by the board of directors on 19 February 2024, which became effective on 2 May 2024. Likewise, the general meeting of shareholders approved the implementation of a share buyback program, also agreed upon by the board of directors, for a maximum amount of EUR 1,459 million euros, which finalized on June 2024.
b) Earnings per share from continuing and discontinued operations
i. Basic earnings per share
Basic earnings per share for the period are calculated by dividing the net profit attributable to Grupo Santander for the first six months adjusted by the after-tax amount relating to the remuneration of contingently convertible preference shares recognised in equity by the weighted average number of ordinary shares outstanding during the period, excluding the average number of treasury shares held in the period.
Accordingly:
| 30-06-2025 | 30-06-2024 | |||||||
| Profit attributable to the Parent (EUR million) | ||||||||
| Remuneration of contingently convertible preferred securities (CCPS) (EUR million) | ( | ( | ||||||
| Of which: | ||||||||
| Profit or Loss from discontinued operations (non controlling interest net) (EUR million) | ||||||||
| Profit or Loss from continuing operations (CCPS net) (EUR million) | ||||||||
| Weighted average number of shares outstanding | ||||||||
| Basic earnings per share (euros) | ||||||||
| Of which: from discontinued operations (euros) | ||||||||
| from continuing operations (euros) | ||||||||
| January - June 2025 | | 111 | ||||||
ii. Diluted earnings per share
Diluted earnings per share for the period are calculated by dividing the net profit attributable to Grupo Santander for the first six months adjusted by the after-tax amount relating to the remuneration of contingently convertible preference shares recognised in equity and of perpetual liabilities contingently amortisable in their case by the weighted average number of ordinary shares outstanding during the period, excluding the average number of treasury shares and adjusted for all the dilutive effects inherent to potential ordinary shares (share options, warrants and convertible debt instruments).
Accordingly, diluted earnings per share were determined as follows:
| 30-06-2025 | 30-06-2024 | |||||||
| Profit attributable to the Parent (EUR million) | ||||||||
| Remuneration of contingently convertible preferred securities (CCPS) (EUR million) | ( | ( | ||||||
| Of which: | ||||||||
| Profit or Loss from discontinued operations (non controlling interest net) (EUR million) | ||||||||
| Profit or Loss from continuing operations (CCPS net) (EUR million) | ||||||||
| Weighted average number of shares outstanding | ||||||||
| Dilutive effect of options/receipt of shares | ||||||||
| Adjusted number of shares | ||||||||
| Diluted earnings per share (euros) | ||||||||
| Of which: from discontinued operations (euros) | ||||||||
| from continuing operations (euros) | ||||||||
4. Remuneration and other benefits paid to Banco Santander’s directors and senior managers
Note 5 to Grupo Santander’s consolidated annual accounts for the year ended 31 December 2024 details the remuneration and other benefits to members of Banco Santander’s Board of Directors and senior management in 2024.
Following is a summary of the most significant data on the remunerations and benefits for the six-month periods ended 30 June 2025 and 2024:
Remuneration of members of the board of directors (1)
| EUR thousand | ||||||||
| 30-06-2025 | 30-06-2024 | |||||||
| Members of the board of directors: (2) | ||||||||
| Remuneration concept | ||||||||
| Fixed salary remuneration of executive directors | ||||||||
| Variable salary remuneration of executive directors | ||||||||
| Directors' fees | ||||||||
| Bylaw-stipulated emoluments (annual emolument) | ||||||||
| Other | ||||||||
| Sub-total | ||||||||
| Transactions with shares and/or other financial instruments | ||||||||
1.The Notes to the consolidated annual accounts for 2025 will contain detailed and complete information on the remuneration paid to all the directors, including executive directors.
2.From 27 June 2024, Mr. Carlos Barrabés and Mr. Antonio Francesco Weiss joined the board, in replacement of Mr. Bruce Carnegie-Brown and Mr. Ramiro Mato.
Mr. Bruce Carnegie-Brown stepped down as member of the board on 23 March 2024 and Mr. Ramiro Mato on 27 June 2024.
112 | | January - June 2025 | ||||||
Other benefits of members of the board of directors
| EUR thousand | ||||||||
| 30-06-2025 | 30-06-2024 | |||||||
| Members of the board of directors | ||||||||
| Other benefits | ||||||||
| Advances | ||||||||
| Loans granted | ||||||||
| Pension funds and plans: Endowments and/or contributions (1) | ||||||||
| Pension funds and plans: Accumulated rights (2) | ||||||||
| Life insurance premiums | ||||||||
| Guarantees provided for directors | ||||||||
1. These correspond to the endowments and/or contributions made during the first six months of 2025 and 2024 in respect of retirement pensions, widowhood, orphanhood and permanent disability.
2. Corresponds to the rights accrued by the directors in matters of pensions. Additionally, former members of the board had at 30 June 2025 and 30 June 2024 rights accrued for this concept for EUR 42,662 thousand and EUR 44,456 thousand, respectively.
Remuneration of senior management (1)(2)
The table below includes the corresponding amounts related to remunerations of senior management at 30 June 2025 and 2024, excluding the executive directors:
| EUR thousand | ||||||||
| 30-06-2025 | 30-06-2024 | |||||||
| Senior management (1) | ||||||||
| Total remuneration of senior management (2) | ||||||||
1.During the first six months of 2025 none of the senior managers have ceased in their functions (During the first six months of 2024, remunerations received by the members of the senior managers who ceased in their functions amounted to EUR 2,594 thousand).
2.The number of members of Banco Santander's senior management, excluding executive directors, is 15 as at 30 June 2025 (13 persons at 30 June 2024)
The variable annual remuneration (or bonuses) received for fiscal year 2024, both for directors and the rest of senior management, were included in the information on remuneration included in the annual report for that year. Similarly, the variable remuneration attributable to the 2025 results, which will be submitted for approval by the Board of Directors at the appropriate time, will be included in the financial statements for the current year.
Funds and pension plans of senior management
| EUR thousand | ||||||||
| 30-06-2025 | 30-06-2024 | |||||||
| Senior management (1) | ||||||||
| Pension funds: Endowments and / or contributions (2) | ||||||||
| Pension funds: Accumulated rights (3) | ||||||||
1.During the first six months of 2025 none of the senior managers have ceased in their functions (During the first six months of 2024, contributions made by the members of the senior managers who ceased in their functions amounted to EUR 168 thousand).
2.Corresponds to the allocations and/or contributions made during the first six months of 2025 and 2024 as retirement pensions.
3.Corresponds to the rights accrued by members of senior management in the area of pensions. In addition, former members of senior management had at 30 June 2025 and 30 June 2024 rights accumulated for this same concept for EUR 73,141 thousand and EUR 83,485 thousand, respectively.
| January - June 2025 | | 113 | ||||||
5. Financial assets
a) Breakdown
The detail, by nature and category for measurement purposes, of Grupo Santander's financial assets, other than the balances relating to Cash, cash balances at central banks and other deposits on demand and Hedging derivatives, at 30 June 2025 and 31 December 2024 is as follows, presented by the nature and categories for valuation purposes:
| EUR million | |||||||||||||||||
| 30-06-2025 | |||||||||||||||||
| Financial assets held for trading | Non-trading financial assets mandatorily at fair value through profit or loss | Financial assets designated at fair value through profit or loss | Financial assets at fair value through other comprehensive income | Financial assets at amortised cost | |||||||||||||
| Derivatives | |||||||||||||||||
| Equity instruments | |||||||||||||||||
| Debt instruments | |||||||||||||||||
| Loans and advances | |||||||||||||||||
| Central Banks | |||||||||||||||||
| Credit institutions | |||||||||||||||||
| Customers | |||||||||||||||||
| Total | |||||||||||||||||
| EUR million | |||||||||||||||||
| 31-12-2024 | |||||||||||||||||
| Financial assets held for trading | Non-trading financial assets mandatorily at fair value through profit or loss | Financial assets designated at fair value through profit or loss | Financial assets at fair value through other comprehensive income | Financial assets at amortised cost | |||||||||||||
| Derivatives | |||||||||||||||||
| Equity instruments | |||||||||||||||||
| Debt instruments | |||||||||||||||||
| Loans and advances | |||||||||||||||||
| Central Banks | |||||||||||||||||
| Credit institutions | |||||||||||||||||
| Customers | |||||||||||||||||
Total | |||||||||||||||||
114 | | January - June 2025 | ||||||
Following is the gross exposure of financial assets subject to impairment stages at 30 June 2025 and 31 December 2024:
| EUR million | ||||||||||||||||||||||||||
| 30-06-2025 | 31-12-2024 | |||||||||||||||||||||||||
| Gross amount | Gross amount | |||||||||||||||||||||||||
| Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total | |||||||||||||||||||
| Financial assets at fair value through other comprehensive income | ||||||||||||||||||||||||||
| Debt instruments | ||||||||||||||||||||||||||
| Loans and advances | ||||||||||||||||||||||||||
| Credit institutions | ||||||||||||||||||||||||||
| Customers | ||||||||||||||||||||||||||
| Financial assets at amortised cost | ||||||||||||||||||||||||||
| Debt instruments | ||||||||||||||||||||||||||
| Loans and advances | ||||||||||||||||||||||||||
| Central Banks | ||||||||||||||||||||||||||
| Credit institutions | ||||||||||||||||||||||||||
| Customers | ||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||
On 30 June 2025, Grupo Santander has EUR 382 million (EUR 559 million on 31 December 2024) of exposure in impaired assets purchased with impairment, of which EUR 64 million still show signs of impairment, which mainly correspond to the business combinations carried out by Grupo Santander.
b) Impairment allowances of financial assets at amortised cost portfolio
The following is the movement that has taken place, during the six-month periods ended 30 June 2025 and 2024, in the balance of provisions that cover losses due to impairment of assets which comprise the heading balance of the financial assets at amortised cost:
| EUR million | ||||||||
| 30-06-2025 | 30-06-2024 | |||||||
| Balance as at beginning of period | ||||||||
| Impairment losses charged to income for the period | ||||||||
| Of which: | ||||||||
| Impairment losses charged to income | ||||||||
| Impairment losses reversed with a credit to income | ( | ( | ||||||
| Write-off of impaired balances against recorded impairment allowance | ( | ( | ||||||
| Exchange differences and other | ( | ( | ||||||
| Balance as at end of period | ||||||||
| Of which, relating to: | ||||||||
| Impaired assets | ||||||||
| Other assets | ||||||||
| Of which: | ||||||||
| Individually calculated | ||||||||
| Collectively calculated | ||||||||
| January - June 2025 | | 115 | ||||||
Previously written-off assets recovered during the first six months of 2025 and 2024 amount to EUR 845 million and to EUR 800 million, respectively. In addition, during the first six months of 2025 there was no recognition for losses in the income statement due to renegotiation or contractual modifications, while EUR 66 million were recognized during the first six months of 2024, mainly due to the CHF mortgage portfolio in Santander Consumer in Poland. Considering these amounts, the recorded impairment of financial assets at amortised cost is EUR 6,469 million and EUR 6,271 million during the first six months of 2025 and 2024, respectively.
Following is the movement of the loan loss provision broken down by impairment stage of loans and advances to customers recognised under 'Financial assets at amortised cost' as at 30 June 2025 and 30 June 2024:
| EUR million | ||||||||||||||
| 30-06-2025 | ||||||||||||||
| Stage 1 | Stage 2 | Stage 3 | Total | |||||||||||
| Impairment allowance as at beginning of period | ||||||||||||||
| Transfers between stages | ( | |||||||||||||
| Net changes of the exposure and modifications in the credit risk | ( | |||||||||||||
| Write-offs | ( | ( | ||||||||||||
| Exchange differences and other | ( | ( | ( | ( | ||||||||||
| Carrying amount at end of period | ||||||||||||||
| EUR million | ||||||||||||||
| 30-06-2024 | ||||||||||||||
| Stage 1 | Stage 2 | Stage 3 | Total | |||||||||||
| Impairment allowance as at beginning of period | ||||||||||||||
| Transfers between stages | ( | |||||||||||||
| Variation due to credit risk | ( | |||||||||||||
| Write-offs | ( | ( | ||||||||||||
| Exchange differences and other | ( | ( | ( | ( | ||||||||||
| Carrying amount at end of period | ||||||||||||||
c) Impaired assets of financial assets at amortised cost portfolio
The movement during the six-month periods ended 30 June 2025 and 2024, in the balance of financial assets classified at amortised cost and considered impaired by reason for the credit risk is as follows:
| EUR million | ||||||||
| 30-06-2025 | 30-06-2024 | |||||||
| Balance as at beginning of period | ||||||||
| Net additions | ||||||||
| Written-off assets | ( | ( | ||||||
| Perimeter Changes | ||||||||
| Exchange differences and other | ( | ( | ||||||
| Balance at end of period | ||||||||
This amount, after deducting the related allowances, represents Grupo Santander's best estimate of the discounted value of the flows that are expected to be recovered from the impaired assets.
116 | | January - June 2025 | ||||||
d) Collaterals received
Following is the breakdown of the value of the collaterals received to ensure the collection of the financial assets that comprise the heading of financial assets at amortized cost, distinguishing between real collaterals and other collaterals at 30 June 2025 and 31 December 2024:
| EUR million | ||||||||
| 30-06-2025 | 31-12-2024 | |||||||
| Real collaterals value | ||||||||
| Of which: Impaired | ||||||||
| Other collaterals value | ||||||||
| Of which: Impaired | ||||||||
| Total value of the collaterals received | ||||||||
e) Fair value of financial assets not measured at fair value
Following is a comparison of the carrying amounts of Grupo Santander’s financial assets measured at other than fair value and their respective fair values at 30 June 2025 and 31 December 2024:
| EUR million | ||||||||||||||
| 30-06-2025 | 31-12-2024 | |||||||||||||
| Carrying amount | Fair value | Carrying amount | Fair value | |||||||||||
| Loans and advances | ||||||||||||||
| Debt instruments | ||||||||||||||
| ASSETS | ||||||||||||||
The main valuation methods and inputs used in the estimation of the fair value of the financial assets of the previous table are detailed in Note 51.c of the consolidated annual accounts for the year 2024.
6. Non-current assets held for sale and liabilities associated with non-current assets held for sale
The detail, by nature, of Grupo Santander’s non-current assets held for sale and liabilities associated with non-current assets held for sale at 30 June 2025 and 31 December 2024 is as follows presented by nature:
| EUR million | ||||||||
| 30-06-2025 | 31-12-2024 | |||||||
| Tangible assets | ||||||||
| Foreclosed assets | ||||||||
| Of which Property assets in Spain | ||||||||
| Other tangible assets held for sale | ||||||||
| Entities on sold | ||||||||
| Caceis (Note 2) | ||||||||
| Santander Bank Polska (Note 2) | ||||||||
| Other assets | ||||||||
| Total Assets associated with non-current assets held for sale | ||||||||
| EUR million | ||||||||
| 30-06-2025 | 31-12-2024 | |||||||
| Entities on sold | ||||||||
| Santander Bank Polska (Note 2) | ||||||||
| Total Liabilities associated with non-current assets held for sale | ||||||||
| January - June 2025 | | 117 | ||||||
The balance of the provisions for tangible assets at 30 June 2025 is EUR 2,539 million (EUR 2,606 million at 31 December 2024). The charges recorded in the first six months of 2025 and 2024 amounted to EUR 54 million and EUR 80 million, respectively, and the recoveries undergone during those periods amount to EUR 7 million and EUR 25 million, respectively.
Assets and liabilities from discontinued operations
The following are the condensed consolidated balance sheet, condensed consolidated profit and loss accounts, and condensed consolidated cash flow statements for the Polish business for sale:
Condensed balance sheets of companies held for sale - Santander Bank Polska
| EUR million | |||||
| Condensed assets | 30-06-2025 | ||||
| Cash, cash balances at central banks and other deposits on demand | |||||
| Financial assets held for trading | |||||
| Financial assets designated at fair value through other comprehensive income | |||||
| Financial assets at amortised cost | |||||
| Intangible assets | |||||
| Tax assets | |||||
| Other assets | |||||
| TOTAL ASSETS | |||||
| EUR million | |||||
| Condensed liabilities | 30-06-2025 | ||||
| Financial liabilities held for trading | |||||
| Financial liabilities at amortised cost | |||||
| Provisions | |||||
| Tax liabilities | |||||
| Other liabilities | |||||
| TOTAL LIABILITIES | |||||
| EUR million | |||||
| Other comprehensive income | 30-06-2025 | ||||
| Items that will not be reclassified to profit or loss | |||||
| Actuarial gains or losses on defined benefit pension plans | |||||
| Changes in the fair value of equity instruments measured at fair value through other comprehensive income | |||||
| Items that may be reclassified to profit or loss | ( | ||||
| Hedges of net investments in foreign operations (effective portion) | ( | ||||
| Exchange differences | ( | ||||
| Cash flow hedges (effective portion) | |||||
| Debt instruments at fair value with changes in other comprehensive income | ( | ||||
| Share in other income and expenses recognised in investments, joint ventures and associates | ( | ||||
118 | | January - June 2025 | ||||||
Condensed income statements of companies held for sale - Santander Bank Polska
| EUR million | ||||||||
| Condensed consolidated income statements | 01-01-2025 to 30-06-2025 | 01-01-2024 to 30-06-2024 | ||||||
| Interest income | ||||||||
| Dividend income | ||||||||
| Investments accounted for using the equity method | ||||||||
| Net commissions | ||||||||
| Net trading income | ||||||||
| Other operating results | ( | ( | ||||||
| Total income | ||||||||
| Administrative expenses, depreciation and amortisation cost | ( | ( | ||||||
Loan-loss provisions (*) | ( | ( | ||||||
| Other results and provisions | ( | ( | ||||||
| Profit before taxes | ||||||||
| Tax expense | ( | ( | ||||||
| Profit of the year | ||||||||
(*) Of which EUR 63 million correspond to renegotiations or contractual modifications at 30 June 2025 (EUR 194 million at 30 June 2024).
Condensed statements of cash flows of companies held for sale - Santander Bank Polska
| EUR million | ||||||||
| Condensed consolidated statements of cash flows | 30-06-2025 | 31-12-2024 | ||||||
| A) Cash flows from operating activities | ||||||||
| B) Cash flows from investing activities | ( | ( | ||||||
| C) Cash flows from financing activities | ( | ( | ||||||
| D) Effect of foreign exchange rate differences | ||||||||
| E) Net increase/(decrease) in cash and cash equivalents | ( | |||||||
7. Tangible assets
a) Changes in the period
In the first six months of 2025 and 2024, tangible assets (rights of use are not included) were acquired for EUR 3,197 million and EUR 4,738 million, respectively.
Likewise, in the first six months of 2025 and 2024 tangible asset items were disposed of with a carrying amount of EUR 2,927 million and EUR 2,979 million, generating a net profit of EUR 1 million and EUR 14 million, respectively.
b) Property, plant and equipment purchase commitments
At 30 June 2025 and 2024, Grupo Santander did not have any significant commitments to purchase property, plant and equipment items.
c) Leasing rights
As of 30 June 2025, Grupo Santander has tangible assets under lease for the amount of EUR 1,646 million (EUR 1,918 million at 31 December 2024).
| January - June 2025 | | 119 | ||||||
8. Intangible assets
The detail of Intangible Assets - Goodwill at 30 June 2025 and 31 December 2024, based on the cash-generating units giving rise thereto, is as follows:
| EUR million | ||||||||
| 30-06-2025 | 31-12-2024 | |||||||
| Banco Santander (Brazil) | ||||||||
| SAM Investment Holdings Limited | ||||||||
| Santander Consumer Germany | ||||||||
| Santander Portugal | ||||||||
| Santander España | ||||||||
| Santander US Auto | ||||||||
| Santander Holding USA (ex. Auto) | ||||||||
| Santander UK | ||||||||
| Banco Santander - Chile | ||||||||
| Grupo Financiero Santander (Mexico) | ||||||||
| Ebury Partners | ||||||||
| Santander Consumer Nordics | ||||||||
| Santander Bank Polska | ||||||||
| Other entities | ||||||||
| Total Goodwill | ||||||||
During the first six months of 2025 there has been an decrease in goodwill of EUR 1,478 million, of which EUR 1,178 million corresponds to the reclassification in the consolidated balance sheet of the goodwill of Santander Bank Polska under the heading 'Non-current assets held for sale' (see Notes 2 and 6). The remaining amount is mainly due to exchange differences (see Note 11), which in accordance with current regulations, have been recorded with a credit to the heading 'Other comprehensive income - Items that can be reclassified in results- Foreign currency translation' of equity through the Statement of recognized income and expenses.
Note 17 of the consolidated annual accounts for the year ended 31 December 2024 includes detailed information on the procedures followed by Grupo Santander to analyse the potential impairment of the goodwill recognised with the respect to its recoverable amount and to recognise the related impairment losses, where appropriate.
In accordance with IAS 36, a Cash Generating Unit (CGU) to which goodwill has been assigned should be subjected to an annual impairment test, and when there are signs of impairment.
In accordance with all mentioned before and the analysis made of the information available on the evolution of the different cash-generating units that could reveal the existence of indications of impairment, the directors of the Grupo Santander have concluded that during the first six months of 2025 , there were no triggers that required the recording of impairments.
120 | | January - June 2025 | ||||||
9. Financial liabilities
a) Breakdown
The following is a breakdown of Grupo Santander's financial liabilities, other than the balances corresponding to the Derivatives - hedge accounting heading, as of 30 June 2025 and 31 December 2024, presented by nature and categories for valuation purposes:
| EUR million | ||||||||||||||||||||
| 30-06-2025 | 31-12-2024 | |||||||||||||||||||
| Financial liabilities held for trading | Financial liabilities designated at fair value through profit or loss | Financial liabilities at amortised cost | Financial liabilities held for trading | Financial liabilities designated at fair value through profit or loss | Financial liabilities at amortised cost | |||||||||||||||
| Derivatives | ||||||||||||||||||||
| Short Positions | ||||||||||||||||||||
| Deposits | ||||||||||||||||||||
| Central banks | ||||||||||||||||||||
| Credit institutions | ||||||||||||||||||||
| Customer | ||||||||||||||||||||
| Debt instruments | ||||||||||||||||||||
| Other financial liabilities | ||||||||||||||||||||
Total | ||||||||||||||||||||
b) Information on issuances, repurchases or redemptions of debt instruments issued
The detail of the balance of debt instruments issued according to their nature is:
| EUR million | ||||||||
| 30-06-2025 | 31-12-2024 | |||||||
| Bonds and debentures outstanding | ||||||||
| Subordinated | ||||||||
| Promissory notes and other securities | ||||||||
| Total debt instruments issued | ||||||||
The detail, at 30 June 2025 and 2024, of the outstanding balance of the debt instruments, excluding promissory notes, which at these dates had been issued by Banco Santander or any other Group entity is disclosed below. Also included is the detail of the changes in this balance in the first six months of 2025 and 2024:
| EUR million | ||||||||||||||||||||
| 30-06-2025 | ||||||||||||||||||||
| Opening balance as at 01-01-2025 | Perimeter | Issuances or placements | Repurchases or redemptions | Exchange rate and other adjustments | Closing balance as at 06-30-25 | |||||||||||||||
| Bonds and debentures outstanding | ( | ( | ||||||||||||||||||
| Subordinated | ( | ( | ||||||||||||||||||
| Bonds and debentures outstanding and subordinated liabilities issued | ( | ( | ||||||||||||||||||
| January - June 2025 | | 121 | ||||||
| EUR million | ||||||||||||||||||||
| 30-06-2024 | ||||||||||||||||||||
| Opening balance as at 01-01-2024 | Perimeter | Issuances or placements | Repurchases or redemptions | Exchange rate and other adjustments | Closing balance as at 06-30-24 | |||||||||||||||
| Bonds and debentures outstanding | ( | ( | ||||||||||||||||||
| Subordinated | ( | |||||||||||||||||||
| Bonds and debentures outstanding and subordinated liabilities issued | ( | ( | ||||||||||||||||||
On 29 March 2025, Banco Santander, S.A. carried out an issue for an amount of EUR 50 million with ISIN code XS1539846896.
On 19 March 2025, Banco Santander, S.A., prepaid all the Tier 1 Contingently Convertible Preferred Securities with ISIN code XS1793250041 for a total nominal amount of EUR 187.6 million and which trade on the Irish Stock Market 'Global Exchange Market'.
On 18 March 2025, Banco Santander, S.A. carried out an issue for an amount of EUR 1,500 million with ISIN code XS1201001572.
On 6 March 2025, Banco Santander, S.A. issued subordinated obligations for an amount of AUD 350 million (valued at EUR 202 million) for a term of 10 years with ISIN code AU3FN0096376. The issue was made at 100.00 % and the coupon of the issue was fixed at a floating rate of 3mBBSW+192 bps quarterly for the first 5 years, with a redemption option in March 2030. In the event of non-amortization, the coupon will remain at 3mBBSW+192 bps.
On 6 March 2025, Banco Santander, S.A. carried out an issue of subordinated debentures for an amount of AUD 250 million (valued at EUR 144 million) for a term of 10 years with ISIN code AU3CB0319184. The issue was made at 100.00 % and the coupon of the issue was set at 5.80 % semi-annually for the first 5 years, with a redemption option in March 2030, the coupon being revised, in the event of non-redemption, at a variable rate equivalent to a margin of 192 points plus the 3mBBSW variable rate.
On 17 February 2025, Banco Santander, S.A. prepaid EUR 600.8 million out of a total of EUR 1,500 million of the transaction with ISIN XS138406464587 following the tender announcement launched on 6 February 2025.
On 17 February 2025, Banco Santander, S.A. prepaid EUR 563.6 million euros out of a total of EUR 1,000 million of the transaction with ISIN XS1548444816 following the tender announcement launched on 6 February 2025.
On 20 May 2024, Banco Santander, S.A., proceeded to partially redeem in advance the contingently convertible preferred shares with ISIN code XS1793250041, for a total nominal amount of 1,312.4 million euros and which are traded on the market of the Irish Stock Exchange 'Global Exchange Market', leaving the amount in circulation at 187.6 million euros.
On 20 May 2024, Banco Santander, S.A. carried out a placement of preference shares contingently convertible into newly issued ordinary shares of the Bank (PPCC), for a nominal amount of 1,500 million euros. The Issuance has been made at par and the remuneration of the PPCC, whose payment is subject to certain conditions and is also discretionary, has been set at 7 % annually for the first six years , being reviewed every five years thereafter by applying a margin of 443.2 basis points over the five-year mid-swap rate.
On 14 March 2024, Banco Santander, S.A. issued subordinated obligations for an amount of USD 1,250 million (valued at EUR 1,158 million) for a term of 10 years. The issuance was made at par and the issue coupon was set at 6.35 % per year, payable bi-annually.
On 8 February 2024, Banco Santander, S.A., proceeded to prepay all of the contingently convertible Tier 1 preferred shares with ISIN code XS1951093894, for a total nominal amount of USD 1,200 million (valued at EUR 1,110 million) and that were traded on the Irish Stock Exchange 'Global Exchange Market'.
On 22 January 2024, Banco Santander, S.A. issued subordinated bonds for an amount of EUR 1,250 million for a term of 10 years and 3 months. The issue was carried out at 99.74 % and the issue coupon was set at 5.00 % per year for the first 5 years and 3 months, with an amortization option in April 2029, reviewing the coupon, in case of non-amortization, at a fixed rate equivalent to a margin of 250 points plus the 5-year Euro swap rate.
c) Other issuances guaranteed by Grupo Santander
At 30 June 2025 and 2024, there were no debt instruments issued by associates or non-Group third parties (unrelated) that had been guaranteed by Banco Santander or any other Group entity.
122 | | January - June 2025 | ||||||
d) Fair value of financial liabilities not measured at fair value
Following is a comparison between the value by which Grupo Santander’s financial liabilities are recorded that are measured using criteria other than fair value and their corresponding fair value at 30 June 2025 and 31 December 2024:
| EUR million | ||||||||||||||
| 30-06-2025 | 31-12-2024 | |||||||||||||
| Carrying amount | Fair value | Carrying amount | Fair value | |||||||||||
| Deposits | ||||||||||||||
| Debt instruments | ||||||||||||||
| Liabilities | ||||||||||||||
Additionally, other financial liabilities are accounted for EUR 44,297 million and EUR 39,916 million as of 30 June 2025 and 31 December 2024, respectively.
10. Provisions
a) Provisions for Pensions and other post-retirements obligations and Other long term employee benefits
The variation experienced by the balance of the Pensions and other post-retirements obligations and other long-term employee benefits from 31 December 2024 to 30 June 2025, is mainly due to net provisions against equity for changes in financial assumptions and other experience adjustments, and also to benefit payments, premiums and contributions (see Note 11.d).
b) Provisions for taxes and other legal contingencies and Other provisions
Set forth below is the detail, by type of provision, of the balances at 30 June 2025 and at 31 December 2024 of Provisions for taxes and other legal contingencies and Other provisions. The types of provision were determined by grouping together items of a similar nature:
| EUR million | ||||||||
| 30-06-2025 | 31-12-2024 | |||||||
| Provisions for taxes | ||||||||
| Provisions for employment-related proceedings (Brazil) | ||||||||
| Provisions for other legal proceedings | ||||||||
| Provision for customer remediation | ||||||||
| Provision for restructuring | ||||||||
| Other | ||||||||
Relevant information is set forth below in relation to each type of provision shown in the preceding table:
The provisions for taxes include provisions for tax-related proceedings.
The provisions for employment-related proceedings (Brazil) relate to claims filed by trade unions, associations, the prosecutor’s office and ex-employees claiming employment rights to which, in their view, they are entitled, particularly the payment of overtime and other employment rights, including litigation concerning retirement benefits. The number and nature of these proceedings, which are common for banks in Brazil, justify the classification of these provisions in a separate category or as a separate type from the rest. The Group calculates the provisions associated with these claims in accordance with past experience of payments made in relation to claims for similar items. When claims do not fall within these categories, a case-by-case assessment is performed and the amount of the provision is calculated in accordance with the status of each proceeding and the risk assessment carried out by the legal advisers.
The provisions for other legal proceedings include provisions for court, arbitration or administrative proceedings (other than those included in other categories or types of provisions disclosed separately) brought against Grupo Santander companies.
The provisions for customer remediation include mainly the estimated cost of payments to remedy errors relating to the sale of certain products in the UK, as well as the estimated amount related to the floor clauses of Banco Popular Español, S.A.U. To calculate the provision for customer remediation, the best estimate of the provision made by management is used, which is based on the estimated number of claims to be received and, of these, the number that will be accepted, as well as the estimated average payment per case.
The provisions for restructuring include only the costs arising from restructuring processes carried out by the various Group companies.
Lastly, the Other heading contains very atomized and individually insignificant provisions, such as the provisions to cover the operational risk of the different offices of the Group.
| January - June 2025 | | 123 | ||||||
Qualitative information on the main litigation is provided in Note 10.c.
The Group's general policy is to record provisions for tax and legal proceedings in which the Group assesses the chances of loss to be probable and the Group does not record provisions when the chances of loss are possible or remote. Grupo Santander determines the amounts to be provided for as its best estimate of the expenditure required to settle the corresponding claim based, among other factors, on a case-by-case analysis of the facts and the legal opinion of internal and external counsel or by considering the historical average amount of the loss incurred in claims of the same nature. The definitive date of the outflow of resources embodying economic benefits for the Group depends on each obligation. In certain cases, the obligations do not have a fixed settlement term and, in others, they depend on legal proceedings in progress.
With respect to changes in provisions in the first six months of 2025, for employment and other legal proceedings, in Brazil, provisions of EUR 241 million and EUR 116 million were recorded, making payments of EUR 167 million and EUR 82 million, respectively.
c) Litigation and other matters
i. Tax-related litigation
At 30 June 2025 the main tax-related proceedings concerning the Group were as follows:
•Legal actions filed by Banco Santander (Brasil) S.A. and other Group entities to avoid the application of Law 9.718/98, which modifies the basis to calculate Programa de Integraçao Social (PIS) and Contribuição para Financiamento da Seguridade Social (COFINS), extending it to all the entities income, and not only to the income from the provision of services. In relation of Banco Santander (Brasil) S.A. process, in 2015 the Federal Supreme Court (FSC) admitted the extraordinary appeal filed by the Federal Union regarding PIS, and dismissed the extraordinary appeal lodged by the Brazilian Public Prosecutor's Office regarding COFINS contribution, confirming the decision of Federal Regional Court favourable to Banco Santander (Brasil) S.A. of August 2007. The Federal Supreme Court also admitted the appeals related to the other Group entities both for PIS and COFINS. On June 13, 2023, the Federal Supreme Court ruled unfavorably two cases through General Repercussion (Theme 372), including Banco Santander (Brasil) S.A. case. The Bank has filed a new appeal, considering the possible loss as a contingent liability. The cases of the other Group entities are no longer susceptible of appeal and a provision has been recognized for the amount of the estimated loss.
•Banco Santander (Brasil) S.A. and other Group companies in Brazil have appealed against the assessments issued by the Brazilian tax authorities questioning the deduction of loan losses in their income tax returns (Imposto sobre a Renda das Pessoas Jurídicas - IRPJ - and Contribuçao Social sobre o Lucro Liquido -CSLL-) in relation to different administrative processes of various years on the ground that the requirements under the applicable legislation were not met. The appeals, which involves several cases, are pending decision in different administrative and judicial instances. No provision was recognised in connection with the amount considered to be a contingent liability.
•Banco Santander (Brasil) S.A. and other Group companies in Brazil are involved in administrative and legal proceedings against several municipalities that demand payment of the Service Tax on certain items of income from transactions not classified as provisions of services. There are several cases in different judicial instances. A provision was recognised in connection with the amount of the estimated loss.
•Banco Santander (Brasil) S.A. and other Group companies in Brazil are involved in administrative and legal proceedings against the tax authorities in connection with the taxation for social security purposes of certain items which are not considered to be employee remuneration. There are several cases in different judicial instances. A provision was recognised in connection with the amount of the estimated loss.
•In May 2003 the Brazilian tax authorities issued separate infringement notices against Santander Distribuidora de Títulos e Valores Mobiliarios, Ltda. (DTVM, actually Santander Brasil Tecnología S.A.) and Banco Santander (Brasil) S.A. in relation to the Provisional Tax on Financial Movements (Contribuição Provisória sobre Movimentação Financeira) of the years 2000 to 2002. The administrative discussion ended unfavourably for both companies, and on July 3, 2015, filed a lawsuit requesting the cancellation of both tax assessments. The lawsuit was judged unfavourably in first instance. Therefore, both plaintiffs appealed to the court of second instance. On December 2020, the appeal was decided unfavourably. Against the judgment, the bank filed a motion for clarification which has not been accepted. Currently it is appealed to higher courts. There is a provision recognized for the estimated loss.
•In December 2010 the Brazilian tax authorities issued an infringement notice against Santander Seguros S.A. (Brasil), (currently Zurich Santander Brasil Seguros e Previdência S.A.), as the successor by merger to ABN AMRO Brasil dois Participações S.A., in relation to income tax (IRPJ and CSLL) for 2005, questioning the tax treatment applied to a sale of shares of Real Seguros, S.A. The administrative discussion ended unfavourably, and the CARF decision has been appealed at the Federal Justice. As the former parent of Santander Seguros S.A. (Brasil) (currently Zurich Santander Brasil Seguros e Previdência S.A.), Banco Santander (Brasil) S.A. is liable in the event of any adverse outcome of this proceeding. No provision was recognised in connection with this proceeding as it is considered to be a contingent liability.
•In November 2014 the Brazilian tax authorities issued an infringement notice against Banco Santander (Brasil) S.A. in relation to corporate income tax (IRPJ and CSLL) for 2009 questioning the tax-deductibility of the amortisation of the goodwill of Banco ABN AMRO Real S.A. performed prior to the absorption of this bank by Banco Santander (Brasil) S.A., but accepting the amortisation performed after the merger. The Bank appealed before the Higher Chamber of CARF, and a final favourable decision was obtained in April 2024. No provision was recognised in connection with this proceeding as it was considered to be a contingent liability.
124 | | January - June 2025 | ||||||
•Banco Santander (Brasil) S.A. has also appealed against infringement notices issued by the tax authorities questioning the tax deductibility of the amortisation of the goodwill arising on the acquisition of Banco Comercial e de Investimento Sudameris S.A from years 2007 to 2012. In May and October 2024, the appeal related to period 2009 to 2012 was finally rejected by the CARF and the resolution was appealed at the Federal Justice. No provision was recognised in connection with this matter as it was considered to be a contingent liability.
•Banco Santander (Brasil) S.A. and other companies of the Group in Brazil are undergoing administrative and judicial procedures against Brazilian tax authorities for not admitting tax compensation with credits derived from other tax concepts, not having registered a provision for the amount considered to be a contingent liability.
•Banco Santander (Brasil) S.A. is involved in appeals in relation to infringement notices initiated by tax authorities regarding the offsetting of tax losses in the CSLL of year 2009 and 2019. The appeals are pending decision at the administrative level. No provision was recognised in connection with this matter as it is considered to be a contingent liability.
•Banco Santander (Brasil) S.A. filed a suspensive judicial measure aiming to avoid the withholding income tax (Imposto sobre a Renda Retido na Fonte - IRRF), on payments derived from technology services provided by Group foreign entities. A favorable decision was handed down and an appeal was filed by the tax authority at the Federal Regional Court, where it awaits judgment. No provision was recognized as it is considered to be a contingent liability.
•Brazilian tax authorities have issued infringement notices against Getnet Adquirência e Serviços para Meios de Pagamento S.A and Banco Santander (Brasil) S.A. as jointly liable in relation to corporate income tax (IRPJ and CSLL) for 2014 to 2018 questioning the tax-deductibility of the amortization of the goodwill from the acquisition of Getnet Tecnologia Proces S.A., considering that the company would not have complied with the legal requirements for such amortization. The tax assessment notices were appealed to the CARF. In 2024, the CARF issued a favourable partial decision on both infraction notices. In December 2024, the tax authorities issued a new infringement notice for 2019 and 2020. No provision was recognized as it is considered to be a contingent liability.
The total amount for the aforementioned Brazil lawsuits that are fully provisioned is EUR 729 million, and for lawsuits that qualify as contingent liabilities is EUR 4,949 million.
At the date of approval of these interim financial statements, there are other less significant tax disputes.
ii. Non-tax-related proceedings
At 30 June 2025 the main non-tax-related proceedings concerning the Group were as follows:
•Payment Protection Insurance (PPI): AXA France IARD and AXA France Vie (former GE Capital Corporation Group entities, known as Financial Insurance Company Ltd (FICL) and Financial Assurance Company Ltd (FACL), acquired by AXA SA in 2015) (together, AXA France) brought a claim against (i) Santander Cards UK Limited (formerly known as GE Capital Bank Limited (GECB), which was acquired by Banco Santander, S.A. in 2008 and subsequently transferred to Santander UK plc); and (ii) Santander Insurance Services UK Limited (a Banco Santander, S.A. subsidiary) (SISUK and together with GECB the Santander Entities). The claim relates to the allocation of liability for compensation and associated costs in respect of a large number of PPI policies distributed by GECB pre-2005, which were underwritten by FICL and FACL.
On 25 July 2025, the Commercial Court of England and Wales handed down its judgment in relation to the claim brought by AXA France (the Judgment). It found against SISUK in relation to AXA France’s claim pursuant to an indemnity in an agency agreement entered into between GECB, FICL and FACL in 2000 and novated by GECB to SISUK in 2010. It also found GECB negligent in the sale of PPI policies, but this element of the claim was time barred to PPI policies sold in the period between 2002 and 2005 and overlaps with the indemnity claim. The order related to the Judgment requires SISUK to pay the amount of the judgment plus interest by 15 August.
The Santander Entities disagree with the Judgment. Following the Commercial Court’s refusal for permission to appeal, SISUK will seek permission directly from the Court of Appeal. To date, Group maintains provisions that reflect its best estimate of the exposure corresponding to this litigation in view of its risk assessment and the legal actions available to it.
No customers have suffered loss as a consequence of the claim brought by AXA France or the Judgment, nor does it impact upon past redress paid to customers for PPI complaints.
•Motor Finance Broker Commissions: following the Financial Conduct Authority’s (FCA) Motor Market review in 2019 which resulted in a change in rules in January 2021, Santander Consumer (UK) plc (SCUK) has received several of county court claims and complaints in respect of its historical use of discretionary commission arrangements (DCAs) prior to the 2021 rule changes. In January 2024 the FCA commenced a review of the use of DCAs between lenders and credit brokers (the FCA Review). Pending the conclusion of its review, the FCA first paused the handling of DCA complaints and then extended this to motor finance commission related complaints which are now paused until 4 December 2025. A claim was issued against SCUK, Santander UK plc and others in the Competition Appeal Tribunal , alleging that SCUK’s historical DCAs in respect of used car financing operated in breach of the Competition Act 1998. This is currently paused until the end of October 2025 connected to the outcome of the FCA Review.
The outcome of the FCA’s Review will likely be informed by an appeal to the Supreme Court heard in early April 2025 (with judgment pending) of the Court of Appeal’s judgment of October 2024 relating to two other lenders, and by an appeal to the Court of Appeal of the High Court’s judicial review of a final decision by the Financial Ombudsman Service against another lender, which has been adjourned pending the aforementioned Supreme Court decision.
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On 11 March 2025 the FCA announced that if, considering the Supreme Court's decision, it concludes motor finance customers have lost out from widespread failings by firms, then it was likely it would consult on an industry-wide redress scheme. The FCA committed to updating the market on its proposed approach within 6 weeks of the Supreme Court’s decision.
In light of the Court of Appeal’s judgment of October 2024, the Santander UK Group recognised a provision of GBP 293 million (EUR 341.8 million) in its financial results for 2024. This included estimates for operational and legal costs and potential awards, based on various scenarios using a range of assumptions, including the outcomes of the appeals above. There continue to be significant uncertainties as to the extent of any misconduct, if any, as well as the perimeter of commission models, and the nature, extent and timing of any remediation action if required. As such, the ultimate financial impact could be materially different than the amount provided, and it is not practicable to quantify the extent of any remaining contingent liability.
•Delforca: dispute arising from equity swaps entered into by Gaesco (now Delforca 2008, S.A. (Delforca)) on shares of Inmobiliaria Colonial, S.A. Banco Santander, S.A. is claiming to Delforca before the Court of Barcelona in charge of the bankruptcy proceedings, a total of EUR 66 million from the liquidation resulting from the early termination of financial transactions due to Delforca's non-payment of the equity swaps. In the same bankruptcy proceedings, Delforca and Mobiliaria Monesa, S.A., parent of Delforca (Monesa) have in turn claimed the Bank to repay EUR 57 million, which the Bank received for the enforcement of the agreed guarantee, as a result of the aforementioned liquidation. On 16 September 2021 the Commercial Court Number 10 of Barcelona has ordered Delforca to pay the Bank EUR 66 million plus EUR 11 million in interest and has dismissed the claims filed by Delforca. This decision has been appealed by Delforca, Monesa and the bankruptcy administrator. On 1 June 2023, the appeal hearing took place and on 15 November 2023 the Provincial Court of Barcelona rendered a judgment dismissing the appeals filed by Delforca, Monesa and the bankruptcy administrator and confirming the first instance judgment. Delforca and Monesa (not the bankruptcy administrator) have filed an appeal in cassation before the Supreme Court against the judgment of the Provincial Court of Barcelona.
Separately, Monesa, filed in 2009 a civil procedure with the Courts of Santander against the Bank claiming damages that have not been specified to date. The procedure is suspended.
•Planos Económicos': like the rest of the banking system in Brazil, Santander Brazil has been the target of customer complaints and collective civil suits stemming mainly from legislative changes and its application to bank deposits (economic plans). At the end of 2017, an agreement between regulatory entities and the Brazilian Federation of Banks (Febraban) with the purpose of closing the lawsuits was reached and was approved by the Supremo Tribunal Federal (the STF and the Collective Agreement). Discussions focused on specifying the amount to be paid to each affected client according to the balance in their notebook at the time of the plan. Finally, the total value of the payments will depend on the number of adhesions there may be and the number of savers who have proved the existence of the account and its balance on the date the indexes were changed. In November 2018, the STF ordered the suspension of all economic plan proceedings for two years from May 2018. On 29 May 2020, the STF approved the extension of the Collective Agreement for 5 additional years starting from 3 June 2020. Condition for this extension was to include in the Collective Agreement actions related to the 'Collor I Plan'. On May 2025, the STF issued the judgment recognizing the constitutionality of the Bresser, Verão, Collor I and II plans, guaranteeing savers the receipt of the amounts established in the Collective Agreement and setting a deadline of 24 months for new adhesions. As of 30 June 2025, the provision recorded for the economic plan proceedings amounts to EUR 176.3 million.
•Banco Popular´s acquisition: after the declaration of the resolution of Banco Popular, some investors filed claims against the EU’s Single Resolution Board decision, and the FROB's resolution executed in accordance with the aforementioned decision. Likewise, numerous appeals were filed against Banco Santander, S.A. alleging that the information provided by Banco Popular was erroneous and requesting from Banco Santander, S.A. the restitution of the price paid for the acquisition of the investment instruments or, where appropriate, the corresponding compensation.
In relation to the appeals filed before the General Court of the European Union (EGC) and the Court of Justice of the European Union (CJEU), all appeals were either dismissed or discontinued. Currently, there are no ongoing appeals.
On the other hand, in relation to the lawsuits initiated by investors directly against Banco Santander, S.A. derived from the acquisition of Banco Popular, there are five preliminary rulings pending: three preliminary rulings referred by the First Instance Court No. 3 of Santa Coloma de Farners in April 2023 concerning pre-emptive subscription rights and the compatibility of the principles of proportionality and legal certainty with the bringing of legal actions by former holders of pre-emptive subscription rights and shares against the entity issuing the securities or against the entity succeeding it, which is currently suspended; and (ii) two preliminary rulings referred by the Supreme Court in November 2023 regarding a holder of subordinated bonds who filed a claim against Banco Popular before the resolution; and which will be resolved by the CJEU on 11 September 2025.
On 4 March 2024, in the context of preliminary proceedings 42/2017, the Central Court of Instruction No. 4 issued a ruling transforming the proceedings into Summary Proceedings and terminating the investigation phase. The ruling considers that the circumstantial evidence resulting from the investigation which could constitute a crime is basically the following: (i) an alleged misrepresentation in the prospectus of the 2016 capital increase of Banco Popular; (ii) an alleged misrepresentation in the annual accounts of Banco Popular for 2015, the interim financial statements for 2016 and the annual accounts for 2016; and (iii) the offer to the market of a distorted amount of regulatory capital, after the capital increase of 2016 (for allegedly having been granted by Banco Popular financing to clients for the subscription of shares in the aforementioned capital increase, without discounting it from the regulatory capital). According to the aforementioned ruling, these facts could constitute the crimes of fraud of investors (art. 282 of the Criminal Code) and accounting falsehood (art. 290 of the Criminal Code). All appeals filed against the ruling have been dismissed.
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The accusing parties, including the Public Prosecutor's Office, filed their indictment briefs on 28 October 2024, which included requests for compensation for civil liability and the request that not only the defendants but also several entities are held liable for such compensation, including Banco Santander, S.A., the auditing firm and several insurance companies. Following the filing of the indictment briefs, on 22 November 2024, the Court (Investigating Judge) issued an order for the opening of the oral trial against the defendants and civil liability parties, including Banco Santander, S.A. as a possible civil liable party. However, in line with what was determined by the Spanish National Court and confirmed by the Supreme Court concerning the hypothetical succession of Banco Popular by Banco Santander, S.A., the oral trial has not been opened against the Bank as possible direct civil liable party.
The order to open the oral trial states that the plaintiffs have requested compensation for civil liability for a total amount of EUR 2,277.65 million. Additionally, the order rejects the imposition of the guarantee requested by several of the accusing parties, considering that it is unnecessary to secure the outcome of the trial. The defendants and potential civil liable parties submitted their defense writs on 4 February 2025. After that, the proceedings will be forwarded to the Criminal Chamber of the National Court for the oral trial.
Regarding the civil liability, the Bank considers that it has no subsidiary civil liability, in light of the CJEU’s rulings issued (i) on 5 May 2022, determining that Directive 2014/59/EU of the European Parliament and of the Council does not allow that, after the total redemption of the shares of the share capital of a credit institution or an investment services company subject to a resolution procedure, the shareholders who have acquired shares within the framework of a public subscription offer issued by said company before the start of such a resolution procedure, exercise against that entity or against its successor, an action for liability for the information contained in the prospectus, under Directive 2003/71/EC of the European Parliament and of the Council, or an action for annulment of the subscription contract for those shares, which, taking into account its retroactive effects, gives rise to the restitution of the equivalent value of said shares, plus the interest accrued from the date of execution of said contract; and (ii) on 5 September 2024, confirming that Directive 2014/59 precludes, after the total write down of the shares in a credit institution under resolution, that persons who have purchased (a) capital instruments that have been converted into shares in that credit institution before the adoption of resolution measures against it, or (b) capital instruments which, in the context of that procedure, have been converted into shares in that credit institution, which were subsequently transferred to another credit institution, from bringing, against that institution or against its successor entity, an action for damages on the basis of flawed and incorrect information provided in the prospectus or a declaration of nullity. Notwithstanding the foregoing, the Spanish National Court has stated that this issue shall be resolved within the ongoing proceedings.
The estimated cost of any compensation to shareholders and bondholders of Banco Popular recognized in the 2017 accounts amounted to EUR 680 million, of which EUR 535 million were applied to the commercial loyalty program. On 15 December 2024, Banco Santander, S.A., proceeded to redeem in advance voluntarily all bonds in circulation regarding such commercial action. The CJEU judgements of 5 May 2022 and of 5 September 2024 referred above, represented a very significant reduction in the risk associated with these claims.
•German shares investigation: the Cologne Public Prosecution Office is conducting an investigation against the Bank, and other group entities based in UK - Santander UK plc, Santander Financial Services Plc and Cater Allen International Limited -, in relation to a particular type of tax dividend linked transactions known as cum-ex transactions.
The Group is cooperating with the German authorities. According to the state of the investigations, the result and the effects for the Group, which may potentially include the imposition of material financial consequences (penalties and/or disgorgement of proceeds), cannot be anticipated. For this reason, the Bank has not recognized any provisions in relation to the potential imposition of financial penalties.
•Banco Santander, S.A. was sued in a legal proceeding in which the plaintiff alleges that the Bank breached his contract as CEO of the institution: in the lawsuit, the claimant mainly requested a declaratory ruling upholding the existence, validity and effectiveness of such contract and its enforcement together with the payment of certain amounts. For the case that the main request is not granted, the claimant sought a compensation for a total amount of approximately EUR 112 million or, an alternative relief for other minor amounts. Banco Santander, S.A. answered to the legal action stating that the conditions to which the appointment of that position was subject to were not met; that the executive services contract required by law was not concluded; and that in any case, the parties could terminate the contract without any justified cause.
On 17 May 2021, the plaintiff reduced his claims for compensation to EUR 61.9 million. On 9 December 2021, the Court upheld the claim and ordered the Bank to compensate the claimant in the amount of EUR 67.8 million. By court order of 13 January 2022, the Court corrected and supplemented its judgment, reducing the total amount to be paid by the Bank to EUR 51.4 million and clarifying that part of this amount (buy out) was to be paid under the terms of the offer letter, i.e., entirely in Banco Santander shares, within the deferral period for this type of remuneration at the plaintiff's former employer and subject to the performance metrics or parameters of the plan in force at the Bank, which was that of 2018. As explained in note 5 of the report of the consolidated annual accounts of the year 2022, the degree of performance of these objectives was 33.3 %.
The Bank filed an appeal against the judgment before the Madrid Court of Appeal, which was opposed by the plaintiff. At the same time, the plaintiff filed an application for provisional enforcement of the judgment in the First Instance Court. A court order was issued ordering enforcement of the judgment, and the Bank deposited in the court bank account the full amount provisionally awarded to the claimant, including interest, for an approximate sum of EUR. 35.5 million, within the voluntary compliance period.
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On 6 February 2023, Banco Santander was notified with the judgment of 20 January 2023 by which the Madrid Court of Appeal partially upheld the appeal filed by the Bank. The judgment has reduced the amount to be paid by EUR 8 million, which, to the extent that this amount was already paid in the provisional partial enforcement of the judgement of first instance court, must be returned to the Bank together with other amounts for interest, which the appeal judgement also rejects. The plaintiff deposited circa EUR 9.6 million. This amount was received by the Bank on 11 July 2023. On 11 April 2023, the Bank filed an extraordinary appeal for procedural infringement and an appeal in cassation against the Madrid Court of Appeal’s judgment before Spanish Supreme Court. The extraordinary and cassation appeals submitted by the Bank were accepted on 26 March 2025 and are pending to be resolved. Existing provisions cover the estimated risk of loss.
•CHF Polish Mortgage Loans: on 3 October 2019, the CJEU rendered its decision in relation to a judicial proceeding against an unrelated bank in Poland regarding the consequences of potentially unfair contractual clauses in CHF-Indexed loan agreements. The CJEU left it up to national courts to decide in this regard, indicating that it is possible to invalidate a contract if it cannot be maintained without the abusive terms and there are no explicit supplementary provisions that can replace these terms.
On 15 June 2023, the CJEU issued its judgment in Case C-520/21, in which it confirmed that it is national law that is relevant to determine the effect of cancellation of a contract - respecting the principles arising from Directive 93/13/EEC. According to the ruling of the CJEU in that case, the bank's claims in excess of the repayment of the nominal amount of the loan's principal and, as the case may be, the payment of default interest are contrary to the objectives of Directive 93/13/EEC if they were to lead to a profit analogous to the one it intended to make from the performance of the contract and thus eliminate the deterrent effect.
On 25 April 2024, the Civil Chamber of the Supreme Court rendered a decision according to which: (i) in the event that a provision of an indexed or denominated loan agreement relating to the manner of determining the exchange rate of a foreign currency constitutes an abusive contractual term and is not binding, based on the current case law, it is not possible for this provision to be replaced by any other method of determining exchange rates under the law or prevailing practices; (ii) in the event that it is not possible to determine a foreign currency exchange rate binding for the parties in an indexed or denominated credit agreement, the agreement is not binding. Further, referring to the issues related to the cancellation of a credit agreement, the Supreme Court pointed out that: (i) if the bank has paid all or part of the credit amount to the borrower and the borrower has made repayments of the credit, independent claims for the repayment of the undue payment arise in favour of each party (the so-called two condition theory); (ii) the limitation period of the bank's claim for reimbursement of amounts paid under the credit begins from the day following the day on which the borrower challenged the bindingness of the terms of the agreement; (iii) there is no legal basis for either party to claim interest or other benefits for the use of its funds during the period between the undue payment and the date when the repayment became due. The criteria set out by the Supreme Court in its decision could clarify the previous decisions described above. Nine judges of the Supreme Court declined to participate in the resolution raising questions of a constitutional nature and six judges submitted dissenting opinions mainly on issues related to the maintenance of the agreement after the elimination of abusive clauses.
Santander Bank Polska and Santander Consumer Bank Poland estimate legal risk using a model which considers different possible outcomes and regularly monitor court rulings on foreign currency loans to verify changes in case law practice, including the impact of the aforementioned Supreme Court resolution on this case law. The Bank is reaching settlements with customers who have taken legal action as well as with those who have not yet decided to file a lawsuit. The settlement scenario is reflected in the model used to calculate provisions for legal risks.
As of 30 June 2025, Santander Bank Polska S.A. and Santander Consumer Bank S.A. maintained a portfolio of loans affected by the legal risk connected with CHF mortgage for an approximate gross amount of PLN 4,435.6 million (EUR 1,045.6 million). As of 1 January 2022, in accordance with IFRS 9 and based on the new best available information, the accounting methodology was adapted so that the gross carrying amount of mortgage loans denominated and indexed in foreign currencies is reduced by the amount in which the estimated cash flows are not expected to cover the gross amount of loans, including as a result of legal controversies relating to these loans. In the absence of exposure or insufficient gross exposure, a provision according to IAS 37 is recorded.
As of 30 June 2025, the total value of adjustment to gross carrying amount in accordance with IFRS9 as well as provisions recorded under IAS37, amount to PLN 6,508.7 million (EUR 1,534.4 million) of which PLN 4,110.6 million (EUR 969.1 million) corresponds to adjustment to gross carrying amount under IFRS 9 and PLN 2,398.1 million (EUR 565.3 million) to provisions recognized in accordance with IAS 37. The adjustment to gross carrying amount in accordance with IFRS9 during the first semester of 2025 amounted to PLN 58.1 million (EUR 13.5 million), the additional provisions under IAS 37 amounted to PLN 671.9 million (EUR 158.8 million). Other costs related to the dispute amounted to PLN 318.1 million (EUR 75.2 million).
The above figures include Santander Bank Polska and Santander Consumer.
These provisions represent the best estimate as of 30 June 2025. Santander Bank Polska and Santander Consumer Bank Poland will continue to monitor and assess the appropriateness of those provisions.
•Banco Santander Mexico: dispute regarding a testamentary trust constituted in 1994 by Mr. Roberto Garza Sada in Banca Serfin (currently Santander Mexico) in favor of his four sons in which he affected shares of Alfa, S.A.B. de C.V. (respectively, Alfa and the Trust). During 1999, Mr. Roberto Garza Sada instructed Santander México in its capacity as trustee to transfer 36,700,000 shares from the Trust's assets to his sons and daughters and himself. These instructions were ratified in 2004 by Mr. Roberto Garza Sada before a Notary Public.
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Mr. Roberto Garza Sada passed away on 14 August 2010 and subsequently, in 2012, his daughters filed a complaint against Santander Mexico alleging it had been negligent in its trustee role. The lawsuit was dismissed at first instance in April 2017 and on appeal in 2018. In May 2018, the plaintiffs filed an appeal (recurso de amparo) before the First Collegiate Court of the Fourth Circuit based in Nuevo León, which ruled in favor of the plaintiffs on 7 May 2021, annulling the 2018 appeal judgment and condemning Santander Mexico to the petitions claimed, consisting of the recovery of the amount of 36,700,000 Alfa shares, together with dividends, interest and damages.
Santander Mexico has filed various constitutional reviews and appeals against the recurso de amparo referred to above, which have been dismissed by the Supreme Court of Justice of the Nation. As of this date, an amparo review filed by the Bank is pending to be resolved in the Collegiate Courts in the State of Nuevo León, thus the judgment is not final.
The Bank asked the Supreme Court of Justice of the Nation to take up the matter. what was accepted and consequently, the Supreme Court of Justice will resolve the matter. In addition, the Bank presented a recurso de reclamación against the non-admission of the recurso de revisión extraordinario issued by the then president of the Supreme Court of Justice of the Nation. On 25 June 2025, such recurso de reclamación was accepted and, consequently, the resolution of the recurso de revisión extraordinario against the judgment which condemned the Bank is now pending.
Santander México believes that the actions taken should prevail and reverse the decision against it. The impact of a potential unfavorable resolution for Santander México will be determined in a subsequent proceeding and will also depend on the additional actions that Santander México may take in its defense, so it is not possible to determine it at this time. At the current stage of the proceedings, the provisions recorded are considered to be sufficient to cover the risks deriving from this claim.
•Mortgage Expenses: In December 2015 the Spanish Supreme Court ruled that mortgage clauses relating to the payment of fees associated to formalizing the mortgage were abusive. On 27 November 2018, the Supreme Court agreed that the taxpayer of the documented legal acts stamp duty tax (IAJD) on the mortgage loans should be the borrower. On 9 November 2018, RDL 17/2018 came into force and modified the Law of the IAJD, establishing that the taxpayer is the Bank. On 23 January 2019, the Supreme Court ruled the distribution of the same must be 50 % between the Bank and the borrower in public notary expenses and agency expenses. The Supreme Court also ruled that the Bank must pay 100 % of the Registry. On 26 October 2020, the Supreme Court ruled that the Bank is fully responsible for the management expenses; and on 27 January 2021, the Supreme Court ruled that the Bank is also responsible for the valuation expenses.
In relation to the statute of limitations, on 25 April 2024, two judgments were rendered (cases C-561/21 and C-484/21) in which the Court of Justice of the European Union (CJEU) stated that the commencement of the statute of limitations for the annulment of the mortgage expenses shall be fixed on the moment when the consumer has an effective knowledge of the abusive nature of the clause and its effects and that this date must not be fixed (a) on the date of payment of such expense nor of the execution of the agreement; (b) when the Supreme Court has handed down judgments stating the abusive nature of a clause similar to the one included in the consumer contract; nor (c) when the CJEU has handed down judgments confirming that the statute of limitations for the annulment of contractual provisions is valid subject to its compliance with the principles of equivalence and effectiveness.
The Supreme Court has confirmed this criterion in its 14 June 2024 judgment, establishing that the public dissemination of case-law declaring the abusive nature of a clause does not necessarily give rise to the limitation period of the reimbursement action derived from similar clauses. However, the 4 July 2024 judgment, rendered in the case C-450/22, the CJEU has established that it cannot be excluded a priori that, as a consequence of the occurrence of an objective event or of a notorious event, such as the amendment of the applicable legislation or a widely disseminated and debated development of jurisprudence, the court considers that the average consumer's overall perception of the floor clause has changed during the reference period and has enabled him to become aware of the potentially significant economic consequences arising from such clause. A further preliminary question concerning the statute of limitations of the annulment of mortgage expenses has been raised before the CJEU by the First Instance Court No 8 of La Coruña. In December in 2024, the Supreme Court handed down two additional judgments regarding statute of limitations, in which it determines that the date to be considered for the purposes of the application of Directive 93/1994 and, consequently, the statute of limitations detailed in its previous judgments, is 31 December 1994 (i.e. the date when the deadline for its transposition ended). This is based on the principle of interpretation in accordance with directives not transposed (applicable once their transposition period has expired). The recorded provision includes the best estimate of Group’s liability for this matter.
Banco Santander, S.A. and the other Group companies are subject to claims and, therefore, are party to certain legal proceedings incidental to the normal course of their business including those in connection with lending activities, relationships with employees and other commercial or tax matters additional to those referred to here.
With the information available to it, the Group considers that, at 30 June 2025, it had reliably estimated the obligations associated with each proceeding and had recognized, where necessary, sufficient provisions to cover reasonably any liabilities that may arise as a result of these tax and legal risks. Those cases in which provisions have been registered but are not disclosed are justified on the basis that it would be prejudicial to the proper defense of the Group. Subject to the qualifications made, the Group believes that any liability arising from such claims and proceedings will not have, overall, a material adverse effect on the Group’s business, financial position, or results of operations.
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11. Equity
In the six-month periods ended 30 June 2025 and 2024 there were no quantitative or qualitative changes in Grupo Santander's equity other than those indicated in the condensed consolidated statements of changes in total equity.
a) Capital
Banco Santander's share capital at 30 June 2025 and 31 December 2024 consisted of EUR 7,443 and 7,576 million, represented by 14,885,325,372 and 15,152,492,322 shares, respectively, of EUR 0.50
On 3 June 2025, there was a capital reduction amounting to EUR 133,583,475 through the redemption of 267,166,950 shares, corresponding to the share buyback program carried out between February and June 2025.
The transaction did not involve the return of contributions to shareholders, as the Bank holds the redeemed shares.
b) Share premium
As a result of the capital reductions described in Note 11.a, during the first semester of 2025, the share premium has been reduced by EUR 1,453,416,348 corresponding to the difference between the purchase value of the shares amortised (EUR 1,586,999,823 ) and the nominal value of said shares (EUR 133,583,475 ) (see Total Statement of Changes in Shareholders' Equity). Likewise, and in accordance with applicable legislation, a reserve for amortized capital has been allocated with a charge to the share premium for an equal amount to the nominal value of said amortised shares (EUR 133,583,475 ).
c) Breakdown of other comprehensive income - Items not reclassified to profit or loss and Items that may be reclassified to profit or loss
| EUR million | ||||||||
| 30-06-2025 | 31-12-2024 | |||||||
| Other comprehensive income accumulated | ( | ( | ||||||
| Items not reclassified to profit or loss | ( | ( | ||||||
| Actuarial gains or losses on defined benefit pension plans | ( | ( | ||||||
| Non-current assets held for sale | ||||||||
| Share in other income and expenses recognised in investments, joint ventures and associates | ( | |||||||
| Other valuation adjustments | ||||||||
| Changes in the fair value of equity instruments measured at fair value with changes in other comprehensive income | ( | ( | ||||||
| Inefficacy of fair value hedges of equity instruments measured at fair value with changes in other comprehensive income | ||||||||
| Changes in the fair value of equity instruments measured at fair value with changes in other comprehensive income (hedged item) | ||||||||
| Changes in the fair value of equity instruments measured at fair value with changes in other comprehensive income (hedging instrument) | ( | ( | ||||||
| Changes in the fair value of financial liabilities measured at fair value through profit or loss attributable to changes in credit risk | ||||||||
| Items that may be reclassified to profit or loss | ( | ( | ||||||
| Hedge of net investments in foreign operations (effective portion) | ( | ( | ||||||
| Exchange differences | ( | ( | ||||||
| Hedging derivatives (effective portion) | ( | |||||||
| Changes in the fair value of debt instruments measured at fair value with changes in other comprehensive income | ( | ( | ||||||
| Hedging instruments (items not designated) | ||||||||
| Non-current assets held for sale | ( | |||||||
| Share in other income and expenses recognised in investments, joint ventures and associates | ( | ( | ||||||
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d) Other comprehensive income - Items not reclassified to profit or loss - Actuarial gains or losses on defined benefit pension plans
The balance of the heading Other accumulated comprehensive income - Items not reclassified to profit or loss - Actuarial gains or losses on defined benefit pension plans, includes the actuarial gains or losses and the return on the assets assigned to the plan, less administration costs and plan's own taxes, and any change in the effects of the asset limit, excluding amounts included in net interest on net defined benefit liability (asset). Its variation is shown in the consolidated condensed statement of recognized income and expense.
During the first six months of 2025, the amount of actuarial losses (net of actuarial gains) has decreased by EUR 21 million. The main impacts are:
In first place, due to the higher addition against equity amounting to EUR 79 million, with the following breakdown:
•Increase of EUR 90 million in the accumulates actuarial losses relating to the Group´s entities in Brazil, mainly due to the evolution experienced by the discount rate -reduction from 10.58 % to 10.52 % in pension plans and from 10.50 % to 10.42 % in medical plans-, to the short term inflation and the evolution in the asset portfolio.
•Decrease of EUR 27 million in the accumulates actuarial losses relating to the Group´s entities in Spain, mainly due to the evolution experienced by the discount rate -increase from 3.00 % to 3.60 %-.
•Decrease of EUR 21 million in the accumulates actuarial losses relating to the Group´s entities in Germany, mainly due to the evolution experienced by the discount rate -increase from 3.56 % to 3.94 %-.
•Increase of EUR 20 million in the cumulative actuarial losses relating to the Group's businesses in Portugal, mainly due to the behaviour of the asset portfolio.
•Increase of EUR 17 million in the cumulative actuarial losses relating to the Group's businesses in other geographical areas.
In second place, due to the evolution of exchange rates, a EUR 100 million decrease, mainly due to the depreciation of the pound sterling.
e) Other comprehensive income - Items not reclassified to profit or loss – Changes in the fair value of equity instruments measured at fair value with changes in other comprehensive income
Includes the net amount of unrealised fair value changes in equity instruments at fair value with changes in other comprehensive income.
Below is a breakdown of the composition of the balance as of 30 June 2025 and 31 December 2024 under 'Other comprehensive income - Items not reclassified to profit or loss - Changes in the fair value of equity instruments measured at fair value with changes in other comprehensive income' depending on the geographical origin of the issuer:
| EUR million | ||||||||||||||||||||||||||
| 30-06-2025 | 31-12-2024 | |||||||||||||||||||||||||
| Revaluation gains | Revaluation losses | Net revaluation gains/(losses) | Fair value | Revaluation gains | Revaluation losses | Net revaluation gains/(losses) | Fair value | |||||||||||||||||||
| Equity instruments | ||||||||||||||||||||||||||
| Domestic | ||||||||||||||||||||||||||
| Spain | ( | ( | ( | ( | ||||||||||||||||||||||
| International | ||||||||||||||||||||||||||
| Rest of Europe | ( | ( | ||||||||||||||||||||||||
| United States | ||||||||||||||||||||||||||
| Latin America and rest | ||||||||||||||||||||||||||
| ( | ( | ( | ( | |||||||||||||||||||||||
| Of which: | ||||||||||||||||||||||||||
| Listed | ( | ( | ||||||||||||||||||||||||
| Unlisted | ( | ( | ( | ( | ||||||||||||||||||||||
| January - June 2025 | | 131 | ||||||
f) Other comprehensive income - Items that may be reclassified to profit or loss – Hedges of net investments in foreign operations (effective portion) and exchange differences
Other comprehensive income - Items that may be reclassified to profit or loss - Hedges of net investments in foreign operations (effective portion) includes the net amount of the changes in value of hedging instruments in hedges of net investments in foreign operations, in respect of the portion of these changes considered to be effective hedges.
Other comprehensive income - Items that may be reclassified to profit or loss - Exchange differences includes the net amount of exchange differences arising on non-monetary items whose fair value is adjusted against equity and the differences arising on the translation to euros of the balances of the consolidated entities whose functional currency is not the euro.
The net variation of both headings recognised during the first six months of 2025 in the interim condensed consolidated statement of recognised income and expenses, reflects the impact of the evolution of the currencies during the year, reflecting mainly the general depreciation of the currencies, except the Brazilian real, Chilean peso and the Polish zloty (see Note 1.e).
Of this variation, a capital loss of EUR 104 million corresponds to the valuation at the closing exchange rate of goodwill for the first six months of 2025 (see Note 8).
g) Other comprehensive income – Items that may be reclassified to profit or loss – Changes in the fair value of debt instruments measured at fair value through other comprehensive income
Includes the net amount of unrealised fair value changes in debt instruments at fair value through other comprehensive income.
Below is a breakdown of the composition of the balance as of 30 June 2025 and 31 December 2024 under Other comprehensive income - Items that may be reclassified to profit or loss - Changes in the fair value of debt instruments measured at fair value through other comprehensive income depending on the type of instrument and the geographical origin of the issuer:
| EUR million | ||||||||||||||||||||||||||
| 30-06-2025 | 31-12-2024 | |||||||||||||||||||||||||
| Revaluation gains | Revaluation losses | Net revaluation gains/(losses) | Fair value | Revaluation gains | Revaluation losses | Net revaluation gains/(losses) | Fair value | |||||||||||||||||||
| Debt instruments | ||||||||||||||||||||||||||
| Issued by public Public-sector | ||||||||||||||||||||||||||
| Spain | ||||||||||||||||||||||||||
| Rest of Europe | ( | ( | ||||||||||||||||||||||||
| Latin America and rest of the world | ( | ( | ( | ( | ||||||||||||||||||||||
| Issued by Private-sector | ||||||||||||||||||||||||||
| Spain | ( | ( | ( | |||||||||||||||||||||||
| Rest of Europe | ( | ( | ||||||||||||||||||||||||
| Latin America and rest of the world | ( | ( | ( | ( | ||||||||||||||||||||||
| ( | ( | ( | ( | |||||||||||||||||||||||
132 | | January - June 2025 | ||||||
12. Segment information (Primary segment)
Grupo Santander has aligned the information in this note with the underlying information used internally for management reporting and with that presented in Grupo Santander's other public documents.
Grupo Santander's executive committee has been selected to be its chief operating decision maker. Grupo Santander's operating segments reflect its organizational and managerial structures. The executive committee reviews internal reporting based on these segments to assess performance and allocate resources.
The segments are split by business units in which benefits are obtained or by geography. The information is prepared by aggregating the figures for Grupo Santander’s various geographic areas and business units, relating it to both the accounting data of the units integrated in each segment and that provided by management information systems. The same general principles as those used in Grupo Santander are applied.
During the first quarter of 2025, Grupo Santander made changes to the composition of its primary segments, as well as to the criteria for allocating profit among them, as follows:
•To better align reporting with the changes to the management structure in Wealth Management & Insurance, investment platforms (Investment Platforms Unit) and certain stakes in companies, mainly in the real estate sector, that were previously recorded in Retail and Commercial Banking or Corporate and Investment Banking have been incorporated into Wealth Management & Insurance.
•Profit sharing criteria between Retail & Commercial Banking and Cards has been improved, aligning criteria across the Group.
•Additionally, it has been completed the usual annual adjustment of the perimeter of the Global Customer Relationship Model between Retail & Commercial Banking and Corporate & Investment Banking and between Retail & Commercial Banking and Wealth Management & Insurance.
The Group's main level of segmentation, derived from its management model, consolidates the Group's businesses under five business areas:
•Retail & Commercial Banking (Retail): area that integrates the retail banking and commercial banking business (individuals, SMEs and corporates), except private banking clients and business originated in the consumer finance and the cards businesses. Detailed financial information is provided on Spain (Retail Spain), the UK (Retail UK), Mexico (Retail Mexico) and Brazil (Retail Brazil), which represent the majority of the total Retail business.
•Digital Consumer Bank (Consumer): comprises all business originated in the consumer finance companies, plus Openbank, Open Digital Services (ODS) and SBNA Consumer. Detailed financial information is provided on Europe (DCB Europe) and US (DCB US).
•Corporate & Investment Banking (CIB): this business, which includes Global Transactional Banking, Global Banking (Global Debt Finance and Corporate Finance) and Global Markets, offers products and services on a global scale to corporate and institutional customers, and collaborates with other global businesses to better serve our broad customer base.
•Wealth Management & Insurance (Wealth): includes the corporate unit of Private Banking and International Private Banking in Miami and Switzerland (Santander Private Banking), the asset management business (Santander Asset Management), the insurance business (Santander Insurance) and the unit that manages the investment platforms and stakes that complement Wealth's traditional business (the new vertical, Portfolio Investments).
•Payments: comprises the Group's digital payments solutions, providing global technology solutions for the banks and new customers in the open market. It is structured in two businesses: PagoNxt (Getnet, Ebury and PagoNxt Payments) and Cards (cards platform and business in the countries where Group operates).
In accordance with the information used by the Group's executive committee for decision making, following is a distribution of the gross margin by business segment accompanying consolidated income statements for the six-month periods ended 30 June 2025 and 2024.
In addition to these operating units, which report by businesses and geographic area, Grupo Santander continues to maintain the area of Corporate Centre, that includes the centralized activities relating to equity stakes in financial companies, financial management of the structural exchange rate position, assumed within the sphere of Grupo Santander's assets and liabilities committee, as well as management of liquidity and of shareholders' equity via issuances.
This financial information ('underlying basis') is computed by adjusting reported results for the effects of certain gains and losses (e.g.: capital gains, write-downs, etc.). These gains and losses are items that management and investors ordinarily identify and consider separately to understand better the underlying trends in the business.
| January - June 2025 | | 133 | ||||||
Following is the reconciliation between the adjusted profit and the statutory profit corresponding to the six-month periods ended 30 June 2025 and 2024:
| EUR million | ||||||||||||||||||||
| Total Income | Profit before tax | Profit | ||||||||||||||||||
| Segment | 30-06-2025 | 30-06-2024 | 30-06-2025 | 30-06-2024 | 30-06-2025 | 30-06-2024 | ||||||||||||||
| Retail & Commercial Banking | ||||||||||||||||||||
| Digital Consumer Bank | ||||||||||||||||||||
| Corporate & Investment Banking | ||||||||||||||||||||
| Wealth Management & Insurance | ||||||||||||||||||||
| Payments | ||||||||||||||||||||
| Corporate Centre | ( | ( | ( | ( | ( | ( | ||||||||||||||
| Underlying Profit | ||||||||||||||||||||
| Adjustments | ( | ( | ( | ( | ||||||||||||||||
| Statutory Profit | ||||||||||||||||||||
Explanation of the adjustments to the statutory profit at 30 June 2025:
•In accordance with IFRS 5 requirements, in the statutory profit, results subject to the Poland disposal have been reported under the line 'Profit or loss after tax from discontinued operations' (see Note 2). However, in the underlying profit, in the underlying profit, the results from Poland have been reclassified so that they are reported line by line and disaggregated in each of the corresponding line items.
•A capital gain of EUR 231 million at 30 June 2025, from the sale of Santander's remaining 30.5 % stake in CACEIS (see note 2).
•Charges of EUR 467 million at 30 June 2025 (EUR 231 million net of taxes and minority interests) after updating the macroeconomic parameters in Brazil's credit provisioning models.
113. Related parties
The parties related to Grupo Santander are deemed to include, in addition to its subsidiaries, associates and joint ventures, Banco Santander’s key management personnel (the members of its board of directors and the executive vice presidents, together with their close family members) and the entities over which the key management personnel may exercise significant influence or control.
Following is a detail of the transactions performed by Grupo Santander with its related parties in the first six months of 2025 and 2024, distinguishing between significant shareholders, members of Banco Santander’s board of directors, Banco Santander’s executive vice presidents, Grupo Santander entities and other related parties. Related party transactions were made on terms equivalent to those that prevail in arm’s-length transactions or, when this was not the case, the related compensation in kind was recognised:
| EUR million | |||||||||||||||||
| 30-06-2025 | |||||||||||||||||
| Expenses and income | Significant shareholders | Directors and executives | Group companies or entities | Other related parties | Total | ||||||||||||
| Expenses | |||||||||||||||||
| Finance costs | |||||||||||||||||
| Leases | |||||||||||||||||
| Services received | |||||||||||||||||
| Purchases of stocks | |||||||||||||||||
| Other expenses | |||||||||||||||||
| Income | |||||||||||||||||
| Finance income | |||||||||||||||||
| Dividends received | |||||||||||||||||
| Services rendered | |||||||||||||||||
| Sale of stocks | |||||||||||||||||
| Other income | |||||||||||||||||
134 | | January - June 2025 | ||||||
| EUR million | |||||||||||||||||
| 30-06-2025 | |||||||||||||||||
| Other transactions | Significant shareholders | Directors and executives | Group companies or entities | Other related parties | Total | ||||||||||||
| Financing agreements: loans and capital contributions (lender) | |||||||||||||||||
| Financing agreements: loans and capital contributions (borrower) | ( | ( | ( | ||||||||||||||
| Guarantees provided | |||||||||||||||||
| Guarantees received | |||||||||||||||||
| Commitments acquired | ( | ||||||||||||||||
| Dividends and other distributed profit | |||||||||||||||||
| Other transactions | ( | ( | ( | ||||||||||||||
| EUR million | |||||||||||||||||
| 30-06-2025 | |||||||||||||||||
| Balance closing period | Significant shareholders | Directors and executives | Group companies or entities | Other related parties | Total | ||||||||||||
| Debt balances: | |||||||||||||||||
| Customers and commercial debtors | |||||||||||||||||
| Loans and credits granted | |||||||||||||||||
| Other collection rights | |||||||||||||||||
| Credit balances: | |||||||||||||||||
| Suppliers and creditors granted | |||||||||||||||||
| Loans and credits received | |||||||||||||||||
| Other payment obligations | |||||||||||||||||
| EUR million | |||||||||||||||||
| 30-06-2024 | |||||||||||||||||
| Expenses and income | Significant shareholders | Directors and executives | Group companies or entities | Other related parties | Total | ||||||||||||
| Expenses | |||||||||||||||||
| Finance costs | |||||||||||||||||
| Leases | |||||||||||||||||
| Services received | |||||||||||||||||
| Purchases of stocks | |||||||||||||||||
| Other expenses | |||||||||||||||||
| Income | |||||||||||||||||
| Finance income | |||||||||||||||||
| Dividends received | |||||||||||||||||
| Services rendered | |||||||||||||||||
| Sale of stocks | |||||||||||||||||
| Other income | |||||||||||||||||
| January - June 2025 | | 135 | ||||||
| EUR million | |||||||||||||||||
| 30-06-2024 | |||||||||||||||||
| Other transactions | Significant shareholders | Directors and executives | Group companies or entities | Other related parties | Total | ||||||||||||
| Financing agreements: loans and capital contributions (lender) | |||||||||||||||||
| Financing agreements: loans and capital contributions (borrower) | ( | ||||||||||||||||
| Guarantees provided | ( | ( | |||||||||||||||
| Guarantees received | |||||||||||||||||
| Commitments acquired | |||||||||||||||||
| Dividends and other distributed profit | |||||||||||||||||
| Other transactions | ( | ( | |||||||||||||||
| EUR million | |||||||||||||||||
| 31-12-2024 | |||||||||||||||||
| Balance closing period | Significant shareholders | Directors and executives | Group companies or entities | Other related parties | Total | ||||||||||||
| Debt balances: | |||||||||||||||||
| Customers and commercial debtors | |||||||||||||||||
| Loans and credits granted | |||||||||||||||||
| Other collection rights | |||||||||||||||||
| Credit balances: | |||||||||||||||||
| Suppliers and creditors granted | |||||||||||||||||
| Loans and credits received | |||||||||||||||||
| Other payment obligations | |||||||||||||||||
136 | | January - June 2025 | ||||||
14. Off -balance-sheet exposures
The off-balance-sheet exposures related to balances representing loans commitments, financial guarantees and other commitments granted (recoverables and non recoverables).
Financial guarantees granted include financial guarantees contracts such as financial bank guarantees, credit derivatives, and risks arising from derivatives granted to third parties; non-financial guarantees include other guarantees and irrevocable documentary credits.
Loan and other commitments granted include all off-balance-sheet exposures, which are not classified as guarantees provided, including loans commitment granted.
| EUR million | ||||||||
| 30-06-2025 | 31-12-2024 | |||||||
| Loan commitments granted | ||||||||
| Of which impaired | ||||||||
| Financial guarantees granted | ||||||||
| Of which impaired | ||||||||
| Bank sureties | ||||||||
| Credit derivatives sold | ||||||||
| Other commitments granted | ||||||||
| Of which impaired | ||||||||
| Other granted guarantees | ||||||||
| Other | ||||||||
The breakdown of the off-balance sheet exposure and impairment on 30 June 2025 and 31 December 2024 by impairment stages is EUR 444,905 million and EUR 435,147 million of exposure and EUR 287 million and EUR 305 million of impairment in stage 1, EUR 18,199 million and EUR 17,587 million of exposure and EUR 170 million and EUR 192 million of impairment in stage 2, and EUR 1,514 million and EUR 1,521 million of exposure and EUR 196 million and EUR 213 million of impairment in stage 3, respectively.
15. Average headcount and number of branches
The average number of employees at Banco Santander and Grupo Santander, by gender, in the six-month periods ended 30 June 2025 and 2024 is as follows:
| Average headcount | ||||||||||||||
| Bank | Group (*) | |||||||||||||
| 30-06-2025 | 30-06-2024 | 30-06-2025 | 30-06-2024 | |||||||||||
| Men | ||||||||||||||
| Women | ||||||||||||||
(*) Of the total average number of employees at 30 June 2025, 3,592 men and 7,051 women belong to the Grupo's business held for sale in Poland.
The number of branches, depending on their location, as of 30 June 2025 and 31 December 2024 is as follow:
| Number of branches | ||||||||
| Group | ||||||||
| 30-06-2025 | 31-12-2024 | |||||||
Spain (*) | ||||||||
Group (**) | ||||||||
(*) Includes branches in Spain of the Digital Consumer Bank business.
(**) At 30 June 2025, 361 branches corresponding to the Group's business held for sale in Poland (368 branches at 31 December 2024) are included.
At 30 June 2025 and 31 December 2024, CartaSur sales points and banking service points in Argentina are included, while operating points that do not provide customer service in Colombia are excluded.
| January - June 2025 | | 137 | ||||||
16. Other disclosures
a) Valuation techniques for financial assets and liabilities
The following table shows a summary of the fair values, at 30 June 2025 and 31 December 2024, of the financial assets and liabilities indicated below, classified on the basis of the various measurement methods used by Grupo Santander to determine their fair value:
| EUR million | ||||||||||||||||||||
| 30-06-2025 | 31-12-2024 | |||||||||||||||||||
| Published price quotations in active markets (Level 1) | Internal models (Levels 2 and 3) | Total | Published price quotations in active markets (Level 1) | Internal models (Levels 2 and 3) | Total | |||||||||||||||
| Financial assets held for trading | ||||||||||||||||||||
| Non-trading financial assets mandatorily at fair value through profit or loss | ||||||||||||||||||||
| Financial assets at fair value through profit and loss | ||||||||||||||||||||
| Financial assets at fair value through other comprehensive income | ||||||||||||||||||||
| Hedging derivatives (assets) | — | — | ||||||||||||||||||
| Financial liabilities held for trading | ||||||||||||||||||||
| Financial liabilities designated at fair value through profit or loss | — | — | ||||||||||||||||||
| Hedging derivatives (liabilities) | — | — | ||||||||||||||||||
| Liabilities under insurance contracts | — | — | ||||||||||||||||||
The financial instruments at fair value determined on the basis of published price quotations in active markets (level 1) include government debt securities, private-sector debt securities, derivatives traded in organised markets, securitised assets, shares, short positions and fixed-income securities issued.
In cases where price quotations cannot be observed, management makes its best estimate of the price that the market would set, using its own internal models. In most cases, these internal models use data based on observable market parameters as significant inputs (level 2) and, in cases, they use significant inputs not observable in market data (level 3). In order to make these estimates, various techniques are employed, including the extrapolation of observable market data. The best evidence of the fair value of a financial instrument on initial recognition is the transaction price, unless the fair value of the instrument can be obtained from other market transactions performed with the same or similar instruments or can be measured by using a valuation technique in which the variables used include only observable market data, mainly interest rates.
During the first six months of 2025 and 2024, Grupo Santander did not make any material transfers of financial instruments between measurement levels other than the transfers included in level 3 table.
Grupo Santander has developed a formal process for the systematic valuation and management of financial instruments, which has been implemented worldwide across all the Group’s units. The governance scheme for this process distributes responsibilities between two independent divisions: Treasury (development, marketing and daily management of financial products and market data) and Risk (on a periodic basis, validation of pricing models and market data, computation of risk metrics, new transaction approval policies, management of market risk and implementation of fair value adjustment policies).
The approval of new products follows a sequence of steps (request, development, validation, integration in corporate systems and quality assurance) before the product is brought into production. This process ensures that pricing systems have been properly reviewed and are stable before they are used.
The most important products and types of derivatives, and the related valuation techniques and inputs, by asset class, are detailed in the consolidated annual accounts as at 31 December 2024.
As the end of 30 June 2025, the CVA (Credit Valuation Adjustment) accounted for was EUR 251 million (a decrease of 8.2 % compared to 31 December 2024) and adjustments of DVA (Debt Valuation Adjustment) was EUR 309 million (a decrease of 2.7 % compared to 31 December 2024). The reduction in CVA is due to the evolution in the models used to calculate spread curves for certain counterparties, movements in credit markets, market movements in interest rate and foreign exchange risk factors, while the reduction in DVA is due reductions in credit markets.
138 | | January - June 2025 | ||||||
Set forth below are the financial instruments at fair value whose measurement was based on internal models (levels 2 and 3) at 30 June 2025 and 31 December 2024:
| EUR million | EUR million | |||||||||||||||||||
| Fair values calculated using internal models at 30-06-2025 (*) | Fair values calculated using internal models at 31-12-2024 (*) | |||||||||||||||||||
| Level 2 | Level 3 | Level 2 | Level 3 | Valuation techniques | Main inputs | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| Financial assets held for trading | ||||||||||||||||||||
| Central banks (**) | Present value method | Yield curves, FX market prices | ||||||||||||||||||
| Credit institutions (**) | Present value method | Yield curves, FX market prices | ||||||||||||||||||
| Customers (**) | Present value method | Yield curves, FX market prices | ||||||||||||||||||
| Debt instruments and equity instruments | Present value method | Yield curves, FX market prices | ||||||||||||||||||
| Derivatives | ||||||||||||||||||||
| Swaps | Present value method, Gaussian Copula | Yield curves, FX market prices, HPI, Basis, Liquidity | ||||||||||||||||||
| Exchange rate options | Black-Scholes Model | Yield curves, Volatility surfaces, FX market prices, Liquidity | ||||||||||||||||||
| Interest rate options | Black's Model, multifactorial advanced models interest rate | Yield curves, Volatility surfaces, FX market prices, Liquidity | ||||||||||||||||||
| Interest rate futures | Present value method | Yield curves, FX market prices | ||||||||||||||||||
| Index and securities options | Black’s Model, multifactorial advanced models interest rate | Yield curves, Volatility surfaces, FX & EQ market prices, Dividends, Liquidity | ||||||||||||||||||
| Other | Present value method, Advanced stochastic volatility models and others | Yield curves, Volatility surfaces, FX and EQ market prices, Dividends, Liquidity, Dividends, Correlation, HPI, Credit, Others | ||||||||||||||||||
| Hedging derivatives | ||||||||||||||||||||
| Swaps | Present value method | Yield curves, FX market prices, Basis | ||||||||||||||||||
| Interest rate options | Black Model | Yield curves, FX market prices, Volatility surfaces | ||||||||||||||||||
| Other | Present value method, Advanced stochastic volatility models and others | Yield curves, Volatility surfaces, FX market prices, Credit, Liquidity, Others | ||||||||||||||||||
| Non-trading financial assets mandatorily at fair value through profit or loss | ||||||||||||||||||||
| Equity instruments | Present value method | Yield curves, Market price, Dividends and Others | ||||||||||||||||||
| Debt instruments | Present value method | Yield curves | ||||||||||||||||||
| Loans and receivables | Present value method, swap asset model and CDS | Yield curves and Credit curves | ||||||||||||||||||
| Financial assets designated at fair value through profit or loss | ||||||||||||||||||||
| Credit institutions | Present value method | Yield curves, FX market prices | ||||||||||||||||||
| Customers (***) | Present value method | Yield curves, FX market prices, HPI | ||||||||||||||||||
| Debt instruments | Present value method | Yield curves, FX market prices | ||||||||||||||||||
| Financial assets at fair value through other comprehensive income | ||||||||||||||||||||
| Equity instruments | Present value method | Yield curves, Market price, Dividends and Others | ||||||||||||||||||
| Debt instruments | Present value method | Yield curves, FX market prices | ||||||||||||||||||
| Loans and receivables | Present value method | Yield curves, FX market prices and Credit curves | ||||||||||||||||||
| January - June 2025 | | 139 | ||||||
| LIABILITIES | ||||||||||||||||||||
| Financial liabilities held for trading | ||||||||||||||||||||
| Central banks (**) | Present value method | FX market prices, Yield curves | ||||||||||||||||||
| Credit institutions (**) | Present value method | FX market prices, Yield curves | ||||||||||||||||||
| Customers (**) | Present value method | FX market prices, Yield curves | ||||||||||||||||||
| Derivatives | ||||||||||||||||||||
| Swaps | Present value method, Gaussian Copula | Yield curves, FX market prices, Basis, Liquidity, HPI | ||||||||||||||||||
| Exchange rate options | Black Model, multifactorial advanced models interest rate | Yield curves, Volatility surfaces, FX market prices, Liquidity | ||||||||||||||||||
| Interest rate options | Black-Scholes Model | Yield curves, Volatility surfaces, FX market prices | ||||||||||||||||||
| Index and securities options | Black-Scholes Model | Yield curves, FX market prices, Liquidity | ||||||||||||||||||
| Interest rate and equity futures | Present value method | Yield curves, Volatility surfaces, FX & EQ market prices, Dividends, Correlation, Liquidity, HPI | ||||||||||||||||||
| Other | Present value method, Advanced stochastic volatility models and others | Yield curves, Volatility surfaces, FX & EQ market prices, Dividends, Correlation, HPI, Credit, Others | ||||||||||||||||||
| Short positions | Present value method | Yield curves ,FX market prices, Equity | ||||||||||||||||||
| Hedging derivatives | ||||||||||||||||||||
| Swaps | Present value method | Yield curves ,FX market prices, Basis | ||||||||||||||||||
| Interest rate options | Black's Model | Yield curves, Volatility surfaces, FX market prices and Liquidity | ||||||||||||||||||
| Other | Present value method, Advanced stochastic volatility models and others | Yield curves, Volatility surfaces, FX market prices, Credit, Liquidity and others | ||||||||||||||||||
| Financial liabilities designated at fair value through profit or loss (****) | Present value method | Yield curves, FX market prices | ||||||||||||||||||
| Liabilities under insurance contracts | Present Value Method with actuarial techniques | Mortality tables and yield curves | ||||||||||||||||||
(*) The internal models of level 2 implement figures based on the parameters observed in the market, while level 3 internal models use significant inputs that are not observable in market data.
(**) Includes mainly temporary acquisitions/disposals of assets with corporate clients and, to a lesser extent, with central banks.
(***) Includes mainly syndicated loans under the HTC&S business model.
(****) Includes mainly short-term deposits that are managed based on their fair value.
140 | | January - June 2025 | ||||||
Level 3 financial instruments
Set forth below are the Group’s main financial instruments measured using unobservable market data as significant inputs of the internal models (level 3):
•HTC&S (Hold to collect and sale) syndicated loans classified in the fair value category with changes in other comprehensive income, where the cost of liquidity is not directly observable in the market, as well as the prepayment option in favour of the borrower.
•Illiquid equity instruments in non-trading portfolios, classified at fair value through profit or loss and at fair value through equity.
•Long-term temporary acquisitions/disposals of assets with corporate clients based on underlying assets for which no observable credit curve exists. To a lesser extent, repos/reverse repos with central banks on illiquid government-backed underlying assets.
•Callable interest rate derivatives (Bermudan-style options) where the main unobservable input is mean reversion of interest rates.
•Trading derivatives on interest rates, taking as an underlying asset titling and with the amortization rate (CPR, Conditional prepayment rate) as unobservable main entry.
•Derivatives from trading on inflation in Spain, where volatility is not observable in the market.
•Equity volatility derivatives, specifically indices and equities, where volatility is not observable in the long term.
•Derivatives on long-term interest rate and FX in some units (mainly South America) where for certain underlyings it is not possible to demonstrate observability to these terms.
•Debt instruments referenced to certain illiquid interest rates, for which there is no reasonable market observability.
The measurements obtained using the internal models might have been different if other methods or assumptions had been used with respect to interest rate risk, to credit risk, market risk and foreign currency risk spreads, or to their related correlations and volatilities. Nevertheless, the Bank’s directors consider that the fair value of the financial assets and liabilities recognised in the interim condensed consolidated balance sheet and the gains and losses arising from these financial instruments are reasonable.
The net amount recorded in the results of the first six months of 2025 arising from models whose significant inputs are unobservable market data (level 3) amounted to a loss of EUR 148 million (EUR 147 million of profit in the first six months of 2024).
| January - June 2025 | | 141 | ||||||
The table below shows the effect, at 30 June 2025 and 31 December 2024, on the fair value of the main financial instruments classified as Level 3 of a reasonable change in the assumptions used in the valuation. This effect was determined by applying the probable valuation ranges of the main unobservable inputs detailed in the following table:
| 30-06-2025 | ||||||||||||||||||||
| Portfolio/Instrument | Valuation technique | Main unobservable inputs | Range | Weighted average | Impacts (EUR million) | |||||||||||||||
| (Level 3) | Unfavourable scenario | Favourable scenario | ||||||||||||||||||
| Financial assets held for trading | ||||||||||||||||||||
| Loans and advances to customers and central banks | ||||||||||||||||||||
| Repos/Reverse repos | Market proxy | Price / Credit spread | n.a. | n.a. | ( | |||||||||||||||
| Debt securities | ||||||||||||||||||||
| Corporate debt | Discounted Cash Flows | Credit spread | ( | |||||||||||||||||
| Government debt | Discounted Cash Flows | Discount curve | ( | |||||||||||||||||
| Others | Discounted Cash Flows | Credit spread | ( | |||||||||||||||||
| Derivatives | ||||||||||||||||||||
| Cap&Floor | Black Scholes model | Volatility | ( | ( | ||||||||||||||||
| CCS | Discounted Cash Flows | Credit spread | ( | |||||||||||||||||
| EQ Options | EQ option pricing model | Volatility | ( | |||||||||||||||||
| EQ Options | Local volatility | Volatility | ( | |||||||||||||||||
| FX Forward | Forward estimation | Swap Rate | ( | |||||||||||||||||
| Fx Options | Fx option pricing model | Volatility | ( | |||||||||||||||||
| Inflation Derivatives | Asset Swap model | Inflation Swap Rate | ( | |||||||||||||||||
| IR Options | IR option pricing model | Volatility | ( | |||||||||||||||||
| IRS | Discounted Cash Flows | Credit spread | ( | |||||||||||||||||
| IRS | Discounted Cash Flows | Inflation Swap Rate | ( | |||||||||||||||||
| IRS | Others | Others | n.a. | ( | ||||||||||||||||
| Others | Forward estimation | Price | ( | |||||||||||||||||
| Property derivatives | Option pricing model | Growth rate | ( | ( | ||||||||||||||||
| Securitisation Swap | Discounted Cash Flows | Constant prepayment rates | ( | |||||||||||||||||
| Financial assets designated at fair value through profit or loss | ||||||||||||||||||||
| Loans and advances to customers | ||||||||||||||||||||
| Loans | Discounted Cash Flows | Credit spreads | ( | |||||||||||||||||
| Mortgage portfolio | Black Scholes model | Growth rate | ( | ( | ||||||||||||||||
142 | | January - June 2025 | ||||||
| 30-06-2025 | ||||||||||||||||||||
| Portfolio/Instrument | Valuation technique | Main unobservable inputs | Range | Weighted average | Impacts (EUR million) | |||||||||||||||
| (Level 3) | Unfavourable scenario | Favourable scenario | ||||||||||||||||||
| Debt securities | ||||||||||||||||||||
| Other debt securities | Others | Inflation Swap Rate | ( | |||||||||||||||||
| Non-trading financial assets mandatorily at fair value through profit or loss | ||||||||||||||||||||
| Debt securities | ||||||||||||||||||||
| Property securities | Probability weighting | Growth rate | ( | ( | ||||||||||||||||
| Equity instruments | ||||||||||||||||||||
| Equities | Price Based | Price | ( | |||||||||||||||||
| Financial assets at fair value through other comprehensive income | ||||||||||||||||||||
| Loans and advances to customers | ||||||||||||||||||||
| Loans | Discounted Cash Flows | Credit spread | n.a. - n.a. | n.a. | ( | |||||||||||||||
| Loans | Discounted Cash Flows | Interest rate curve | ( | |||||||||||||||||
| Loans | Forward estimation | Credit spread | ( | |||||||||||||||||
| Loans | Market price | Market price | ( | - | ( | |||||||||||||||
| Debt securities | ||||||||||||||||||||
| Mortgage Letters | Discounted Cash Flows | Mortgage Letters | ( | |||||||||||||||||
| Equity instruments | ||||||||||||||||||||
| Equities | Price Based | Price | ( | |||||||||||||||||
| Financial liabilities held for trading | ||||||||||||||||||||
| Derivatives | ||||||||||||||||||||
| Cap&Floor | Volatility option model | Volatility | ( | |||||||||||||||||
| FX Options | Volatility option model | Volatility | ( | |||||||||||||||||
| IRS | Discounted Cash Flows | Inflation Swap Rate | ( | |||||||||||||||||
| IRS | Discounted Cash Flows | Credit Spread | ( | |||||||||||||||||
| January - June 2025 | | 143 | ||||||
| 31-12-2024 | |||||||||||||||||||||||
| Portfolio/Instrument | Valuation technique | Main unobservable inputs | Range | Weighted average | Impacts (EUR million) | ||||||||||||||||||
| (Level 3) | Unfavourable scenario | Favourable scenario | |||||||||||||||||||||
| Financial assets held for trading | |||||||||||||||||||||||
| Loans and advances to customers | |||||||||||||||||||||||
| Repos/Reverse repos | Other | Long-term repo spread | n.a. | n.a. | ( | ||||||||||||||||||
| Debt securities | |||||||||||||||||||||||
| Corporate debt | Discounted Cash Flows | Credit spread | ( | ||||||||||||||||||||
| Government debt | Discounted Cash Flows | Discount curve | ( | ||||||||||||||||||||
| Others | Discounted Cash Flows | Credit spread | ( | ||||||||||||||||||||
| Derivatives | |||||||||||||||||||||||
| Cap&Floor | Forward estimation | Interest rate | ( | ||||||||||||||||||||
| CCS | Discounted Cash Flows | Credit spread | ( | ||||||||||||||||||||
| CDS | Price | Credit spread | ( | ||||||||||||||||||||
| EQ Options | EQ option pricing model | Volatility | ( | ||||||||||||||||||||
| EQ Options | Local volatility | Volatility | ( | ||||||||||||||||||||
| FX Forward | Forward estimation | Swap Rate | ( | ||||||||||||||||||||
| FX Options | FX option pricing model | Volatility | ( | ||||||||||||||||||||
| Inflation Derivatives | Asset Swap model | Inflation Swap Rate | ( | ||||||||||||||||||||
| IR Options | IR option pricing model | Volatility | ( | ||||||||||||||||||||
| IRS | Others | Others | n.a. | ( | |||||||||||||||||||
| IRS | Discounted Cash Flows | Credit spread | ( | ||||||||||||||||||||
| IRS | Discounted Cash Flows | Swap rate | ( | ||||||||||||||||||||
| Others | Forward estimation | Price | ( | ||||||||||||||||||||
| Property derivatives | Option pricing model | Growth rate | ( | ( | |||||||||||||||||||
| Securitisation Swap | Discounted Cash Flows | Constant prepayment rates | ( | ||||||||||||||||||||
| Financial assets designated at fair value through profit or loss | |||||||||||||||||||||||
| Loans and advances to customers | |||||||||||||||||||||||
| Loans | Discounted Cash Flows | Credit spreads | ( | ||||||||||||||||||||
| Mortgage portfolio | Black Scholes model | Growth rate | ( | ( | |||||||||||||||||||
144 | | January - June 2025 | ||||||
| 31-12-2024 | |||||||||||||||||||||||
| Portfolio/Instrument | Valuation technique | Main unobservable inputs | Range | Weighted average | Impacts (EUR million) | ||||||||||||||||||
| (Level 3) | Unfavourable scenario | Favourable scenario | |||||||||||||||||||||
| Debt securities | |||||||||||||||||||||||
| Other debt securities | Others | Inflation Swap Rate | ( | ||||||||||||||||||||
| Non-trading financial assets mandatorily at fair value through profit or loss | |||||||||||||||||||||||
| Debt securities | |||||||||||||||||||||||
| Property securities | Probability weighting | Growth rate | ( | ( | |||||||||||||||||||
| Equity instruments | |||||||||||||||||||||||
| Equities | Price Based | Price | ( | ||||||||||||||||||||
| Financial assets at fair value through other comprehensive income | |||||||||||||||||||||||
| Loans and advances to customers | |||||||||||||||||||||||
| Loans | Discounted Cash Flows | Credit spread | n.a. | n.a. | ( | ||||||||||||||||||
| Loans | Discounted Cash Flows | Interest rate curve | ( | ||||||||||||||||||||
| Loans | Discounted Cash Flows | Margin of a reference portfolio | ( | ( | |||||||||||||||||||
| Loans | Forward estimation | Credit spread | ( | ||||||||||||||||||||
| Loans | Market price | Market price | ( | ( | |||||||||||||||||||
| Debt securities | |||||||||||||||||||||||
| Corporate debt | Discounted Cash Flows | Margin of a reference portfolio | ( | ( | ( | ||||||||||||||||||
| Mortgage Letters | Discounted Cash Flows | Mortgage Letters | |||||||||||||||||||||
| Equity instruments | |||||||||||||||||||||||
| Equities | Price Based | Price | ( | ||||||||||||||||||||
| Financial liabilities held for trading | |||||||||||||||||||||||
| Derivatives | |||||||||||||||||||||||
| Cap&Floor | Volatility option model | Volatility | ( | ||||||||||||||||||||
| FX Options | Volatility option model | Volatility | ( | ||||||||||||||||||||
| IRS | Discounted Cash Flows | Inflation Swap Rate | ( | ||||||||||||||||||||
| IRS | Discounted Cash Flows | Credit spread | ( | ||||||||||||||||||||
1. For each instrument, the valuation technique is shown, the unobservable inputs described in the "Main unobservable inputs" column under probable scenarios, variation range, average value and impact resulting from valuing the position in the established maximum and minimum range.
2. The breakdown of impacts is shown by type of instrument and unobservable inputs.
3. The estimation of the range of variation of the unobservable inputs has been carried out taking into account plausible movements of said parameters depending on the type of instrument.
4. Zero impacts from fully hedged or back-to-back transactions have not been included in this exercise.
| January - June 2025 | | 145 | ||||||
Lastly, the changes in the financial instruments classified as level 3 in the first six months of 2025 and 2024 were as follows:
| 01-01-2025 | Changes | 30-06-2025 | ||||||||||||||||||||||||
| EUR million | Fair value calculated using internal models (Level 3) | Purchases/Settlements | Sales/Amortisation | Changes in fair value recognized in profit or loss | Changes in fair value recognised in equity | Level reclassifications | Other | Fair value calculated using internal models (Level 3) | ||||||||||||||||||
| Financial assets held for trading | ( | ( | ||||||||||||||||||||||||
| Central Banks | ||||||||||||||||||||||||||
| Credit institutions | ( | |||||||||||||||||||||||||
| Customers | ( | ( | ||||||||||||||||||||||||
| Debt instruments | ( | ( | ( | ( | ||||||||||||||||||||||
| Equity instruments | ||||||||||||||||||||||||||
| Trading derivatives | ( | |||||||||||||||||||||||||
| Swaps | ( | ( | ||||||||||||||||||||||||
| Exchange rate options | ( | ( | ||||||||||||||||||||||||
| Interest rate options | ( | ( | ||||||||||||||||||||||||
| Interest rate futures | ( | |||||||||||||||||||||||||
| Index and securities options | ( | ( | ( | |||||||||||||||||||||||
| Other | ( | ( | ||||||||||||||||||||||||
| Hedging derivatives (Assets) | ( | ( | ||||||||||||||||||||||||
| Swaps | ( | ( | ||||||||||||||||||||||||
| Financial assets designated at fair value through profit or loss | ( | ( | ||||||||||||||||||||||||
| Loans and advances to customers | ( | |||||||||||||||||||||||||
| Debt instruments | ( | ( | ||||||||||||||||||||||||
| Non-trading financial assets mandatorily at fair value through profit or loss | ( | |||||||||||||||||||||||||
| Loans and advances to customers | ( | ( | ||||||||||||||||||||||||
| Debt instruments | ( | ( | ||||||||||||||||||||||||
| Equity instruments | ( | |||||||||||||||||||||||||
| Financial assets at fair value through other comprehensive income | ( | ( | ( | |||||||||||||||||||||||
| Loans and advances to customers | ( | ( | ( | |||||||||||||||||||||||
| Debt instruments | ( | ( | ||||||||||||||||||||||||
| Equity instruments | ( | ( | ( | |||||||||||||||||||||||
| TOTAL ASSETS | ( | ( | ( | |||||||||||||||||||||||
| Financial liabilities held for trading | ( | ( | ( | |||||||||||||||||||||||
| Credit institutions | ||||||||||||||||||||||||||
| Customers | ||||||||||||||||||||||||||
| Trading derivatives | ( | ( | ( | |||||||||||||||||||||||
| Swaps | ( | ( | ||||||||||||||||||||||||
| Exchange rate options | ( | ( | ||||||||||||||||||||||||
| Interest rate options | ( | ( | ||||||||||||||||||||||||
| Index and securities options | ( | ( | ( | ( | ||||||||||||||||||||||
| Securities and interest rate futures | ( | |||||||||||||||||||||||||
| Others | ( | ( | ( | |||||||||||||||||||||||
| Hedging derivatives (Liabilities) | ( | |||||||||||||||||||||||||
| Swaps | ( | ( | ||||||||||||||||||||||||
| Interest rate options | ||||||||||||||||||||||||||
| Financial liabilities designated at fair value through profit or loss | ( | ( | ||||||||||||||||||||||||
| Liabilities under insurance contracts | ( | |||||||||||||||||||||||||
| TOTAL LIABILITIES | ( | ( | ( | |||||||||||||||||||||||
146 | | January - June 2025 | ||||||
| 01-01-2024 | Changes | 30-06-2024 | ||||||||||||||||||||||||
| EUR million | Fair value calculated using internal models (Level 3) | Purchases/Settlements | Sales/Amortisation | Changes in fair value recognized in profit or loss | Changes in fair value recognised in equity | Level reclassifications | Other | Fair value calculated using internal models (Level 3) | ||||||||||||||||||
| Financial assets held for trading | ( | ( | ( | |||||||||||||||||||||||
| Debt instruments | ( | ( | ( | ( | ||||||||||||||||||||||
| Equity instruments | ||||||||||||||||||||||||||
| Trading derivatives | ( | ( | ( | |||||||||||||||||||||||
| Swaps | ( | ( | ||||||||||||||||||||||||
| Exchange rate options | ( | ( | ( | |||||||||||||||||||||||
| Interest rate options | ( | ( | ||||||||||||||||||||||||
| Index and securities options | ( | ( | ( | |||||||||||||||||||||||
| Other | ( | ( | ( | ( | ||||||||||||||||||||||
| Financial assets designated at fair value through profit or loss | ( | ( | ||||||||||||||||||||||||
| Loans and advances to customers | ( | ( | ||||||||||||||||||||||||
| Debt instruments | ( | ( | ||||||||||||||||||||||||
| Non-trading financial assets mandatorily at fair value through profit or loss | ( | ( | ||||||||||||||||||||||||
| Loans and advances to customers | ( | ( | ( | |||||||||||||||||||||||
| Debt instruments | ( | ( | ||||||||||||||||||||||||
| Equity instruments | ( | |||||||||||||||||||||||||
| Financial assets at fair value through other comprehensive income | ( | ( | ( | |||||||||||||||||||||||
| Loans and advances to customers | ( | |||||||||||||||||||||||||
| Debt instruments | ( | ( | ( | |||||||||||||||||||||||
| Equity instruments | ( | ( | ||||||||||||||||||||||||
| TOTAL ASSETS | ( | ( | ( | ( | ||||||||||||||||||||||
| Financial liabilities held for trading | ( | ( | ( | ( | ||||||||||||||||||||||
| Trading derivatives | ( | ( | ( | ( | ||||||||||||||||||||||
| Swaps | ( | ( | ( | |||||||||||||||||||||||
| Interest rate options | ( | ( | ||||||||||||||||||||||||
| Index and securities options | ( | ( | ( | |||||||||||||||||||||||
| Exchange rate options | ( | ( | ( | ( | ||||||||||||||||||||||
| Others | ( | ( | ||||||||||||||||||||||||
| Hedging derivatives (Liabilities) | ( | |||||||||||||||||||||||||
| Swaps | ( | |||||||||||||||||||||||||
| Interest rate options | ||||||||||||||||||||||||||
| Financial liabilities designated at fair value through profit or loss | ( | |||||||||||||||||||||||||
| Liabilities under insurance contracts | ( | ( | ||||||||||||||||||||||||
| TOTAL LIABILITIES | ( | ( | ( | ( | ||||||||||||||||||||||
| January - June 2025 | | 147 | ||||||
The following terms are used with the meanings specified below:
•Refinancing transaction: transaction that is granted or used, for reasons relating to current or foreseeable financial difficulties of the borrower, to repay one or more of the transactions granted to it, or through which the payments on such transactions are brought fully or partially up to date, in order to enable the borrowers of the cancelled or refinanced transactions to repay their debt (principal and interest) because they are unable, or might foreseeably become unable, to comply with the conditions thereof in due time and form.
•Restructured transaction: transaction with respect to which, for economic or legal reasons relating to current or foreseeable financial difficulties of the borrower, the financial terms and conditions are modified in order to facilitate the payment of the debt (principal and interest) because the borrower is unable, or might foreseeably become unable, to comply with the aforementioned terms and conditions in due time and form, even if such modification is envisaged in the agreement.
For maximum guarantees amount, we will consider as follows:
•Collateral: the appraisal amount or valuation amount of the collateral received; for each transaction it cannot be higher than the covered amount of exposure.
148 | | January - June 2025 | ||||||
| 30-06-2025 | ||||||||||||||||||||||||||||||||||||||||||||
| Total | Of which: impaired | |||||||||||||||||||||||||||||||||||||||||||
| Without collateral | With collateral | Without collateral | With collateral | |||||||||||||||||||||||||||||||||||||||||
| Maximum amount of the actual collateral that can be considered | Maximum amount of the actual collateral that can be considered | |||||||||||||||||||||||||||||||||||||||||||
| Amounts in million euros, except number of transactions in units | Number of transactions | Gross amount | Number of operations | Gross amount | Mortgage collateral | Other collateral | Impairment of accumulated value or accumulated losses in fair value due to credit risk | Number of transactions | Gross amount | Number of operations | Gross amount | Mortgage collateral | Other collateral | Impairment of accumulated value or accumulated losses in fair value due to credit risk | ||||||||||||||||||||||||||||||
| Credit entities | ||||||||||||||||||||||||||||||||||||||||||||
| Public sector | ||||||||||||||||||||||||||||||||||||||||||||
| Other financial institutions and: individual shareholder | ||||||||||||||||||||||||||||||||||||||||||||
| Non financial institutions and individual shareholder | ||||||||||||||||||||||||||||||||||||||||||||
| Of which: Financing for constructions and property development | ||||||||||||||||||||||||||||||||||||||||||||
| Other warehouses | ||||||||||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||||||||||
| Financing classified as non-current assets and disposable groups of items that have been classified as held for sale | ||||||||||||||||||||||||||||||||||||||||||||
| January - June 2025 | | 149 | ||||||
| 31-12-2024 | ||||||||||||||||||||||||||||||||||||||||||||
| Total | Of which: impaired | |||||||||||||||||||||||||||||||||||||||||||
| Without collateral | With collateral | Without collateral | With collateral | |||||||||||||||||||||||||||||||||||||||||
| Maximum amount of the actual collateral that can be considered | Maximum amount of the actual collateral that can be considered | |||||||||||||||||||||||||||||||||||||||||||
| Amounts in million euros, except number of transactions in units | Number of transactions | Gross amount | Number of operations | Gross amount | Mortgage collateral | Other collateral | Impairment of accumulated value or accumulated losses in fair value due to credit risk | Number of transactions | Gross amount | Number of operations | Gross amount | Mortgage collateral | Other collateral | Impairment of accumulated value or accumulated losses in fair value due to credit risk | ||||||||||||||||||||||||||||||
| Credit entities | ||||||||||||||||||||||||||||||||||||||||||||
| Public sector | ||||||||||||||||||||||||||||||||||||||||||||
| Other financial institutions and: individual shareholder | ||||||||||||||||||||||||||||||||||||||||||||
| Non financial institutions and individual shareholder | ||||||||||||||||||||||||||||||||||||||||||||
| Of which: Financing for constructions and property development | ||||||||||||||||||||||||||||||||||||||||||||
| Other warehouses | ||||||||||||||||||||||||||||||||||||||||||||
| Total | ||||||||||||||||||||||||||||||||||||||||||||
| Financing classified as non-current assets and disposable groups of items that have been classified as held for sale | ||||||||||||||||||||||||||||||||||||||||||||
150 | | January - June 2025 | ||||||
c) Real estate business – Spain
i) Portfolio of home purchase loans to families
Home purchase loans granted to families in Spain on 30 June 2025 amounted to EUR 59,927 million (EUR 59,316 million at 31 December 2024). Of which mortgage collateral are 99.66 %:
| Million euros | ||||||||||||||
| 30-06-2025 | 31-12-2024 | |||||||||||||
| Gross Amount | Of which: impaired | Gross Amount | Of which: impaired | |||||||||||
| Home purchase loans to families | ||||||||||||||
-Without mortgage collateral | ||||||||||||||
- With mortgage collateral | ||||||||||||||
The risk profile of the home purchase mortgage loan portfolio in Spain remained at a medium-low level, with limited prospects of additional impairment:
•Principal is repaid on all mortgages from the start.
•Early repayment is common so the average life of the transaction is well below that of the contract.
•High quality of collateral concentrated almost exclusively in financing the first home.
•Average affordability rate at the end of June stood at 23 %.
•93 % of the portfolio has a LTV below 80 %, calculated as total risk/latest available house appraisal.
| 30-06-2025 | ||||||||||||||||||||
| Gross amount in books on the amount of the last appraisal (loan to value) | ||||||||||||||||||||
| Million euros | Less than or equal to 40% | More than 40% or less than 60% | More than 60% and less than 80% | More than 80% and less or equal to 100% | More than 100% | Total | ||||||||||||||
| Gross amount | ||||||||||||||||||||
| Of which: impaired | ||||||||||||||||||||
| 31-12-2024 | ||||||||||||||||||||
| Gross amount in books on the amount of the last appraisal (loan to value) | ||||||||||||||||||||
| Million euros | Less than or equal to 40% | More than 40% or less than 60% | More than 60% and less than 80% | More than 80% and less or equal to 100% | More than 100% | Total | ||||||||||||||
| Gross amount | ||||||||||||||||||||
| Of which: impaired | ||||||||||||||||||||
ii) Financing construction and property development
At 30 June 2025 and 31 December 2024 the financing amount related to construction and real estate business in Spain amounted to EUR 2,696 million and EUR 2,517 million net of allowances, respectively.
| 30-06-2025 | |||||||||||
| Million euros | Gross amount | Excess of gross exposure over maximum recoverable amount of effective collateral | Specific allowance | ||||||||
| Financing for construction and property development recognised by the Group's credit institutions (including land) (business in Spain) | |||||||||||
| Of which: watchlist/ impaired | |||||||||||
| Memorandum items: Written-off assets | |||||||||||
| January - June 2025 | | 151 | ||||||
| 31-12-2024 | |||||||||||
| Million euros | Gross amount | Excess of gross exposure over maximum recoverable amount of effective collateral | Specific allowance | ||||||||
| Financing for construction and property development recognised by the Group's credit institutions (including land) (business in Spain) | |||||||||||
| Of which: watchlist/ impaired | |||||||||||
| Memorandum items: Written-off assets | |||||||||||
| 30-06-2025 | 31-12-2024 | |||||||
| Million euros | Carrying amount | |||||||
| Memorandum items: | ||||||||
| Total loans and advances to customers excluding the public sector (business in Spain) (book value) | ||||||||
| Total consolidated assets (Total business) (book value) | ||||||||
| Impairment losses and provision for exposure classified as normal (business in Spain) | ||||||||
At the end 30 June 2025 and 31 December 2024 the concentration of this portfolio was as follows:
| Loans: gross amount | |||||||||||
| Million euros | 30-06-2025 | 31-12-2024 | |||||||||
1. Without mortgage collateral | |||||||||||
2. With mortgage collateral | |||||||||||
| 2.1 Completed buildings | |||||||||||
| 2.1.1 Residential | |||||||||||
| 2.1.2 Other | |||||||||||
| 2.2 Buildings and other constructions under construction | |||||||||||
| 2.2.1 Residential | |||||||||||
| 2.2.2 Other | |||||||||||
| 2.3 Land | |||||||||||
| 2.3.1 Developed consolidated land | |||||||||||
| 2.3.2 Other land | |||||||||||
| Total | |||||||||||
152 | | January - June 2025 | ||||||
d) Foreclosed real estate assets
The following table shows the breakdown at 30 June 2025 and 31 December 2024 of the foreclosed assets for the Spanish business:
| 30-06-2025 | ||||||||||||||
| Million euros | Gross carrying amount | Valuation Adjustments | Of which: Impairment losses since time of the foreclosure | Carrying amount | ||||||||||
| Property assets arising from financing provided to construction and property development companies | ||||||||||||||
| Of which: | ||||||||||||||
| Completed Buildings | ||||||||||||||
| Residential | ||||||||||||||
| Other | ||||||||||||||
| Buildings under construction | ||||||||||||||
| Residential | ||||||||||||||
| Other | ||||||||||||||
| Land | ||||||||||||||
| Developed Land | ||||||||||||||
| Other land | ||||||||||||||
| Property assets from home purchase mortgage loans to households | ||||||||||||||
| Other foreclosed property assets | ||||||||||||||
| Total property assets | ||||||||||||||
| 31-12-2024 | ||||||||||||||
| Million euros | Gross carrying amount | Valuation Adjustments | Of which: Impairment losses since time of the foreclosure | Carrying amount | ||||||||||
| Property assets arising from financing provided to construction and property development companies | ||||||||||||||
| Of which: | ||||||||||||||
| Completed Buildings | ||||||||||||||
| Residential | ||||||||||||||
| Other | ||||||||||||||
| Buildings under construction | ||||||||||||||
| Residential | ||||||||||||||
| Other | ||||||||||||||
| Land | ||||||||||||||
| Developed Land | ||||||||||||||
| Other land | ||||||||||||||
| Property assets from home purchase mortgage loans to households | ||||||||||||||
| Other foreclosed property assets | ||||||||||||||
| Total property assets | ||||||||||||||
Additionally, Grupo Santander has participation in entities holding real estate assets foreclosed or received in payment of debts for an amount of EUR 23 million and capital instruments foreclosed or received in payment of debts for an amount of EUR 9 million.
| January - June 2025 | | 153 | ||||||
e) Solvency information
The Group commands a solvency position above the levels required by regulators and by the European Central bank. At 30 June 2025, at a consolidated level, the Group must maintain a minimum capital ratio of 9.65 % of CET1 phase-in, applying the transitional CRR provision (4.50 % being the requirement for Pillar I, 0.98 % being the requirement for Pillar II, 2.50 % being the requirement for capital conservation buffer, 1.25 % being the requirement for systemically important institutions, 0.38 % being the requirement for anti-cyclical capital buffer and 0.04 % being the requirement for systemic risk requirement).
Grupo Santander must also maintain a minimum capital ratio of 11.47 % of Tier 1 phase-in and a minimum total ratio of 13.91 % phase-in.
At 30 June 2025, the Group has a capital ratio regulatory CET1 of 12.98 % and a total ratio of 17.22 %.
Capital ratio
| 30-06-2025 | 31-12-2024 | |||||||
Capital ratio | ||||||||
| Level 1 ordinary eligible capital (EUR million) | ||||||||
| Level 1 additional eligible capital (EUR million) | ||||||||
| Level 2 eligible capital (EUR million) | ||||||||
| Risk-weighted assets (EUR million) | ||||||||
| Level 1 ordinary capital coefficient (CET 1) | % | % | ||||||
| Level 1 additional capital coefficient (AT1) | % | % | ||||||
| Level 1 capital coefficient (TIER1) | % | % | ||||||
| Level 2 capital coefficient (TIER 2) | % | % | ||||||
Total capital ratio | % | % | ||||||
Leverage
| 30-06-2025 | 31-12-2024 | |||||||
| Leverage | ||||||||
| Tier 1 capital (EUR million) | ||||||||
| Exposure (EIR million) | ||||||||
| Leverage ratio | % | % | ||||||
154 | | January - June 2025 | ||||||
17. Additional disclosure requirements
This note includes relevant information about additional disclosure requirements.
17.1 Parent company financial statements
Following are the summarised unaudited condensed balance sheets of Banco Santander, S.A. as of 30 June 2025 and 31 December 2024. In the financial information of the Parent, investments in subsidiaries, jointly controlled entities and associates are recorded at cost. As of 30 June 2025 we have reclassified assets associated with the businesses held for sale in Poland from 'Investment in affiliated companies' to 'Non-current assets held for sale' under the 'Other assets' item. See note 2 above.
| UNAUDITED CONDENSED BALANCE SHEETS | 30 June 2025 | 31 December 2024 | |||||||||||||||
| (Parent company only) | (EUR million) | ||||||||||||||||
| Assets | |||||||||||||||||
| Cash and due from banks | |||||||||||||||||
| Of which: | |||||||||||||||||
| To bank subsidiaries | |||||||||||||||||
| Trading account assets | |||||||||||||||||
| Investment securities | |||||||||||||||||
| Of which: | |||||||||||||||||
| To bank subsidiaries | |||||||||||||||||
| To non-bank subsidiaries | |||||||||||||||||
| Net Loans and leases | |||||||||||||||||
| Of which: | |||||||||||||||||
| To non-bank subsidiaries | |||||||||||||||||
| Investment in affiliated companies | |||||||||||||||||
| Of which: | |||||||||||||||||
| To bank subsidiaries | |||||||||||||||||
| To non-bank subsidiaries | |||||||||||||||||
| Premises and equipment, net | |||||||||||||||||
| Other assets | |||||||||||||||||
| Total assets | |||||||||||||||||
| Liabilities | |||||||||||||||||
| Deposits | |||||||||||||||||
| Of which: | |||||||||||||||||
| To bank subsidiaries | |||||||||||||||||
| To non-bank subsidiaries | |||||||||||||||||
| Short-term debt | |||||||||||||||||
| Long-term debt | |||||||||||||||||
| Total debt | |||||||||||||||||
| Of which: | |||||||||||||||||
| To bank subsidiaries | |||||||||||||||||
| To non-bank subsidiaries | |||||||||||||||||
| Other liabilities | |||||||||||||||||
| Total liabilities | |||||||||||||||||
| Stockholders' equity | |||||||||||||||||
| Capital stock | |||||||||||||||||
| Retained earnings and other reserves | |||||||||||||||||
| Total stockholders' equity | |||||||||||||||||
| Total liabilities and Stockholders’ Equity | |||||||||||||||||
| January - June 2025 | | 155 | ||||||
Following are the summarised unaudited condensed statements of income of Banco Santander, S.A. for the periods ended 30 June 2025 and 2024. Results associated with the businesses held for sale in Poland have been reclassified to 'Income/(charges) after tax from discontinued operations' for both periods. See note 2 above.
| UNAUDITED CONDENSED STATEMENTS OF INCOME | Six months ended | Six months ended | |||||||||||||||||||||
| (Parent company only) | 30 June 2025 | 30 June 2024 | |||||||||||||||||||||
| (EUR million) | |||||||||||||||||||||||
| Interest income | |||||||||||||||||||||||
| Interest from earning assets | |||||||||||||||||||||||
| Dividends from affiliated companies | |||||||||||||||||||||||
| Of which: | |||||||||||||||||||||||
| From bank subsidiaries | |||||||||||||||||||||||
| From non-bank subsidiaries | |||||||||||||||||||||||
| Interest expense | ( | ( | |||||||||||||||||||||
| Interest income / (Charges) | |||||||||||||||||||||||
| Provision for credit losses | ( | ( | |||||||||||||||||||||
| Interest income / (Charges) after provision for credit losses | |||||||||||||||||||||||
| Non-interest income: | |||||||||||||||||||||||
| Non-interest expense: | ( | ( | |||||||||||||||||||||
| Income before income taxes | |||||||||||||||||||||||
| Tax expense or income from continuing operations | ( | ( | |||||||||||||||||||||
| Income/ (Charges) for the period from continuing operations | |||||||||||||||||||||||
| Income/ (Charges) after tax from discontinued operations | |||||||||||||||||||||||
| Net income | |||||||||||||||||||||||
156 | | January - June 2025 | ||||||
Following are the summarised unaudited condensed statements of comprehensive income of Banco Santander, S.A. for the periods ended 30 June 2025 and 2024.
| UNAUDITED CONDENSED STATEMENTS OF | Six months ended | Six months ended | |||||||||||||||||||||
| COMPREHENSIVE INCOME (Parent company only) | 30 June 2025 | 30 June 2024 | |||||||||||||||||||||
| (EUR million) | |||||||||||||||||||||||
| NET INCOME | |||||||||||||||||||||||
| OTHER COMPREHENSIVE INCOME | |||||||||||||||||||||||
| Items that may be reclassified subsequently to profit or loss | |||||||||||||||||||||||
| Hedging instruments (items not designated) | |||||||||||||||||||||||
| Revaluation gains (losses) | |||||||||||||||||||||||
| Amounts transferred to income statement | |||||||||||||||||||||||
| Other reclassifications | |||||||||||||||||||||||
| Debt instruments at fair value with changes in other comprehensive income | ( | ||||||||||||||||||||||
| Revaluation gains (losses) | ( | ||||||||||||||||||||||
| Amounts transferred to income statement | |||||||||||||||||||||||
| Other reclassifications | |||||||||||||||||||||||
| Cash flow hedges: | ( | ||||||||||||||||||||||
| Revaluation gains/(losses) | ( | ( | |||||||||||||||||||||
| Amounts transferred to income statement | ( | ||||||||||||||||||||||
| Amounts transferred to initial carrying amount of hedged items | |||||||||||||||||||||||
| Other reclassifications | |||||||||||||||||||||||
| Hedges of net investments in foreign operations: | |||||||||||||||||||||||
| Revaluation gains (losses) | |||||||||||||||||||||||
| Amounts transferred to income statement | |||||||||||||||||||||||
| Other reclassifications | |||||||||||||||||||||||
| Exchange differences | ( | ||||||||||||||||||||||
| Revaluation gains (losses) | ( | ||||||||||||||||||||||
| Amounts transferred to income statement | |||||||||||||||||||||||
| Other reclassifications | |||||||||||||||||||||||
| Non-current assets held for sale | |||||||||||||||||||||||
| Income tax | ( | ||||||||||||||||||||||
| Items that will not be reclassified to profit or loss: | ( | ||||||||||||||||||||||
| Actuarial gains/(losses) on pension plans | |||||||||||||||||||||||
| Other recognised income and expense of investments in subsidiaries, joint ventures and associates | |||||||||||||||||||||||
| Changes in the fair value of equity instruments measured at fair value through other comprehensive income | |||||||||||||||||||||||
| Gains or losses resulting from the accounting for hedges of equity instruments measured at fair value through other comprehensive income, net | |||||||||||||||||||||||
| Changes in the fair value of equity instruments measured at fair value through other comprehensive income (hedged item) | ( | ||||||||||||||||||||||
| Changes in the fair value of equity instruments measured at fair value through other comprehensive income (hedging instrument) | ( | ||||||||||||||||||||||
| Changes in the fair value of financial liabilities at fair value through profit or loss attributable to changes in credit risk | ( | ||||||||||||||||||||||
| Income tax relating to items that will not be reclassified | ( | ||||||||||||||||||||||
| TOTAL COMPREHENSIVE INCOME | |||||||||||||||||||||||
| January - June 2025 | | 157 | ||||||
Following are the summarised unaudited condensed cash flow statements of Banco Santander, S.A. for the periods ended 30 June 2025 and 2024.
| UNAUDITED CONDENSED CASH FLOW STATEMENTS | Six months ended | Six months ended | |||||||||||||||||||||
| (Parent company only) | 30 June 2025 | 30 June 2024 | |||||||||||||||||||||
| (EUR million) | |||||||||||||||||||||||
| 1. Cash flows from operating activities | |||||||||||||||||||||||
| Consolidated profit | |||||||||||||||||||||||
| Adjustments to profit | ( | ||||||||||||||||||||||
| Net increase/decrease in operating assets | ( | ( | |||||||||||||||||||||
| Net increase/decrease in operating liabilities | ( | ||||||||||||||||||||||
| Reimbursements/payments of income tax | |||||||||||||||||||||||
| Total net cash flows from operating activities (1) | ( | ( | |||||||||||||||||||||
| 2. Cash flows from investing activities | |||||||||||||||||||||||
| Investments (-) | ( | ( | |||||||||||||||||||||
| Divestments (+) | |||||||||||||||||||||||
| Total net cash flows from investment activities (2) | |||||||||||||||||||||||
| 3. Cash flows from financing activities | |||||||||||||||||||||||
| Issuance of own equity instruments | |||||||||||||||||||||||
| Disposal of own equity instruments | |||||||||||||||||||||||
| Acquisition of own equity instruments | ( | ( | |||||||||||||||||||||
| Issuance of debt securities | |||||||||||||||||||||||
| Redemption of debt securities | ( | ( | |||||||||||||||||||||
| Dividends paid | ( | ( | |||||||||||||||||||||
| Issuance/Redemption of equity instruments | |||||||||||||||||||||||
| Other collections/payments related to financing activities | ( | ( | |||||||||||||||||||||
| Total net cash flows from financing activities (3) | ( | ( | |||||||||||||||||||||
| 4. Effect of exchange rate changes on cash and cash equivalents (4) | ( | ||||||||||||||||||||||
| 5. Net increase/decrease in cash and cash equivalents (1+2+3+4) | ( | ( | |||||||||||||||||||||
| Cash and cash equivalents at beginning of period | |||||||||||||||||||||||
| Cash and cash equivalents at end of period | |||||||||||||||||||||||
17.2 Preference Shares and Preferred Securities
The following table shows the balance of the preference shares and preferred securities as of 30 June 2025 and 31 December 2024:
| 30 June 2025 | 31 December 2024 | |||||||||||||||||||
| (EUR million) | ||||||||||||||||||||
| Preference shares | ||||||||||||||||||||
| Preferred securities | ||||||||||||||||||||
| Total at period-end | ||||||||||||||||||||
Both preference shares and preferred securities are recorded under the “Financial liabilities at amortized cost – Subordinated Liabilities” caption in the consolidated balance sheet as of 30 June 2025 and 31 December 2024.
Preference shares include the financial instruments issued by the consolidated companies which, although equity for legal purposes, do not meet the requirements for classification as equity in the financial statements. These shares do not carry any voting rights and are non-cumulative.
Preference shares include non-cumulative preferred non-voting shares issued by Santander UK plc.
Preferred securities include non-cumulative preferred non-voting securities issued by Banco Santander, S.A.
For the purposes of payment priority, preferred securities are junior to all general creditors and to subordinated deposits. The payment of dividends on these securities, which have no voting rights, is conditional upon obtaining sufficient distributable profit and upon the limits imposed by Spanish banking regulations on equity.
158 | | January - June 2025 | ||||||
Preference shares and preferred securities are perpetual securities and there is no obligation that requires the Group to redeem them. All securities have been fully subscribed by third parties outside the Group.
Santander Finance Preferred, S.A. (Unipersonal), issuer of registered securities guaranteed by Banco Santander, S.A. until November 2017, merged on that date with Banco Santander, S.A.
For further information, see note 23.c. to our consolidated financial statements in Part 1 of our Annual Report on Form 20-F for the year ended 31 December 2024 filed with the SEC on 28 February 2025 and note 9.b. to our consolidated financial statements in Part 1 of this report.
| Outstanding at 30 June 2025 | |||||||||||||||||||||||||||||
| Amount in | |||||||||||||||||||||||||||||
| Preference Shares | currency | Interest rate | Redemption | ||||||||||||||||||||||||||
| Issuer/Date of issue | Currency | (million) | Option (A) | ||||||||||||||||||||||||||
| Santander UK plc, October 1995 | Pounds Sterling | % | No option | ||||||||||||||||||||||||||
| Santander UK plc, February 1996 | Pounds Sterling | % | No option | ||||||||||||||||||||||||||
| Outstanding at 30 June 2025 | |||||||||||||||||||||||||||||
| Amount in | |||||||||||||||||||||||||||||
| Preferred Securities | currency | Interest rate | Maturity date | ||||||||||||||||||||||||||
| Issuer/Date of issue | Currency | (million) | |||||||||||||||||||||||||||
| Banco Santander, S.A. | |||||||||||||||||||||||||||||
| Banco Santander, S.A., January 2020 | Euro | % | (B) | Perpetuity | |||||||||||||||||||||||||
| Banco Santander, S.A., May 2021 | US Dollar | % | (C) | Perpetuity | |||||||||||||||||||||||||
| Banco Santander, S.A., May 2021 | Euro | % | (D) | Perpetuity | |||||||||||||||||||||||||
| Banco Santander, S.A., September 2021 | Euro | % | (E) | Perpetuity | |||||||||||||||||||||||||
| Banco Santander, S.A., November 2023 | US Dollar | % | (F) | Perpetuity | |||||||||||||||||||||||||
| Banco Santander, S.A., November 2023 | US Dollar | % | (G) | Perpetuity | |||||||||||||||||||||||||
| Banco Santander, S.A., May 2024 | Euro | % | (H) | Perpetuity | |||||||||||||||||||||||||
| Banco Santander, S.A., August 2024 | US Dollar | % | (I) | Perpetuity | |||||||||||||||||||||||||
| Santander Finance Preferred, S.A. (Unipersonal), September 2004 | Euro | €CMS 10 + | Perpetuity | ||||||||||||||||||||||||||
A.From these dates the issuer can redeem the shares, subject to prior authorization by the national supervisor.
B.Payment is subject to certain conditions and to the discretion of Banco Santander. The 4.375 % interest rate is set for the first six years . After that, it will be reviewed every 5 years by applying a margin of 453.4 basis points on the 5-year Mid-Swap Rate.
C.Payment is subject to certain conditions and to the discretion of Banco Santander. The 4.750 % interest rate is set for the first six years , revised every 5 years thereafter by applying a margin of 375.3 basis points over the 5-year UST rate.
D.Payment is subject to certain conditions and to the discretion of Banco Santander. The 4.125 % interest rate is set for the first seven years , revised every 5 years thereafter by applying a margin of 431.1 basis points over the applicable 5-year Euro Mid-Swap Rate.
E.Payment is subject to certain conditions and to the discretion of Banco Santander. The 3.625 % interest rate is set for the first eight years , revised every 5 years thereafter by applying a margin of 376 basis points over the 5-year Mid-Swap Rate.
F.Payment is subject to certain conditions and to the discretion of Banco Santander. The 9.625 % interest rate is set for the first five years and six months, revised every 5 years thereafter by applying a margin of 530.6 basis points on the 5-year UST rate.
G.Payment is subject to certain conditions and to the discretion of Banco Santander. The 9.625 % interest rate is set for the first ten years , revised every 5 years thereafter by applying a margin of 529.8 basis points on the 5-year UST rate.
| January - June 2025 | | 159 | ||||||
H.Payment is subject to certain conditions and to the discretion of Banco Santander. The 7.00 % interest rate is set for the first six years , revised every 5 years thereafter by applying a margin of 443.2 basis points on the 5-year Mid-Swap rate.
I.Payment is subject to certain conditions and to the discretion of Banco Santander. The 8.00 % interest rate is set for the first ten years , revised every 5 years thereafter by applying a margin of 391.1 basis points on the 5-year Mid-Swap rate.
160 | | January - June 2025 | ||||||
| Part 2. Supplemental information | |||||
| January - June 2025 | | 161 | ||||||
INDEX TO THE SUPPLEMENTAL INFORMATION
| Page | |||||
| ITEM 1. PRESENTATION OF FINANCIAL AND OTHER INFORMATION | 163 | ||||
| ITEM 2. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS | 165 | ||||
| ITEM 3. SELECTED FINANCIAL DATA | 168 | ||||
| ITEM 4. RISK FACTORS | 173 | ||||
| ITEM 5. INFORMATION ON THE COMPANY | 177 | ||||
| Average balance sheets and interest rates | 177 | ||||
| Other statistical disclosure requirements | 185 | ||||
| ITEM 6. TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS | 187 | ||||
| ITEM 7. RISK DISCLOSURES | 188 | ||||
| ITEM 8. CORPORATE GOVERNANCE | 203 | ||||
| ITEM 9. OTHER DISCLOSURES | 204 | ||||
162 | | January - June 2025 | ||||||
ITEM 1. PRESENTATION OF FINANCIAL AND OTHER INFORMATION
Accounting principles
Under Regulation (EC) No. 1606/2002 of the European Parliament and of the Council of 19 July 2002, all companies governed by the law of an EU Member State (a 'Member State') and whose securities are admitted to trading on a regulated market of any Member State must prepare their consolidated financial statements in conformity with the International Financial Reporting Standards previously adopted by the European Union ('EU-IFRS'). The Bank of Spain Circular 4/2004 of 22 December 2004 on Public and Confidential Financial Reporting Rules and Formats ('Circular 4/2004') required Spanish credit institutions to adapt their accounting systems to the principles derived from the adoption by the European Union of International Financial Reporting Standards. This Circular was repealed on 1 January 2018 by Bank of Spain Circular 4/2017, of 27 November 2017 on Public and Confidential Financial Reporting Rules and Formats ('Circular 4/2017'). Therefore, Grupo Santander (the 'Group' or 'Santander') is required to prepare its consolidated financial statements for the six-month period ended 30 June 2025 in conformity with EU-IFRS and Bank of Spain’s Circular 4/2017. Differences between EU-IFRS, Bank of Spain’s Circulars and International Financial Reporting Standards as issued by the International Accounting Standards Board ('IFRS-IASB') are not material. Therefore, we assert that the financial information contained in this report on Form 6-K complies with IFRS-IASB.
We have presented our financial information according to the classification format for banks used in Spain. We have not reclassified the line items to comply with Article 9 of Regulation S-X, as permitted by the rules and regulations of the US Securities and Exchange Commission ('SEC'). Article 9 is a regulation of the SEC that contains presentation requirements for bank holding company financial statements.
General information
Our consolidated financial statements are in Euros, which are denoted 'euro', 'euros', 'EUR' or '€' throughout this report. Also, throughout this report, when we refer to:
•'we', 'us', 'our', the 'Group', 'Grupo Santander', ‘Banco Santander’ or 'Santander', we mean Banco Santander, S.A. and its subsidiaries, unless the context otherwise requires;
•'dollars', 'US$' or '$', we mean United States dollars; and
•'pounds', 'GBP sterling' or '£', we mean United Kingdom pounds.
When we refer to 'net interest income' we mean 'interest income/(charges)'.
When we refer to 'staff costs' we mean 'personnel expenses'.
When we refer to 'profit before tax' we mean 'operating profit/(loss) before tax'.
When we refer to 'average balances' for a particular period, we mean the average of the month-end balances for that period, unless otherwise noted. We do not believe that monthly averages present trends that are materially different from trends that daily averages would show. In calculating our interest income, we include any interest payments we received on non-accruing loans if they were received in the period when due.
When we refer to 'loans', we mean loans, leases, discounted bills and accounts receivable, unless otherwise noted. The loan to value 'LTV' ratios disclosed in this report refer to LTV ratios calculated as the ratio of the outstanding amount of the loan to the most recent available appraisal value of the mortgaged asset. Additionally, if a loan shows signs of impairment, we update the appraisals which are then used to estimate allowances for loan losses.
When we refer to the non-performing loans ratio ('NPL ratio'), we mean credit impaired loans and advances to customers, customer guarantees and customer commitments granted divided by total risk (total loans and advances to customers, customer guarantees and customer commitments granted, including those that are credit impaired).
When we refer to 'credit impaired balances', unless otherwise noted, we mean credit impaired loans and advances to customers, customer guarantees and customer commitments granted.
When we refer to 'allowances for credit losses', unless otherwise noted, we mean allowances for expected credit losses of financial assets.
When we refer to 'perimeter effect', we mean growth or reduction derived from changes in the companies that we consolidate resulting from acquisitions, dispositions or other reasons.
Where a translation of foreign exchange is given for any financial data, we use the exchange rates of the relevant period (as of the end of such period for balance sheet data and the average exchange rate of such period for income statement data) as published by the European Central Bank (ECB), unless otherwise noted.
Management makes use of certain financial measures in local currency to help in the assessment of ongoing operating performance. These non-GAAP financial measures include the results of operations of our subsidiary banks located outside the eurozone, excluding the impact of foreign exchange. We analyse these banks’ performance on a local currency basis to better measure the comparability of results between periods. Because changes in foreign currency exchange rates have a non-operating impact on the results of operations, we believe that
| January - June 2025 | | 163 | ||||||
evaluating their performance on a local currency basis provides an additional and meaningful assessment of performance to both management and the company’s investors. Variances in financial metrics, excluding the exchange rate impact, are calculated by translating the components of the financial metrics to our Euro presentation currency using the same foreign currency exchange rate for both periods presented. For a discussion of the accounting principles used in translation of foreign currency-denominated assets and liabilities to Euros, see note 2(a) to our consolidated financial statements included in Part 1 of our Annual Report on Form 20-F for the year ended 31 December 2024 filed with the SEC on 28 February 2025 (the '2024 Form 20-F'). See more information in 'Alternative Performance Measures' under Part 1 of this report.
164 | | January - June 2025 | ||||||
ITEM 2. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Banco Santander advises that this report on Form 6-K contains statements that constitute 'forward-looking statements' within the meaning of the US Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, information regarding:
•future business development;
•shareholders' remuneration policy;
•exposure to various types of market risks;
•management strategy;
•capital expenditures;
•earnings and other targets;
•asset portfolios; and
•non-financial information.
Forward-looking statements may be identified by words such as 'expect,' 'project,' 'anticipate,' 'should,' 'intend,' 'probability,' 'risk,' 'VaR,' 'RoRAC,' 'RoRWA,' 'TNAV,' 'target,' 'goal,' 'objective,' 'estimate,' 'future,' 'commitment,' 'commit,' 'focus,' 'pledge' and similar expressions which are found throughout this report on Form 6-K. We include forward-looking statements throughout this report on Form 6-K, including but not limited to, the 'Quantitative Analysis About Market Risk' section and the emissions and other climate-related performance data, statistics, metrics and/or targets. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those in the forward-looking statements.
Written and/or oral forward-looking statements may also be made in the periodic reports to the US Securities and Exchange Commission, shareholders' and investors' reports, offering circulars, prospectuses, press releases and other written materials, and in oral statements made by our directors, officers or employees to third parties, including financial analysts.
You should understand that the following important factors, in addition to those discussed under 'Item 4. Risk Factors', 'Item 5. Information on the Company', 'Part 1. Consolidated Directors’ Report—Group Financial Information', 'Part 1. Consolidated Directors’ Report—Financial Information by Segments', and elsewhere in this report on Form 6-K, could affect our future results and could cause those results or other outcomes to differ materially from those anticipated in any forward-looking statement:
| January - June 2025 | | 165 | ||||||
Economic and Industry Conditions
•general economic or industry conditions in Spain, the UK, other European countries, the US, Brazil, other Latin American countries and the other areas where we have significant operations or investments, including a worsening of the economic environment in these areas, and increase of the volatility in the capital markets;
•climate-related conditions, regulations, targets and weather events;
•uncertainty over the scope of actions that may be required by us, governments and others to achieve goals relating to climate, environmental and social matters, as well as the evolving nature of underlying science and industry and potential conflicts and inconsistencies among governmental standards and regulations;
•exposure to various market risks, principally including interest rate risk, foreign exchange rate risk, equity price risk, inflation, deflation and risks associated with new or modified benchmark indices;
•the effects of a decline in real estate prices, particularly in Spain and the UK;
•the effects of UK political developments, including the UK’s exit from the European Union;
•monetary and interest rate policies of the ECB and various central banks;
•the effects of market behaviour not captured by our statistical models, such as the VaR model we use;
•the inability to hedge some risks economically;
•changes in demographics, consumer spending, investment or saving habits;
•changes in energy prices;
•potential losses from early repayments on our loan and investment portfolio, declines in value of collateral securing our loan portfolio, and counterparty risk; and
•changes in competition and pricing environments, including as a result of the progressive adoption of the internet for conducting financial services and/or other factors.
Political, Geopolitical and Governmental Factors
•political instability in Spain, the UK, other European countries, the US, Brazil, other Latin American countries and the other areas where we have significant operations or investments;
•changes in monetary, fiscal and immigration policies and trade tensions, including the imposition of tariffs and retaliatory responses;
•effects of wars and conflicts (including the wars in Ukraine and the Middle East) or the outbreak of public health emergencies on the global economy;
•changes in Spanish, UK, EU, US, Latin American, or other jurisdictions’ legislation, regulations or taxes, including changes in regulatory capital and liquidity requirements; and
•increased regulation in response to financial crises.
Transaction and Commercial Factors
•damage to our reputation;
•acquisitions, divestitures or restructurings of businesses that may not perform in accordance with our expectations and our ability to integrate successfully our acquisitions and related challenges that result from the diversion of management’s focus and resources from other strategic opportunities and operational matters; and
•the outcome of our negotiations with business partners and governments.
Operating Factors
•the adequacy of loss reserves;
•potential losses associated with an increase in the level of impairment by counterparties to other types of financial instruments;
•the adequacy of provisions for tax, legal and other contingencies;
•technical difficulties and/or failure to adequately improve or upgrade our information technology;
•changes in our access to liquidity and funding on acceptable terms, including as a result of credit spread shifts or downgrades in our credit ratings or those of our more significant subsidiaries;
•our exposure to operational losses (e.g., failed internal or external processes, people and systems or liabilities derived from utilizing artificial intelligence);
•potential losses associated with cyberattacks, data breaches, data losses and other security incidents;
•limitations in our disclosure controls and procedures over financial and non-financial reporting;
•changes in our ability to recruit, retain and develop appropriate senior management and skilled personnel;
•the occurrence of force majeure, such as natural disasters, epidemics and pandemics, that impact our operations or impair the asset quality of our loan portfolio;
•the impact of changes in the composition of our balance sheet on future interest income / (charges); and
•our own decisions and actions including those affecting or changing our practices, operations, priorities, strategies, policies or procedures.
166 | | January - June 2025 | ||||||
The forward-looking statements contained in this report on Form 6-K speak only as of the date of this report. We do not undertake to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events.
| January - June 2025 | | 167 | ||||||
ITEM 3. SELECTED FINANCIAL DATA
We have selected the following financial information from our consolidated financial statements. You should read this information in connection with, and it is qualified in its entirety by reference to, our consolidated financial statements included in Part 1 of this report on Form 6-K.
From 1 January 2023 we apply retrospectively IFRS 17 'Insurance Contracts and amendments to IFRS 17' which did not have material equity impacts except for a balance sheet reclassification for an amount of approximately EUR 16 billion as of 31 December 2022 from a portfolio of products registered in 'Customer deposits' to 'Liabilities covered by insurance or reinsurance contracts'. See note 1.b to our consolidated financial statements in Part 1 of our 2024 Form 20-F.
In May 2025 we agreed to sell approximately 49% of the share capital of our subsidiary in Poland, Santander Bank Polska, S.A., to Erste Group Bank AG, as well as the 50% of Santander Towarzystwo Funduszy Inwestycyjnych S.A. (the asset management business in Poland) owned directly by Banco Santander, S.A. (see notes 2 and 6 to our interim consolidated financial statements in Part 1 of this report on Form 6-K) (the Poland disposal). Accordingly:
•In the statutory income statement, the results associated with the businesses subject to the Poland disposal are reported under a single line in the consolidated income statement — 'profit/(loss) after tax from discontinued operations' — for the six month-period ended 30 June 2025 and all prior periods contained herein. Consequently, the results associated with the businesses subject to the Poland disposal are excluded line by line from the breakdown of continuing operations. Due to such reclassification, the consolidated income statement data for the years ended 31 December 2024, 2023 and 2022 and for the six-month period ended 30 June 2024 differ from the consolidated income statement data for such periods included in our 2024 Form 20-F and in the interim Form 6-K for 30 June 2024 filed with the SEC. All other figures remain unchanged.
•In the consolidated balance sheet, the assets associated with the businesses subject to the Poland disposal are classified under the 'non-current assets held for sale' line item and the related liabilities under 'liabilities associated with non-current assets held for sale'. This classification applies solely to the balance sheet as of 30 June 2025 and does not affect prior periods.
Our unaudited interim condensed consolidated financial statements reflect all adjustments that we believe are necessary to state such information fairly for the six months ended 30 June 2025 and 2024. All those adjustments are of a normal recurring nature. Our results for the six months ended 30 June 2025 are not necessarily indicative of what our results will be for the full year or any other period.
168 | | January - June 2025 | ||||||
| Year ended 31 December, | |||||||||||||||||||||||||||||||||||
| BALANCE SHEET (EUR million) | 2024 | 2023 | 2022 | 30 June 2025 | 30 June 2024 | ||||||||||||||||||||||||||||||
| Total assets | 1,837,081 | 1,797,062 | 1,734,659 | 1,815,888 | 1,786,261 | ||||||||||||||||||||||||||||||
| Loans and advances to customers | 1,054,069 | 1,036,349 | 1,036,004 | 1,010,727 | 1,065,596 | ||||||||||||||||||||||||||||||
| Customer deposits | 1,055,936 | 1,047,169 | 1,009,722 | 1,008,229 | 1,037,646 | ||||||||||||||||||||||||||||||
| Total customer funds (A) | 1,348,422 | 1,306,942 | 1,239,981 | 1,307,359 | 1,309,903 | ||||||||||||||||||||||||||||||
| Total equity | 107,327 | 104,241 | 97,585 | 108,985 | 103,648 | ||||||||||||||||||||||||||||||
| CAPITALIZATION (EUR million) | |||||||||||||||||||||||||||||||||||
| Shareholders' equity | 135,196 | 130,443 | 124,732 | 138,066 | 132,836 | ||||||||||||||||||||||||||||||
| Other comprehensive income | (36,595) | (35,020) | (35,628) | (37,565) | (36,963) | ||||||||||||||||||||||||||||||
| Stockholders' equity (B) | 98,601 | 95,423 | 89,104 | 100,501 | 95,873 | ||||||||||||||||||||||||||||||
| Non-controlling interest (including net income of the period) | 8,726 | 8,818 | 8,481 | 8,484 | 7,775 | ||||||||||||||||||||||||||||||
| Total equity | 107,327 | 104,241 | 97,585 | 108,985 | 103,648 | ||||||||||||||||||||||||||||||
| Subordinated debt issued by Banco Santander, S.A., or issued by subsidiaries and guaranteed by Banco Santander, S.A., excluding preferred securities and preferred shares | 13,411 | 15,070 | 11,900 | 12,863 | 12,847 | ||||||||||||||||||||||||||||||
| Other Subordinated debt (C) | 12,370 | 6,559 | 5,930 | 9,212 | 11,100 | ||||||||||||||||||||||||||||||
| Preferred securities (D) | 9,821 | 9,081 | 7,898 | 9,089 | 8,281 | ||||||||||||||||||||||||||||||
| Preferred shares (D) | 211 | 202 | 198 | 205 | 207 | ||||||||||||||||||||||||||||||
| Total subordinated debt | 35,813 | 30,912 | 25,926 | 31,369 | 32,435 | ||||||||||||||||||||||||||||||
| Total capitalization | 143,140 | 135,153 | 123,511 | 140,354 | 136,081 | ||||||||||||||||||||||||||||||
| Stockholders’ equity per average share (B) (O) | 6.36 | 5.90 | 5.29 | 6.70 | 6.12 | ||||||||||||||||||||||||||||||
| Stockholders’ equity per share at period end (B) (O) | 6.51 | 6.01 | 5.38 | 6.75 | 6.19 | ||||||||||||||||||||||||||||||
| INCOME STATEMENT (EUR million) | |||||||||||||||||||||||||||||||||||
| Interest income / (charges) | 43,787 | 40,650 | 36,629 | 21,211 | 22,056 | ||||||||||||||||||||||||||||||
| Total income | 58,380 | 54,251 | 49,705 | 29,182 | 29,035 | ||||||||||||||||||||||||||||||
| Net operating income (E) | 33,231 | 29,618 | 26,442 | 16,818 | 16,552 | ||||||||||||||||||||||||||||||
| Operating profit/(loss) before tax | 17,347 | 15,005 | 14,437 | 9,104 | 8,724 | ||||||||||||||||||||||||||||||
| Profit from continuing operations | 12,503 | 11,125 | 10,204 | 6,737 | 6,017 | ||||||||||||||||||||||||||||||
| Profit from discontinued operations | 1,241 | 1,058 | 560 | 726 | 575 | ||||||||||||||||||||||||||||||
| Profit attributable to the Parent | 12,574 | 11,076 | 9,605 | 6,833 | 6,059 | ||||||||||||||||||||||||||||||
| PERFORMANCE (%) | |||||||||||||||||||||||||||||||||||
| ROE (F) (I) | 13.0 | % | 11.9 | % | 10.7 | % | 13.6 | % | 12.6 | % | |||||||||||||||||||||||||
| RoTE (G) (I) | 16.3 | % | 15.1 | % | 13.4 | % | 16.7 | % | 15.9 | % | |||||||||||||||||||||||||
| RoTE post AT1 (H) (I) | 15.5 | % | 14.4 | % | 12.6 | % | 16.0 | % | 15.1 | % | |||||||||||||||||||||||||
| ROA (I) | 0.76 | % | 0.69 | % | 0.63 | % | 0.81 | % | 0.74 | % | |||||||||||||||||||||||||
| SOLVENCY RATIOS (%) | |||||||||||||||||||||||||||||||||||
| Fully loaded CET1 (J) | 12.8 | % | 12.3 | % | 12.0 | % | 13.0 | % | 12.5 | % | |||||||||||||||||||||||||
| Phased-in CET1 (J) | 12.8 | % | 12.3 | % | 12.2 | % | 13.0 | % | 12.5 | % | |||||||||||||||||||||||||
| CREDIT QUALITY DATA (%) | |||||||||||||||||||||||||||||||||||
| Loans and advances to customers | |||||||||||||||||||||||||||||||||||
| Allowances for total balances as a percentage of total gross loans | 2.06 | % | 2.15 | % | 2.14 | % | 2.02 | % | 2.08 | % | |||||||||||||||||||||||||
| Credit impaired balances as a percentage of total gross loans (K) | 3.14 | % | 3.22 | % | 3.11 | % | 2.95 | % | 3.09 | % | |||||||||||||||||||||||||
| Allowances for total balances as a percentage of credit impaired balances (K) | 66 | % | 67 | % | 69 | % | 68 | % | 67 | % | |||||||||||||||||||||||||
| Net loan charge-offs as a percentage of total gross loans | 1.08 | % | 1.16 | % | 1.02 | % | 1.15 | % | 1.04 | % | |||||||||||||||||||||||||
| Ratios adding contingent liabilities to loans and advances to customers (L) | |||||||||||||||||||||||||||||||||||
| January - June 2025 | | 169 | ||||||
| Allowances for total balances as a percentage of total loans and contingent liabilities | 1.97 | % | 2.07 | % | 2.08 | % | 1.95 | % | 2.00 | % | |||||||||||||||||||||||||
| Credit impaired balances as a percentage of total loans and contingent liabilities (K) (M) | 3.05 | % | 3.14 | % | 3.08 | % | 2.91 | % | 3.02 | % | |||||||||||||||||||||||||
| Allowances for total balances as a percentage of credit impaired balances (K) (M) | 65 | % | 66 | % | 68 | % | 67 | % | 66 | % | |||||||||||||||||||||||||
| Net loan and contingent liabilities charge-offs as a percentage of total loans and contingent liabilities | 1.00 | % | 1.08 | % | 0.96 | % | 1.05 | % | 0.97 | % | |||||||||||||||||||||||||
| MARKET CAPITALIZATION AND SHARES | |||||||||||||||||||||||||||||||||||
| Number of shareholders | 3,485,134 | 3,662,377 | 3,915,388 | 3,508,261 | 3,526,649 | ||||||||||||||||||||||||||||||
| Shares (millions) | 15,152 | 16,184 | 16,794 | 14,885 | 15,494 | ||||||||||||||||||||||||||||||
| Share price (euros) | 4.465 | 3.780 | 2.803 | 7.027 | 4.331 | ||||||||||||||||||||||||||||||
| Market capitalization (EUR million) | 67,648 | 61,168 | 47,066 | 104,599 | 67,098 | ||||||||||||||||||||||||||||||
| Payout ratio (%) (N) | 25 | % | 25 | % | 20 | % | — | — | |||||||||||||||||||||||||||
| PER SHARE INFORMATION | |||||||||||||||||||||||||||||||||||
| Average number of shares (EUR thousands) (O) | 15,497,607 | 16,172,085 | 16,848,345 | 14,995,835 | 15,664,707 | ||||||||||||||||||||||||||||||
| Basic earnings per share (euros) | 0.77 | 0.65 | 0.54 | 0.43 | 0.37 | ||||||||||||||||||||||||||||||
| Basic earnings per share continuing operation (euros) | 0.69 | 0.59 | 0.51 | 0.38 | 0.33 | ||||||||||||||||||||||||||||||
| Diluted earnings per share (euros) | 0.77 | 0.65 | 0.54 | 0.43 | 0.37 | ||||||||||||||||||||||||||||||
| Diluted earnings per share continuing operation (euros) | 0.69 | 0.59 | 0.51 | 0.38 | 0.33 | ||||||||||||||||||||||||||||||
| Remuneration (euros) (P) | 0.2100 | 0.1760 | 0.1178 | 0.1100 | 0.0950 | ||||||||||||||||||||||||||||||
| Remuneration (US$) (P) | 0.2182 | 0.1945 | 0.1258 | 0.1290 | 0.1020 | ||||||||||||||||||||||||||||||
| OPERATING DATA | |||||||||||||||||||||||||||||||||||
| Number of employees (Q) | 206,753 | 212,764 | 206,462 | 204,330 | 209,553 | ||||||||||||||||||||||||||||||
| Number of branches | 8,011 | 8,518 | 9,019 | 7,683 | 8,285 | ||||||||||||||||||||||||||||||
(A) Total customer funds includes customer deposits, mutual funds, pension funds and managed portfolios. See notes 21 and 35 to our consolidated financial statements included in Part 1 of our 2024 Form 20-F.
(B) Equals the sum of the amounts included at the end of each year as 'Shareholders’ equity' and 'Other comprehensive income' as stated in our consolidated financial statements included in Part 1 of this report. We have deducted the book value of treasury stock from stockholders’ equity.
(C) Other Subordinated debt includes issuances by subsidiaries not guaranteed by Banco Santander, S.A., excluding preference shares and preferred securities.
(D) In our consolidated financial statements included in Part 1 of this report, preference shares and preferred securities are included under 'Subordinated liabilities'.
(E) Net Operating Income is used for the Group’s internal reporting and management reporting purposes but is not a line item in the statutory consolidated income statement. Net operating income equals the sum of 'Total income', 'Administrative expenses' and 'Depreciation and amortization' as stated in our consolidated financial statements included in Part 1 of this report.
(F) The Return on average stockholders’ equity ratio is calculated as profit attributable to the Parent divided by average stockholders’ equity.
(G) The Return on average tangible equity ratio (ROTE) is calculated as profit attributable to the Parent excluding goodwill impairment divided by the monthly average of: capital + reserves + retained earnings + other comprehensive income (excluding non-controlling interests) - goodwill - other intangible assets. We provide this non-GAAP financial measure as an additional measure to return on equity to provide a way to look at our performance which is closely aligned to our capital position.
(H) The Return on average tangible equity ratio (ROTE) post-AT1 is calculated as profit attributable to the Parent excluding goodwill impairment minus AT1 costs divided by the monthly average of: capital + reserves + retained earnings + other comprehensive income (excluding non-controlling interests) - goodwill - other intangible assets. We provide this non-GAAP financial measure deducting the cost of AT1 issuances from the numerator because this is the definition of ROTE that is commonly used as a measure of profitability over tangible equity.
(I) Consolidated profit and profit attributable to the Parent for the six months ended 30 June 2025 and 30 June 2024 have been annualized by doubling the recurring results, that is, assuming that non-recurring results registered during the first half of the year (if any) will not be repeated in the second half of the year. In the first half of 2025 we registered a non-recurring loss of EUR 26 million in 'consolidated profit' while in the first half of 2024 there were no non-recurring results See Part 1 - Interim consolidated directors' report - Alternative performance measures - Underlying results. We believe that annualizing the profits by doubling only the recurring amounts presents an accurate picture of the evolution of our profitability. Consolidated profit and profit attributable to the Parent for the first half of any year are not necessarily indicative of the results for that full year.
170 | | January - June 2025 | ||||||
(EUR million, except percentages) | |||||||||||||||||||||||||||||||||||
| 2024 | 2023 | 2022 | 30 June 2025 | 30 June 2024 | |||||||||||||||||||||||||||||||
| Profit attributable to the parent (I) | 12,574 | 11,076 | 9,605 | 13,665 | 12,118 | ||||||||||||||||||||||||||||||
| Profit attributable to the parent excluding goodwill impairment (I) | 12,578 | 11,096 | 9,605 | 13,666 | 12,120 | ||||||||||||||||||||||||||||||
| Profit attributable to the parent excluding goodwill impairment and deducting AT1 costs (I) | 11,958 | 10,603 | 9,076 | 13,046 | 11,501 | ||||||||||||||||||||||||||||||
| Average equity | 96,744 | 93,035 | 89,986 | 100,703 | 96,151 | ||||||||||||||||||||||||||||||
| Effect of goodwill and other intangible assets | (19,428) | (19,361) | (18,164) | (19,030) | (19,755) | ||||||||||||||||||||||||||||||
| Average tangible equity | 77,316 | 73,675 | 71,822 | 81,673 | 76,396 | ||||||||||||||||||||||||||||||
| Return on equity (ROE) (%) | 13.0 | 11.9 | 10.7 | 13.6 | 12.6 | ||||||||||||||||||||||||||||||
| Return on tangible equity (ROTE) (%) | 16.3 | 15.1 | 13.4 | 16.7 | 15.9 | ||||||||||||||||||||||||||||||
| Return on tangible equity (ROTE) post AT1 (%) | 15.5 | 14.4 | 12.6 | 16.0 | 15.1 | ||||||||||||||||||||||||||||||
(J) Fully loaded CET1 ratios are calculated without application of the transitory IFRS 9 provisions nor the subsequent amendments introduced by Regulation 2020/873 of the European Union. The phased-in CET1 ratios reflect the application of the transitory provisions and subsequent amendments introduced by Regulation 2020/873 of the European Union.
(K) Reflect Bank of Spain classifications. These classifications differ from the classifications applied by US banks in reporting loans as non-accrual, past due, restructured and potential problem loans. See note 2 to our consolidated financial statements included in Part 1 of our 2024 Form 20-F.
(L) We disclose these ratios because our credit risk exposure comprises loans and advances to customers as well as contingent liabilities, all of which are subject to impairment and, therefore, allowances are taken in respect thereof. These credit ratios are prepared for management purposes and therefore include the assets and results associated with the businesses subject to the Poland disposal.
(M) Credit impaired balances include credit impaired loans and advances, customer guarantees and customer commitments granted.
(N) Pay-out information for the six months ended 30 June 2025 and 2024 and for the year-end is not comparable. The interim figures for the six months ended 30 June 2025 and 2024 include in the numerator cash dividends paid during the first half of the year on account of that year (therefore, zero, given that the first interim dividend on account of every year is paid in the second half of that year) while the full-year figures include in the numerator all cash dividends paid or to be paid on account of that year.
(O) Average number of shares has been calculated on a monthly basis as the weighted average number of shares outstanding in the relevant year, net of treasury stock.
(P) With regard to the remuneration policy against the 2022 earnings, the board continued the policy of allocating approximately 40% of the Group's underlying profit to shareholder remuneration, split in approximately equal parts in cash dividends and share buybacks.
Interim remuneration. On 27 September 2022, the board authorized the payment of an interim cash dividend against 2022 results of 5.83 euro cents per share (equivalent to approximately 20% of the Group's underlying profit in the first half 2022). The interim dividend was paid on 2 November 2022. The board also agreed to implement the First 2022 Buyback Programme worth approximately EUR 979 million (approximately 20% of the Group's underlying profit in first half 2022) following the ECB approval on 17 November 2022. The First 2022 Buyback Programme was completed on 31 January 2023, and resulted in the acquisition of a total of 340,406,572 shares.
Final remuneration. On 27 February 2023, per the 2022 shareholder remuneration policy, the board of directors voted to: (i) submit a resolution at the 31 March 2023 AGM to approve a final cash dividend in the gross amount of 5.95 euro cents per share entitled to receive dividends (following the approval at the AGM, the dividend was paid on 2 May 2023); and (ii) implement a Second 2022 Buyback Programme worth EUR 921 million, that commenced on 1 March 2023 and was completed on 21 April 2023, resulting in the acquisition of a total of 269,848,953 shares.
Total shareholders' remuneration for 2022 amounted to EUR 3,842 million (approximately 40% of the underlying profit in 2022) split in approximately equal parts in cash dividends (EUR 1,942 million) and share buybacks (EUR 1,900 million).
With regard to the remuneration policy against the 2023 earnings, the board followed a policy of allocating 50% of the Group’s reported profit, excluding non-cash, non-capital ratios impact items, to shareholder remuneration, distributed in approximately 50% in cash dividend and 50% in share buybacks.
Interim remuneration. On 26 September 2023, the board resolved to pay an interim cash dividend against the 2023 results of 8.10 euro cents per share entitled to the dividend (equivalent to approximately 25% of the Group's reported profit in the first half of 2023). The interim dividend was paid on 2 November 2023. The board also agreed to implement the First 2023 Buyback Programme worth approximately EUR 1,310 million (equivalent to approximately 25% of the Group's reported profit in the first half of 2023). The First 2023 Buyback Programme was completed on 25 January 2024, and resulted in the acquisition of a total of 358,567,487 shares.
Final remuneration. Under the 2023 shareholder remuneration policy, on 19 February 2024, the board of directors resolved to submit a resolution at the 22 March 2024 AGM to approve a final cash dividend in the gross amount of 9.50 euro cents per share entitled to dividends. Following the approval at the AGM, the dividend was paid from 2 May 2024. The board of directors also resolved to implement the Second 2023 Buyback Programme worth EUR 1,459 million, which commenced on 20 February 2024 and was completed on 17 June 2024 resulting in the acquisition of a total of 331,305,000 shares.
Total shareholders' remuneration for 2023 amounted to EUR 5,538 million (approximately 50% of the Group's reported profit in 2023), distributed in approximately 50% in cash dividend and 50% in share buybacks.
With regard to the remuneration policy against the 2024 earnings, the board continued the policy of allocating approximately 50% of the Group's underlying profit to shareholder remuneration, split in approximately equal parts in cash dividends and share buybacks.
Interim remuneration. On 24 September, the Board approved the payment of an interim cash dividend against the 2024 results of 10 euro cents per share (equivalent to approximately 25% of the Group's underlying profit in the first half of 2024). The interim dividend was paid on 2 November 2024. The board also approved the implementation of a share repurchase programme (the First 2024 Buyback Programme) worth approximately EUR 1,525 million (equivalent to approximately 25% of the Group's underlying profit in the first half of 2024), which was completed on 4 December 2024, and resulted in the acquisition of a total of 341,781,250 shares.
Final remuneration. Under the 2024 shareholder remuneration policy, on 25 February 2025 the board resolved to implement the Second 2024 Buyback Programme worth approximately EUR 1,587 million (equivalent to approximately 25% of the Group´s underlying profit in the second half of 2024), which was completed on 2 June 2025 and resulted in
| January - June 2025 | | 171 | ||||||
the acquisition of a total of 267,166,950 shares. In addition, on 25 February 2025, the board of directors resolved to submit a resolution at the 2025 AGM to approve a final cash dividend in the gross amount of 11 euro cents per share entitled to dividends. Following the approval at the 2025 AGM, the dividend was paid from 2 May 2025.
Total shareholders' remuneration for 2024 totalled EUR 6,287 million (approximately 50% of the Group underlying profit in 2024), distributed as approximately 50% in cash dividends (EUR 3,175 million) and 50% in share buybacks (EUR 3,112 million).
Remuneration per share for the six months ended 30 June 2025 and 2024 and for the year-end is not comparable. The remuneration per share disclosed for each financial year includes all dividends paid or to be paid on account of that financial year. The remuneration per share disclosed for the periods ended 30 June 2025 and 30 June 2024 includes the cash dividends paid in those periods; that is, EUR 11 cents per share paid during the first half of 2025 on account of the 2024 financial year, and EUR 9.50 cents per share paid during the first half of 2024 on account of the 2023 financial year.
(Q) Includes employees in the businesses subject to the Poland disposal (10,652 employees as of 30 June 2025).
Set forth below is a table showing our allowances for credit impaired balances broken down by various categories as disclosed and discussed throughout this report on Form 6-K:
| 2024 | 2023 | 2022 | 30 June 2025 | 30 June 2024 | ||||||||||||||||||||||
| Allowances refers to: | (EUR million) | |||||||||||||||||||||||||
| Allowances for total balances (A) | 22,835 | 23,490 | 23,418 | 21,462 | 23,323 | |||||||||||||||||||||
| Allowances for contingent liabilities and commitments | 710 | 702 | 734 | 652 | 698 | |||||||||||||||||||||
| Allowances for total balances (excluding contingent liabilities and commitments): | 22,125 | 22,788 | 22,684 | 20,810 | 22,625 | |||||||||||||||||||||
| Other allowances (B) | 354 | 295 | 232 | 403 | 391 | |||||||||||||||||||||
| Allowances for total balances (excluding contingent liabilities and commitments) | 22,479 | 23,083 | 22,916 | 21,213 | 23,016 | |||||||||||||||||||||
| Of which: | ||||||||||||||||||||||||||
| Allowances for customers | 22,125 | 22,788 | 22,684 | 20,810 | 22,625 | |||||||||||||||||||||
| Allowances for credit institutions and other financial assets | 5 | 9 | 6 | 7 | 4 | |||||||||||||||||||||
| Allowances for Debt instruments | 349 | 286 | 226 | 396 | 387 | |||||||||||||||||||||
| Allowances for Financial assets at amortised cost | 22,327 | 22,950 | 22,888 | 21,086 | 22,815 | |||||||||||||||||||||
| Allowances for Financial assets at fair value through other comprehensive income | 152 | 133 | 28 | 127 | 201 | |||||||||||||||||||||
(A) Allowances for credit impaired loans and advances to customers, customer guarantees and customer commitments granted. As of 30 June 2025, these metrics exclude the assets associated with the businesses subject to the Poland disposal. Including those assets 'Allowances for total balances' would amount to EUR 22,441 million.
(B) Includes mainly allowances for debt instruments.
172 | | January - June 2025 | ||||||
ITEM 4. RISK FACTORS
For a description of risks associated with Banco Santander and the Group, see the section entitled 'Risk Factors' in our 2024 Form 20-F. Set out below are certain risk factors which could have a material adverse effect on Banco Santander’s and the Group’s business, operations, financial condition or prospects and cause future results to be materially different from expected results. The risks appearing below update and supplement certain risks highlighted in our 2024 Form 20-F. These risks should be read in conjunction with the other risks appearing in our 2024 Form 20-F and all of the other information appearing in this report on Form 6-K and should not be regarded as a complete and comprehensive statement of all potential risks and uncertainties that Banco Santander and the Group face. In addition, Banco Santander’s results could be affected by competition and other factors, there may be additional risks that Banco Santander currently considers not to be material or of which we are not currently aware, and any of these risks could also have a material adverse effect on our operations, financial condition or prospects. All of these factors are contingencies which may or may not occur and Banco Santander is not in a position to express a view on the likelihood of any such contingency occurring.
Our growth, asset quality and profitability, among others, may be adversely affected by a slowdown in one or more of the economies in which we operate and volatile macroeconomic and political conditions.
A slowdown or recession of one or more of the economies in which we operate could lead major financial institutions, including some of the world’s largest global commercial banks, investment banks, mortgage lenders, mortgage guarantors and insurance companies to experience significant difficulties, including runs on deposits, the need for government aid or assistance or the need to reduce or cease providing funding to borrowers (including to other financial institutions).
Volatile conditions in the global financial markets could also have a material adverse effect on us, including on our ability to access capital and liquidity on financial terms acceptable to us, if at all. If capital markets financing ceases to become available, or becomes excessively expensive, we may be forced to raise the rates we pay on deposits to attract more customers and become unable to maintain certain liability maturities. Any such adverse impact in capital markets funding availability or costs or in deposit rates could have a material adverse effect on our interest margins and liquidity.
In particular, we face, among others, the following risks related to the economic downturn and volatile conditions:
•Reduced demand for our products and services.
•Increased regulation of our industry. Compliance with such regulation would likely continue to increase our costs and may affect the pricing for our products and services, increase our conduct and regulatory risks related to non-compliance and limit our ability to pursue business opportunities.
•Inability of our borrowers to timely or fully comply with their existing obligations. Macroeconomic shocks may negatively impact the income of our customers, both retail and corporate, and may adversely affect the recoverability of our loans, resulting in increased loan losses.
•The process we use to estimate losses inherent in our credit exposure requires complex judgements, including forecasts of economic conditions and how these economic conditions might impair the ability of our borrowers to repay their loans. The degree of uncertainty concerning economic conditions may adversely affect the accuracy of our estimates, which may, in turn, impact the reliability of the process and the sufficiency of our loan loss allowances.
•The value and liquidity of the portfolio of investment securities that we hold may be adversely affected.
The recoverability of our loan portfolios and our ability to increase the amount of loans outstanding and our results of operations and financial condition in general, are dependent to a significant extent on the level of economic activity in Europe (in particular, Spain and the United Kingdom (UK)), North America (in particular, Mexico and the US) and South America (in particular, Brazil). The credit quality of our loan portfolio may deteriorate as a result of these risks and our loan loss reserves could be insufficient to cover our loan losses, which could have a material adverse effect on us. See risk factor '2.2.1 The credit quality of our loan portfolio may deteriorate and our loan loss reserves could be insufficient to cover our loan losses, which could have a material adverse effect on us' in our 2024 Form 20-F.
In addition, we are exposed to sovereign debt in these regions. Our net exposure to sovereign debt at 31 December 2024 amounted to EUR 198,627 million (10.81% of our total assets at that date) of which the main exposures in the eurozone relate to Spain and Portugal with net exposure of EUR 56,293 million and EUR 7,652 million, respectively. In North America, the main exposures relate to Mexico and the US (EUR 21,642 million and EUR 24,926 million, respectively) and in South America to Brazil (EUR 26,641 million). For more information on our exposure to sovereign debt, see note 54.b) 4.4 to our 'Consolidated financial statements' included in Part 1 of our 2024 Form 20-F. Recessionary conditions in the economies of Europe, North America or some of the South American countries in which we operate, would likely have a significant adverse impact on our loan portfolio and sovereign debt holdings and, as a result, on our financial condition, cash flows and results of operations.
Our revenues are also subject to risk of deterioration from unfavourable political and diplomatic developments, social instability, international conflicts, and changes in governmental policies, including expropriation, nationalization, international ownership legislation, sanctions, interest-rate caps, fiscal and monetary policies globally.
For the year ending 31 December 2024, 48% of the underlying profit attributable to the Parent came from Europe (of which 27% was from Spain and 10% from the UK), 28% from South America (18% from Brazil), 20% from North America (8% from the US and 12% from Mexico) and 5% from the Digital Consumer Bank Europe segment. As of 31 December 2024, our total assets stood at 55% in Europe (29% in Spain and 18% in the UK), 18% in South America (12% in Brazil), 17% in North America (12% in the US and 5% in Mexico) and 10% in the Digital Consumer Bank Europe segment.
| January - June 2025 | | 173 | ||||||
In particular, the main regions where we operate are subject to the following macroeconomic and political conditions, which could have a material adverse effect on our business, results of operations, financial condition and prospects:
•After a period of persistent high inflation throughout the world, particularly in Europe and the US, during 2023 and 2024 inflation slowly converged towards central banks' objectives allowing interest rates cuts during the second half of 2024 and the first half of 2025. Additionally, markets have focused on the timing and amount of policy interest rate cuts by central banks around the world, given their implications for the economic environment and growth. A return to periods of high inflation could result in higher operating costs, a decrease in the purchasing power of families with the consequent increase in delinquencies in our credit portfolios, and lower economic growth derived from the tightening of monetary and fiscal policies aimed at containing inflation, among other risks, any of which could have a material adverse effect on our operations, financial condition and prospects.
•Scenarios of political tensions and instability throughout the world stemming from a variety of factors, such as heightened polarization and political fragmentation and scandals, may lead to shifting and unpredictable outcomes in political elections, legislative and policy-making efforts, social conditions, government stability and the global economy and to the progressive erosion of the rule of law in certain long-standing democracies. Furthermore, increasing public debt levels together with high interest costs may not be sustainable and could lead certain countries to have higher sovereign risk premia and sovereign debt crises. A deterioration of the global economic, political, social and financial environment, particularly in Europe and the Americas, could have a material adverse impact on the financial sector, affecting our operating results, financial position and prospects.
In particular, the risk of returning in Europe to a fragile and volatile environment, heightened political tensions or recession could be aggravated if, among others, (i) the German economy falls into recession due to reduced competitiveness of its industrial sector, (ii) the policies implemented by the European Union (EU) countries to, among other things, increase defense spending, rearm Europe and provide Ukraine with assistance and support to alleviate the consequences of the war, do not succeed, (iii) the reforms aimed at improving the labour market, productivity and competitiveness fail, (iv) the banking union and other measures of European integration do not take hold, or (v) anti-European groups become more widespread.
•Growing protectionism and trade tensions could intensify and negatively impact the economies of the countries where we operate. The US's new presidential administration has increased tariffs, and the possibility for new or increased trade tariffs exists. Certain US trading partners have announced retaliatory actions, including tariffs, in response. The continuation, pause or escalation of tariffs and other trading restrictions, the depreciation of the USD and other non-trade-related measures or policies of the US’s new presidential administration, including immigration reforms, could reshape international trade relations, investment flows and supply chains significantly, resulting in market volatility and lower growth globally, intensifying concerns over the global macroeconomic environment, the impact on inflation and the potential for a recession. Any of the foregoing could have a material adverse effect on our business, results of operations, financial condition and prospects.
•The shift of the global economy’s centre of gravity from the Atlantic to the Pacific and, more particularly, China's increasing relevance as a key trading partner and source of financing for Latin American economies, could negatively impact US and European banks, particularly those like us with limited presence in Asia, reducing our global market share and customer base and affecting our business, operating results, financial condition and prospects.
•Uncertain outlook for China, including weak economic growth and related policy actions, and tensions or conflicts between China and Taiwan or between China and the US, could negatively affect the world economy and impact our operating results, financial condition and prospects.
•The economies of some of the countries where we operate, particularly in Latin America, face long-standing structural problems, including weaknesses in infrastructure, economic competitiveness and education, high levels of social inequality, rising inflation and increasing public debt levels and have experienced significant volatility in recent decades. This volatility resulted in fluctuations in the levels of deposits and in the relative economic strength of various segments of the economies to which we lend. In addition, some of the countries where we operate are particularly affected by commodities price fluctuations, which in turn may affect financial market conditions through exchange rate fluctuations, interest rate volatility and deposits volatility. In addition, we are exposed to variations in our net interest income or in the fair value of our assets and liabilities resulting from exchange rate fluctuations. Fiscal instability, political tensions and financial volatility, particularly in Brazil, Mexico, Chile and Argentina, could have a negative impact on the economy of these countries and may have a material adverse effect on us.
•Other risks that could negatively affect the economies and financial markets of the regions where we operate and lead to a slowdown of the global economy, recession, inflationary pressures and/or stagflation include (i) the depreciation of the USD against the euro and other currencies that could lead to a widespread loss of confidence in the USD; (ii) the continuance or escalation of the wars in Ukraine and the Middle East; (iii) increases in the prices of energy and other commodities; (iv) the breakdown of global supply chains; and (v) the return to tight monetary and fiscal policies, including by rising interest costs.
The continuance or escalation of the wars in Ukraine and the Middle East could materially affect our financial position and increase our operational risk.
On 24 February 2022, Russia launched a large-scale military action against Ukraine. The war in Ukraine has caused an ongoing humanitarian crisis in Europe as well as volatility in financial markets globally, heightened inflation, shortages and increases in the prices of energy, oil, gas and other commodities. The continuance or escalation of the war, including its extension to other countries in the region, has led to, and could continue to lead to further increases in energy, oil and gas prices (particularly if supplies to Europe are interrupted) and inflationary pressures, which in turn could lead to increases in interest rates and market volatility. In addition, the war has exacerbated supply chain problems, particularly to those businesses most sensitive to rising energy prices. The war and its effects has exacerbated and could continue to exacerbate the slowdown in the global economy and could negatively affect the payment capacity of some of our customers, especially those with more exposure to the Russian or Ukrainian markets.
174 | | January - June 2025 | ||||||
In response to the Russian military action against Ukraine, several countries, including the US, the EU member states, the UK and other UN member states, have imposed severe sanctions on Russia and Belarus, including freezing/blocking assets, targeting major Russian banks, the Russian Central Bank, and certain Russian companies and individuals, imposing trade restrictions against Russia and Russian interests, as well as the disconnection of certain Russian banks from the SWIFT system (Society for Worldwide Interbank Financial Telecommunication). In addition, the sanctions imposed also include a ban on trading in sovereign debt and other securities. The scale of sanctions is unprecedented, complex and rapidly evolving, and poses continuously increasing operational risk to the Group. Our corporate framework and policies are designed to ensure compliance with applicable laws, regulations and economic sanctions in the countries in which we operate, including US, UK, EU and UN economic sanctions. We cannot predict whether any of the countries in which we operate will enact additional economic sanctions or trade restrictions in response to the Russian military action against Ukraine. While we do not knowingly engage in direct or indirect dealings with sanctioned parties according to applicable sanctions, or in direct dealings with the sanctioned countries/territories, we may on occasion have indirect dealings within the sanctioned countries/territories, but aim to operate in line with applicable US, EU, UK and UN blocking and sectoral sanctions regulations.
Furthermore, the risk of cyberattacks on companies and institutions has increased and could increase even further as a result of the wars. Although we actively monitor for cyberattacks, there can be no assurance that our cybersecurity and data protection measures and defences will be effective at identifying, preventing, mitigating or remediating any such cyberattacks.
On 7 October 2023, Hamas launched an attack on Israel targeting Israeli civilians. In response, Israel declared war against Hamas, attacking Hamas targets in Gaza and the region. In 2024, in response to attacks from Lebanon and Iran, Israel attacked Lebanon targeting Hezbollah infrastructure and leaders and carried out airstrikes against Iranian military sites. In June 2025, the ongoing conflict between Israel and Iran escalated following a resolution passed by the International Atomic Energy Agency (IAEA), a United Nations-backed atomic watchdog. This resolution alleged that Iran had not been in compliance with its nuclear non-proliferation obligations. Subsequently, the two nations exchanged missile and drone strikes, and the US carried out attacks on Iranian nuclear facilities with the stated intent of preventing Iran from developing a nuclear weapon. Press reporting suggests these strikes caused substantial but not decisive damage, likely delaying Iran’s enrichment activities by months to a few years. A cease-fire declared on 24 June 2025 remains fragile, with isolated breaches underscoring the risk that hostilities could resume. These conflicts, especially if they lead to further escalation, additional countries becoming involved, or resulting conflicts in the region, could exacerbate the ongoing humanitarian crisis and could lead to higher oil and gas prices, the imposition of sanctions, travel and import/export restrictions, further disruptions in supply chains, inflationary pressures and market volatility, among other potential consequences.
We do not have a physical presence in Russia and Ukraine and our physical presence in the Middle East is very limited. Further, our direct exposure to Russian, Ukrainian or Middle Eastern markets is not material. However, the impact of the wars and sanctions on global markets, macroeconomic conditions globally, and other potential future geopolitical tensions and consequences remain uncertain and may exacerbate our operational risk. Episodes of economic and market volatility and pressure on supply chains and inflation may continue to occur and could worsen if the wars persist or increase in severity. As a result, our businesses, results of operations and financial position could be adversely affected by any of these factors directly or indirectly arising from the wars in Ukraine and the Middle East.
If we are unable to manage the growth of our operations, to integrate successfully our inorganic growth, or to execute successfully any of our strategic actions, this could have an adverse impact on our profitability.
We allocate management and planning resources to develop strategic plans, priorities, policies and targets, including for organic growth, and to identify potential acquisitions, divestitures and areas for restructuring our businesses. The execution of these initiatives is subject not only to external factors but also to our own decisions, including those that alter or redefine our business practices, operational frameworks, strategic objectives, corporate priorities, internal policies, and procedural guidelines.
We cannot provide assurance that we will, in all cases, be able to deliver our strategic plans, priorities, policies and targets. Furthermore, in order to grow and remain competitive, we will need to adapt to changes to meet the demands and expectations of regulators, our clients, shareholders and other stakeholders, including in relation to matters of public policy, regardless of whether there is a legal requirement to do so. We cannot guarantee that we will be able to implement changes to any of our strategic plans, priorities, policies and targets, in a timely and appropriate manner, or that we will be able to accurately predict trends, initiatives and business practices of financial institutions. It is also possible that regulators, our clients, shareholders and other stakeholders might not be satisfied or even disagree with our strategic plans, priorities, policies and targets, or the speed of their adoption, implementation, evolution and consequences.
From time to time, we evaluate acquisition, partnership, divestiture and other strategic opportunities that we believe offer additional value to our shareholders and are consistent with our business strategy. However, we may not be able to identify suitable acquisition, partnership, divestiture or other strategic candidates. Additionally, we may be unable to complete ongoing or future acquisitions, partnerships, divestitures or other strategic transactions in a timely or cost-effective manner, on the originally announced terms, or at all.
Even if we successfully complete any of such transactions, we may not be able to successfully realize the expected results, benefits or synergies in a timely manner or at all. These results, benefits or synergies could also be adversely affected by acquisition- or divestiture-related charges and contingencies. In particular, our ability to benefit from any acquisitions and partnerships will depend in part on our successful integration of those businesses. Any such integration entails significant risks such as unforeseen difficulties in integrating operations and systems, unexpected liabilities or contingencies relating to the acquired businesses, including legal claims and delivery and execution risks. We can give no assurances that our expectations with regards to integration and synergies will materialize. In addition, any acquisition or venture could result in inconsistencies in standards, controls, procedures and policies. Moreover, the success of any acquisition or venture will, at least in part, be subject to a number of political, economic and other factors that are beyond our control. Any of these factors, individually or collectively, could have a material adverse effect on us.
We may also be subject to litigation in connection with, or as a result of, any such transactions, including claims from terminated employees, customers, suppliers or third parties. For example, we may be held responsible for the activities of an acquired business in the case of an acquisition. This includes liability for actions or non-compliance of an acquired business prior to its acquisition or in connection with its acquisition
| January - June 2025 | | 175 | ||||||
or integration. In the case of a divestiture, we may be required to indemnify the buyer for certain liabilities, including for uncapped amounts, in connection with claims against the divested entity or business.
Completion and integration of any such transactions may also divert management attention from other matters, result in additional costs and expenses or adversely affect our relationships with our customers, suppliers, employees and any other third parties, any of which may adversely affect our business or results of operations.
The challenges that may arise from our decisions include:
•managing efficiently the operations and employees of expanding businesses;
•maintaining or growing our existing customer base;
•assessing the value, strengths and weaknesses of investment or acquisition candidates, including local regulation that can reduce or eliminate expected synergies;
•financing strategic investments or acquisitions;
•aligning our current information technology systems adequately with those of an enlarged group;
•applying our risk management policy effectively to an enlarged group;
•managing a growing number of entities without over-committing management or losing key personnel; and
•meeting the expectations of regulators and our clients, shareholders and other stakeholders.
Furthermore, there is no assurance that changes to our operating model, such as the change that became effective on 1 January 2024, which included the reorganization of our primary and secondary segments, will yield all of the expected benefits in the timeframes that we expect.
Any failure to manage growth effectively, an inability to successfully adapt to changing conditions or to execute successfully any of our strategic actions, or any changes in our business practices, operational framework, strategic objectives, corporate priorities, internal policies and procedural guidelines could have a material adverse effect on our operating results, financial condition and prospects.
176 | | January - June 2025 | ||||||
ITEM 5. INFORMATION ON THE COMPANY
5.1. Average balance sheets and interest rates
The following tables include, by domicile of the Group entity at which the relevant asset or liability is accounted for, our average balances and interest rates for the six months ended 30 June 2025 and 2024. Domestic balances are those of the Group entities domiciled in Spain, which reflect our domestic activities, and international balances are those of the Group entities domiciled outside of Spain, which reflect our foreign activities.
The Poland disposal has impacted year-on-year variations in the information presented herein, primarily as follows:
•In the statutory income statement, the results associated with the businesses subject to the Poland disposal are reported under a single line in the consolidated income statement — 'profit/(loss) after tax from discontinued operations' — for the six month-periods ended 30 June 2025 and 2024. Consequently, the results associated with the businesses subject to the Poland disposal are excluded line by line from the breakdown of continuing operations in both periods. Due to such reclassification, the consolidated income statement data for the six month-period ended 30 June 2024 differs from the consolidated income statement data for such period filed with the SEC on 26 July 2024. All other figures remain unchanged.
•In the consolidated balance sheet, the assets associated with the businesses subject to the Poland disposal are classified under the 'non-current assets held for sale' line item and the related liabilities under 'liabilities associated with non-current assets held for sale'. This classification applies solely to the balance sheet as of 30 June 2025 and does not affect prior periods. However, to facilitate meaningful analysis and comparability of the information presented herein, average balance sheets for the six months ended 30 June 2025 and 2024 were calculated based on adjusted month-end data (January through June) classifying assets and liabilities associated with the businesses subject to the Poland disposal under 'assets/liabilities from discontinued operations'.
To better understand the behaviour of average balance sheets and interest rates, we have split our foreign activities into ‘International – Mature markets’ which include Europe (except for Spain and Poland) and the United States and ‘International – Developing markets’ which include South America, Mexico and Poland.
You should read the following tables and the tables included under '—Changes in Net Interest Income/(charges)—Volume and Rate Analysis' and '—Assets—Earning Assets—Yield Spread' considering the following:
•We have included in interest income loan arrangement fees and other similar items;
•We have not recalculated tax-exempt income on a tax-equivalent basis because the effect of doing so would not be significant;
•We have included income and expenses from interest-rate hedging transactions as a separate line item under interest income and expenses if these transactions qualify for hedge accounting under IFRS-IASB. If these transactions do not qualify for such treatment, we have included income and expenses on these transactions elsewhere in our income statement. See Note 2 to our consolidated financial statements included in Part 1 of our 2024 Form 20-F for a discussion of our accounting policies for hedging activities;
•We have stated average balances on a net basis, netting our allowances for credit losses; and
•All average data have been calculated as the simple average of month-end balances over the relevant date range, which is not significantly different from having used daily averages.
| January - June 2025 | | 177 | ||||||
Average Balance Sheet - Assets and Interest Income
| Six months ended 30 June, | ||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| ASSETS | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||||||||||
| (EUR million, except percentages) | ||||||||||||||||||||||||||
| Cash balances at central banks and other deposits on demand, and loans and advances to central banks and credit institutions | 283,498 | 7,041 | 4.97 | % | 284,730 | 8,595 | 6.04 | % | ||||||||||||||||||
| Domestic | 110,379 | 1,888 | 3.42 | % | 103,463 | 2,499 | 4.83 | % | ||||||||||||||||||
| International - Mature markets | 111,414 | 2,431 | 4.36 | % | 119,017 | 3,067 | 5.15 | % | ||||||||||||||||||
| International - Developing markets | 61,705 | 2,722 | 8.82 | % | 62,250 | 3,029 | 9.73 | % | ||||||||||||||||||
| Of which | ||||||||||||||||||||||||||
| Reverse repurchase agreements | 62,784 | 2,478 | 7.89 | % | 59,880 | 2,824 | 9.43 | % | ||||||||||||||||||
| Domestic | 33,778 | 869 | 5.15 | % | 30,942 | 942 | 6.09 | % | ||||||||||||||||||
| International - Mature markets | 7,438 | 212 | 5.70 | % | 7,259 | 259 | 7.14 | % | ||||||||||||||||||
| International - Developing markets | 21,568 | 1,397 | 12.95 | % | 21,679 | 1,623 | 14.97 | % | ||||||||||||||||||
| Loans and advances to customers | 1,019,299 | 35,670 | 7.00 | % | 1,013,919 | 37,371 | 7.37 | % | ||||||||||||||||||
| Domestic | 269,633 | 5,555 | 4.12 | % | 266,252 | 6,096 | 4.58 | % | ||||||||||||||||||
| International - Mature markets | 562,694 | 16,279 | 5.79 | % | 552,389 | 16,641 | 6.03 | % | ||||||||||||||||||
| International - Developing markets | 186,972 | 13,836 | 14.80 | % | 195,278 | 14,634 | 14.99 | % | ||||||||||||||||||
| Of which | ||||||||||||||||||||||||||
| Reverse repurchase agreements | 67,676 | 2,618 | 7.74 | % | 54,379 | 2,818 | 10.36 | % | ||||||||||||||||||
| Domestic | 11,218 | 202 | 3.60 | % | 11,673 | 241 | 4.13 | % | ||||||||||||||||||
| International - Mature markets | 55,271 | 2,378 | 8.60 | % | 42,104 | 2,534 | 12.04 | % | ||||||||||||||||||
| International - Developing markets | 1,187 | 38 | 6.40 | % | 602 | 43 | 14.29 | % | ||||||||||||||||||
| Debt securities | 275,234 | 7,896 | 5.74 | % | 242,425 | 7,603 | 6.27 | % | ||||||||||||||||||
| Domestic | 116,375 | 1,903 | 3.27 | % | 91,123 | 1,815 | 3.98 | % | ||||||||||||||||||
| International - Mature markets | 71,863 | 1,257 | 3.50 | % | 60,020 | 1,021 | 3.40 | % | ||||||||||||||||||
| International - Developing markets | 86,996 | 4,736 | 10.89 | % | 91,282 | 4,767 | 10.44 | % | ||||||||||||||||||
| Income from hedging operations | 774 | 1,425 | ||||||||||||||||||||||||
| Domestic | 181 | 22 | ||||||||||||||||||||||||
| International - Mature markets | 600 | 1,155 | ||||||||||||||||||||||||
| International - Developing markets | (7) | 248 | ||||||||||||||||||||||||
| Other interest | (43) | 37 | ||||||||||||||||||||||||
| Domestic | (120) | (36) | ||||||||||||||||||||||||
| International - Mature markets | 17 | 21 | ||||||||||||||||||||||||
| International - Developing markets | 60 | 52 | ||||||||||||||||||||||||
| Total Interest-earning assets | 1,578,031 | 51,338 | 6.51 | % | 1,541,074 | 55,031 | 7.14 | % | ||||||||||||||||||
| Domestic | 496,387 | 9,407 | 3.79 | % | 460,838 | 10,396 | 4.51 | % | ||||||||||||||||||
| International - Mature markets | 745,971 | 20,584 | 5.52 | % | 731,426 | 21,905 | 5.99 | % | ||||||||||||||||||
| International - Developing markets | 335,673 | 21,347 | 12.72 | % | 348,810 | 22,730 | 13.03 | % | ||||||||||||||||||
| Other non-interest-earning assets | 191,334 | 193,394 | ||||||||||||||||||||||||
| Assets from discontinued operations | 66,101 | 57,960 | ||||||||||||||||||||||||
| Total Average Assets | 1,835,466 | 51,338 | 1,792,428 | 55,031 | ||||||||||||||||||||||
Note: As of 30 June 2025 and 30 June 2024, Total Average Assets attributed to international activities accounted for 69% and 70%, respectively, of the Group's Total Average Assets. (International - Mature markets accounted for 44% and 44%, respectively, and International - Developing markets accounted for 25% and 26%, respectively).
178 | | January - June 2025 | ||||||
Average Balance Sheet - Liabilities and Interest Expense
| Six months ended 30 June, | ||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||||||||||
(EUR million, except percentages) | ||||||||||||||||||||||||||
| Deposits from central banks and credit institutions | 144,288 | 4,053 | 5.62 | % | 152,314 | 4,880 | 6.41 | % | ||||||||||||||||||
| Domestic | 62,185 | 1,347 | 4.33 | % | 57,248 | 1,468 | 5.13 | % | ||||||||||||||||||
| International - Mature markets | 35,460 | 881 | 4.97 | % | 46,989 | 1,327 | 5.65 | % | ||||||||||||||||||
| International - Developing markets | 46,643 | 1,825 | 7.83 | % | 48,077 | 2,085 | 8.67 | % | ||||||||||||||||||
| Of which | ||||||||||||||||||||||||||
| Repurchase agreements | 67,879 | 2,258 | 6.65 | % | 57,666 | 2,259 | 7.83 | % | ||||||||||||||||||
| Domestic | 41,474 | 1,004 | 4.84 | % | 32,868 | 948 | 5.77 | % | ||||||||||||||||||
| International - Mature markets | 8,240 | 253 | 6.14 | % | 8,291 | 260 | 6.27 | % | ||||||||||||||||||
| International - Developing markets | 18,165 | 1,001 | 11.02 | % | 16,507 | 1,051 | 12.73 | % | ||||||||||||||||||
| Customer Deposits | 1,017,973 | 16,063 | 3.16 | % | 987,557 | 17,907 | 3.63 | % | ||||||||||||||||||
| Domestic | 349,563 | 2,094 | 1.20 | % | 310,990 | 2,400 | 1.54 | % | ||||||||||||||||||
| International - Mature markets | 470,902 | 6,948 | 2.95 | % | 473,111 | 8,226 | 3.48 | % | ||||||||||||||||||
| International - Developing markets | 197,508 | 7,021 | 7.11 | % | 203,456 | 7,281 | 7.16 | % | ||||||||||||||||||
| Of which | ||||||||||||||||||||||||||
| Repurchase agreements | 99,878 | 3,849 | 7.71 | % | 78,576 | 4,025 | 10.24 | % | ||||||||||||||||||
| Domestic | 33,932 | 398 | 2.35 | % | 9,549 | 272 | 5.70 | % | ||||||||||||||||||
| International - Mature markets | 45,102 | 2,223 | 9.86 | % | 46,363 | 2,671 | 11.52 | % | ||||||||||||||||||
| International - Developing markets | 20,844 | 1,228 | 11.78 | % | 22,664 | 1,082 | 9.55 | % | ||||||||||||||||||
| Marketable debt securities (A) | 306,080 | 7,538 | 4.93 | % | 306,559 | 7,140 | 4.66 | % | ||||||||||||||||||
| Domestic | 137,921 | 2,557 | 3.71 | % | 147,481 | 2,641 | 3.58 | % | ||||||||||||||||||
| International - Mature markets | 125,197 | 2,632 | 4.20 | % | 115,438 | 2,568 | 4.45 | % | ||||||||||||||||||
| International - Developing markets | 42,962 | 2,349 | 10.94 | % | 43,640 | 1,931 | 8.85 | % | ||||||||||||||||||
| Of which | ||||||||||||||||||||||||||
| Commercial paper | 20,532 | 472 | 4.60 | % | 27,283 | 675 | 4.95 | % | ||||||||||||||||||
| Domestic | 12,164 | 259 | 4.26 | % | 18,739 | 417 | 4.45 | % | ||||||||||||||||||
| International - Mature markets | 6,736 | 138 | 4.10 | % | 6,905 | 166 | 4.81 | % | ||||||||||||||||||
| International - Developing markets | 1,632 | 75 | 9.19 | % | 1,639 | 92 | 11.23 | % | ||||||||||||||||||
| Other interest-bearing liabilities | 22,585 | 318 | 2.82 | % | 22,653 | 337 | 2.98 | % | ||||||||||||||||||
| Domestic | 17,495 | 243 | 2.78 | % | 16,936 | 243 | 2.87 | % | ||||||||||||||||||
| International - Mature markets | 3,653 | 8 | 0.44 | % | 3,690 | 10 | 0.54 | % | ||||||||||||||||||
| International - Developing markets | 1,437 | 67 | 9.32 | % | 2,027 | 84 | 8.29 | % | ||||||||||||||||||
| Expenses from hedging operations | 953 | 1,685 | ||||||||||||||||||||||||
| Domestic | 345 | 615 | ||||||||||||||||||||||||
| International - Mature markets | 546 | 712 | ||||||||||||||||||||||||
| International - Developing markets | 62 | 358 | ||||||||||||||||||||||||
| Other interest | 1,202 | 1,026 | ||||||||||||||||||||||||
| Domestic | 457 | 459 | ||||||||||||||||||||||||
| International - Mature markets | 197 | 153 | ||||||||||||||||||||||||
| International - Developing markets | 548 | 414 | ||||||||||||||||||||||||
| Total interest-bearing liabilities | 1,490,926 | 30,127 | 4.04 | % | 1,469,083 | 32,975 | 4.49 | % | ||||||||||||||||||
| January - June 2025 | | 179 | ||||||
| Six months ended 30 June, | ||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | Average Balance | Interest | Average Rate | Average Balance | Interest | Average Rate | ||||||||||||||||||||
(EUR million, except percentages) | ||||||||||||||||||||||||||
| Domestic | 567,164 | 7,043 | 2.48 | % | 532,655 | 7,826 | 2.94 | % | ||||||||||||||||||
| International - Mature markets | 635,212 | 11,212 | 3.53 | % | 639,228 | 12,996 | 4.07 | % | ||||||||||||||||||
| International - Developing markets | 288,550 | 11,872 | 8.23 | % | 297,200 | 12,153 | 8.18 | % | ||||||||||||||||||
| Other non-interest-bearing liabilities | 176,009 | 166,818 | ||||||||||||||||||||||||
| Non-Controlling interest | 8,765 | 8,490 | ||||||||||||||||||||||||
| Stockholders' Equity | 100,703 | 96,151 | ||||||||||||||||||||||||
| Liabilities from discontinued operations | 59,063 | 51,886 | ||||||||||||||||||||||||
| Total average liabilities and Stockholders' Equity | 1,835,466 | 30,127 | 1,792,428 | 32,975 | ||||||||||||||||||||||
Note: As of 30 June 2025 and 30 June 2024, Total average liabilities attributed to international activities accounted for 62% and 64%, respectively, of the Group's Total average liabilities. (International - Mature markets accounted for 39% and 40%, respectively, and International - Developing markets accounted for 23% and 24%, respectively).
(A) Does not include contingently convertible preference shares and perpetual subordinated notes because they do not accrue interests. We include them under “Other non-interest-bearing liabilities”.
Changes in Interest Income / (Charges)—Volume and Rate Analysis
The following tables include, by domicile of the Group entity at which the relevant asset or liability is accounted for, changes in our net interest income attributable to changes in average volume and changes in average rate for the first six months of 2025 compared to the same period of 2024. We have calculated volume variances based on changes in average balances over the period and rate variances based on changes in interest rates on average interest-earning assets and average interest-bearing liabilities, as applicable, over the period. You should read the following tables and the footnotes thereto in light of our observations noted in the preceding sub-section entitled '—Average Balance Sheets and Interest Rates'.
180 | | January - June 2025 | ||||||
Volume and Rate Analysis
| Six months ended 30 June | |||||||||||
| 2025 / 2024 | |||||||||||
| Increase (Decrease) due to changes in | |||||||||||
| INTEREST INCOME | Volume (1) | Rate (2) | Net Change | ||||||||
| (EUR million) | |||||||||||
| Cash balances at central banks and other deposits on demand, and loans and advances to central banks and credit institutions | (55) | (1,499) | (1,554) | ||||||||
| Domestic | 158 | (769) | (611) | ||||||||
| International - Mature markets | (187) | (449) | (636) | ||||||||
| International - Developing markets | (26) | (281) | (307) | ||||||||
| Of which | |||||||||||
| Reverse repurchase agreements | 79 | (425) | (346) | ||||||||
| Domestic | 81 | (154) | (73) | ||||||||
| International - Mature markets | 6 | (53) | (47) | ||||||||
| International - Developing markets | (8) | (218) | (226) | ||||||||
| Loans and advances to customers | (232) | (1,469) | (1,701) | ||||||||
| Domestic | 77 | (618) | (541) | ||||||||
| International - Mature markets | 307 | (669) | (362) | ||||||||
| International - Developing markets | (616) | (182) | (798) | ||||||||
| Of which | |||||||||||
| Reverse repurchase agreements | 692 | (892) | (200) | ||||||||
| Domestic | (9) | (30) | (39) | ||||||||
| International - Mature markets | 674 | (830) | (156) | ||||||||
| International - Developing markets | 27 | (32) | (5) | ||||||||
| Debt securities | 425 | (132) | 293 | ||||||||
| Domestic | 448 | (360) | 88 | ||||||||
| International - Mature markets | 206 | 30 | 236 | ||||||||
| International - Developing markets | (229) | 198 | (31) | ||||||||
| Income from hedging operations | (651) | — | (651) | ||||||||
| Domestic | 159 | — | 159 | ||||||||
| International - Mature markets | (555) | — | (555) | ||||||||
| International - Developing markets | (255) | — | (255) | ||||||||
| Other interest | (80) | — | (80) | ||||||||
| Domestic | (84) | — | (84) | ||||||||
| International - Mature markets | (4) | — | (4) | ||||||||
| International - Developing markets | 8 | — | 8 | ||||||||
| Total Interest-earning assets | (593) | (3,100) | (3,693) | ||||||||
| Domestic | 758 | (1,747) | (989) | ||||||||
| International - Mature markets | (233) | (1,088) | (1,321) | ||||||||
| International - Developing markets | (1,118) | (265) | (1,383) | ||||||||
| January - June 2025 | | 181 | ||||||
| Six months ended 30 June, | |||||||||||
| 2025 / 2024 | |||||||||||
| Increase (Decrease) due to changes in | |||||||||||
| INTEREST CHARGES | Volume (1) | Rate (2) | Net Change | ||||||||
| (EUR million) | |||||||||||
| Deposits from central banks and credit institutions | (240) | (587) | (827) | ||||||||
| Domestic | 120 | (241) | (121) | ||||||||
| International - Mature markets | (299) | (147) | (446) | ||||||||
| International - Developing markets | (61) | (199) | (260) | ||||||||
| Of which | |||||||||||
| Repurchase agreements | 321 | (322) | (1) | ||||||||
| Domestic | 224 | (168) | 56 | ||||||||
| International - Mature markets | (2) | (5) | (7) | ||||||||
| International - Developing markets | 99 | (149) | (50) | ||||||||
| Customer Deposits | 24 | (1,868) | (1,844) | ||||||||
| Domestic | 274 | (580) | (306) | ||||||||
| International - Mature markets | (38) | (1,240) | (1,278) | ||||||||
| International - Developing markets | (212) | (48) | (260) | ||||||||
| Of which | |||||||||||
| Repurchase agreements | 199 | (375) | (176) | ||||||||
| Domestic | 362 | (236) | 126 | ||||||||
| International - Mature markets | (71) | (377) | (448) | ||||||||
| International - Developing markets | (92) | 238 | 146 | ||||||||
| Marketable debt securities | 5 | 393 | 398 | ||||||||
| Domestic | (175) | 91 | (84) | ||||||||
| International - Mature markets | 210 | (146) | 64 | ||||||||
| International - Developing markets | (30) | 448 | 418 | ||||||||
| Of which | |||||||||||
| Commercial paper | (145) | (58) | (203) | ||||||||
| Domestic | (141) | (17) | (158) | ||||||||
| International - Mature markets | (4) | (24) | (28) | ||||||||
| International - Developing markets | 0 | (17) | (17) | ||||||||
| Other interest-bearing liabilities | (19) | 0 | (19) | ||||||||
| Domestic | 8 | (8) | 0 | ||||||||
| International - Mature markets | 0 | (2) | (2) | ||||||||
| International - Developing markets | (27) | 10 | (17) | ||||||||
| Expenses from hedging operations | (732) | — | (732) | ||||||||
| Domestic | (270) | — | (270) | ||||||||
| International - Mature markets | (166) | — | (166) | ||||||||
| International - Developing markets | (296) | — | (296) | ||||||||
| Other interest | 176 | — | 176 | ||||||||
| Domestic | (2) | — | (2) | ||||||||
| International - Mature markets | 44 | — | 44 | ||||||||
| International - Developing markets | 134 | — | 134 | ||||||||
| Total interest-bearing liabilities | (786) | (2,062) | (2,848) | ||||||||
| Domestic | (45) | (738) | (783) | ||||||||
| International - Mature markets | (249) | (1,535) | (1,784) | ||||||||
| International - Developing markets | (492) | 211 | (281) | ||||||||
182 | | January - June 2025 | ||||||
(1) We calculate the volume variance as the result of the average interest rate of the earlier period multiplied by the difference between the average balances of both periods.
(2) We calculate the rate variance as the result of the average balance of the earlier period multiplied by the difference between the average interest rates of both periods.
Assets
Interest-earning Assets—Yield Spread
The following table analyses our average interest-earning assets, interest and similar income and net interest income by domicile of the Group entity at which they are accounted for. Furthermore, it shows gross yields, net yields and yield spreads for each of the periods indicated. You should read this table and the footnotes thereto in light of our observations noted in the preceding sub-section entitled '—Average Balance Sheets and Interest Rates', and the footnotes thereto.
| Six months ended 30 June | ||||||||
| 2025 | 2024 | |||||||
| (EUR million, except percentages) | ||||||||
| Average interest-earning assets | 1,578,031 | 1,541,074 | ||||||
| Domestic | 496,387 | 460,838 | ||||||
| International - Mature markets | 745,971 | 731,426 | ||||||
| International - Developing markets | 335,673 | 348,810 | ||||||
| Interest and similar income | 51,338 | 55,031 | ||||||
| Domestic | 9,407 | 10,396 | ||||||
| International - Mature markets | 20,584 | 21,905 | ||||||
| International - Developing markets | 21,347 | 22,730 | ||||||
| Interest income / (charges) (A) | 21,211 | 22,056 | ||||||
| Domestic | 2,364 | 2,570 | ||||||
| International - Mature markets | 9,372 | 8,909 | ||||||
| International - Developing markets | 9,475 | 10,577 | ||||||
| Gross yield (B) (%) | 6.51 | 7.14 | ||||||
| Domestic | 3.79 | 4.51 | ||||||
| International - Mature markets | 5.52 | 5.99 | ||||||
| International - Developing markets | 12.72 | 13.03 | ||||||
| Net yield (C) (%) | 2.69 | 2.86 | ||||||
| Domestic | 0.95 | 1.12 | ||||||
| International - Mature markets | 2.51 | 2.44 | ||||||
| International - Developing markets | 5.65 | 6.06 | ||||||
| Yield spread (D) (%) | 2.47 | 2.65 | ||||||
| Domestic | 1.31 | 1.57 | ||||||
| International - Mature markets | 1.99 | 1.92 | ||||||
| International - Developing markets | 4.49 | 4.85 | ||||||
(A) Interest income / (charges) is the net amount of interest and similar income and interest expense and similar charges. See 'Income Statement' in the consolidated financial statements included in Part 1 of this report on Form 6-K. For a discussion of the changes in interest income / (charges) over the periods presented, see 'Part 1. Consolidated Director’s Report—Group Financial information—Income statement and balance sheet'.
(B) Gross yield is the quotient of interest income divided by average earning assets.
(C) Net yield is the quotient of net interest income divided by average earning assets.
(D) Yield spread is the difference between gross yield on earning assets and the average cost of interest-bearing liabilities.
| January - June 2025 | | 183 | ||||||
Interest-earning assets-composition
The following table shows, by domicile of the Group entity at which the relevant asset is accounted for, the percentage mix of our average interest-earning assets for the periods indicated. You should read this table in light of our observations noted in the preceding sub-section entitled '—Average Balance Sheets and Interest Rates', and the footnotes thereto.
| Six months ended 30 June | ||||||||
| 2025 | 2024 | |||||||
| Cash balances at central banks and other deposits on demand, and loans and advances to central banks and credit institutions (%) | 17.97 | 18.48 | ||||||
| Domestic | 6.99 | 6.71 | ||||||
| International - Mature markets | 7.06 | 7.72 | ||||||
| International - Developing markets | 3.92 | 4.05 | ||||||
| Loans and advances to customers (%) | 64.59 | 65.79 | ||||||
| Domestic | 17.09 | 17.28 | ||||||
| International - Mature markets | 35.65 | 35.84 | ||||||
| International - Developing markets | 11.85 | 12.67 | ||||||
| Debt securities (%) | 17.44 | 15.73 | ||||||
| Domestic | 7.38 | 5.91 | ||||||
| International - Mature markets | 4.55 | 3.89 | ||||||
| International - Developing markets | 5.51 | 5.93 | ||||||
184 | | January - June 2025 | ||||||
5.2. Other statistical disclosure requirements
Credit Ratios
The following table sets out the impairment losses to total loans outstanding ratio and the net charge-offs to average loans outstanding ratios for the periods ended 31 December 2024, 2023 and 2022 and 30 June 2025 and 2024 (see note 5 to our interim consolidated financial statements in Part 1 of this report and note 10 to our consolidated financial statements for the year ended 31 December 2024 included in Part 1 of our 2024 Form 20-F):
| 31 December | Six Months Ended 30 June | ||||||||||||||||||||||||||||
| 2024 | 2023 | 2022 | 2025 | 2024 | |||||||||||||||||||||||||
| (EUR million, except percentages) | (EUR million, except percentages) | ||||||||||||||||||||||||||||
| Impairment losses to total loans outstanding | 2.06 | % | 2.15 | % | 2.14 | % | 2.02 | % | 2.08 | % | |||||||||||||||||||
| Allowances for credit losses | 22,125 | 22,788 | 22,684 | 20,810 | 22,625 | ||||||||||||||||||||||||
| Total loans outstanding | 1,076,194 | 1,059,137 | 1,058,688 | 1,031,537 | 1,088,220 | ||||||||||||||||||||||||
| Net charge-offs during the period to average loans outstanding: | |||||||||||||||||||||||||||||
| Commercial credit | 0.31 | % | 0.28 | % | 0.38 | % | 0.40 | % | 0.31 | % | |||||||||||||||||||
| Net charge-offs during the period | 153 | 141 | 197 | 98 | 75 | ||||||||||||||||||||||||
| Average loans outstanding | 48,996 | 49,673 | 51,535 | 48,426 | 48,888 | ||||||||||||||||||||||||
| Secured loans | 0.60 | % | 0.63 | % | 0.85 | % | 0.53 | % | 0.56 | % | |||||||||||||||||||
| Net charge-offs during the period | 3,446 | 3,652 | 4,990 | 1,508 | 1,608 | ||||||||||||||||||||||||
| Average loans outstanding | 576,086 | 582,007 | 583,899 | 566,742 | 576,787 | ||||||||||||||||||||||||
| Reverse repurchase agreements | n/a | n/a | n/a | n/a | n/a | ||||||||||||||||||||||||
| Net charge-offs during the period | n/a | n/a | n/a | n/a | n/a | ||||||||||||||||||||||||
| Average loans outstanding | 61,793 | 46,382 | 43,505 | 67,893 | 54,563 | ||||||||||||||||||||||||
| Other term loans | 2.04 | % | 2.21 | % | 1.43 | % | 2.05 | % | 1.98 | % | |||||||||||||||||||
| Net charge-offs during the period | 6,347 | 6,730 | 4,308 | 3,119 | 3,085 | ||||||||||||||||||||||||
| Average loans outstanding | 311,238 | 304,776 | 301,252 | 304,537 | 311,993 | ||||||||||||||||||||||||
| Finance leases | 0.28 | % | 0.11 | % | 0.31 | % | 0.18 | % | 0.24 | % | |||||||||||||||||||
| Net charge-offs during the period | 111 | 44 | 125 | 37 | 48 | ||||||||||||||||||||||||
| Average loans outstanding | 40,224 | 38,764 | 39,829 | 40,281 | 39,734 | ||||||||||||||||||||||||
| Receivables on demand | 0.75 | % | 1.49 | % | 1.73 | % | 3.24 | % | 0.81 | % | |||||||||||||||||||
| Net charge-offs during the period | 93 | 196 | 207 | 194 | 56 | ||||||||||||||||||||||||
| Average loans outstanding | 12,394 | 13,132 | 11,964 | 11,983 | 13,751 | ||||||||||||||||||||||||
| Credit card receivables | 5.81 | % | 6.01 | % | 4.12 | % | 7.44 | % | 6.06 | % | |||||||||||||||||||
| Net charge-offs during the period | 1,457 | 1,492 | 949 | 979 | 764 | ||||||||||||||||||||||||
| Average loans outstanding | 25,090 | 24,832 | 23,039 | 26,334 | 25,193 | ||||||||||||||||||||||||
| Total loans | 1.08 | % | 1.16 | % | 1.02 | % | 1.11 | % | 1.05 | % | |||||||||||||||||||
| Net charge-offs during the period | 11,607 | 12,255 | 10,776 | 5,935 | 5,636 | ||||||||||||||||||||||||
| Average loans outstanding | 1,075,821 | 1,059,566 | 1,055,023 | 1,066,196 | 1,070,909 | ||||||||||||||||||||||||
For the purpose of calculating the net charge-offs during the period to average loans outstanding ratio, net charge-offs consist of charge-offs against credit loss allowance less recoveries of loans previously charged-off and loans outstanding refer to gross loans and advances to customers. Recoveries of loans previously charged-off referred to our businesses subject to the Poland disposal are immaterial and have no impact or have an immaterial impact on the above credit ratios. For that reason, previous periods have not been adjusted to reflect the impact of the Poland sale. Reverse repurchase agreements are collateralized and therefore cannot be charged-off. Net charge-offs to average loans outstanding ratios at 30 June 2025 and 30 June 2024 reflect year-to-date net charge-offs annualized.
| January - June 2025 | | 185 | ||||||
Credit impaired balances ratios
The following table shows the total amount of our computable credit risk, our credit impaired loans and contingent liabilities, our allowances for credit impaired balances, our net loans and contingent liabilities charged-off, the NPL ratio, the coverage ratio and the net charge-offs to computable credit risk ratio at the dates indicated:
| Year Ended 31 December | Six Months Ended 30 June | ||||||||||||||||||||||||||||
| 2024 | 2023 | 2022 | 2025 | 2024 | |||||||||||||||||||||||||
| (EUR million, except percentages) | |||||||||||||||||||||||||||||
| Computable credit risk (A) | 1,157,274 | 1,133,898 | 1,124,121 | 1,148,243 | 1,163,654 | ||||||||||||||||||||||||
| Credit impaired balances | 35,265 | 35,620 | 34,673 | 33,395 | 35,091 | ||||||||||||||||||||||||
| Allowances for credit impaired balances | 22,835 | 23,490 | 23,418 | 22,441 | 23,323 | ||||||||||||||||||||||||
| Net loans charged-off | 11,607 | 12,255 | 10,776 | 6,006 | 5,636 | ||||||||||||||||||||||||
| Ratios: (%) | |||||||||||||||||||||||||||||
| NPL ratio (B) | 3.05 | 3.14 | 3.08 | 2.91 | 3.02 | ||||||||||||||||||||||||
| Coverage ratio (C) | 65 | 66 | 68 | 67 | 66 | ||||||||||||||||||||||||
| Net loans charged-off to computable credit risk (D) | 1.00 | 1.08 | 0.96 | 1.05 | 0.97 | ||||||||||||||||||||||||
Note: Credit impaired balances ratios are prepared for management purposes and therefore include the assets and results associated with the businesses subject to the Poland disposal.
(A) Computable credit risk is the sum of the face amounts of loans and advances to customers, customer guarantees and customer commitments granted, including those that are credit impaired, and excluding country risk.
(B) Credit impaired balances (credit impaired loans and advances to customers, customer guarantees and customer commitments granted) to computable credit risk.
(C) Allowances for credit impaired balances as a percentage of credit impaired balances.
(D) Ratios at 30 June 2025 and 30 June 2024 reflect year-to-date net charge-offs annualized. Ratios at year end reflect full year net charge-offs.
186 | | January - June 2025 | ||||||
ITEM 6. TABULAR DISCLOSURE OF CONTRACTUAL OBLIGATIONS
The following table summarizes our contractual obligations by remaining maturity at 30 June 2025:
| Contractual obligations | More than | More than | |||||||||||||||||||||||||||||||||
| Less than | 1 year but | 3 years but | More than | ||||||||||||||||||||||||||||||||
| (EUR million) | 1 year | less than 3 years | less than 5 years | 5 years | Total | ||||||||||||||||||||||||||||||
| Deposits from credit institutions (A) | 75,886 | 19,256 | 6,106 | 7,062 | 108,310 | ||||||||||||||||||||||||||||||
| Customer deposits (A) | 899,461 | 24,312 | 14,055 | 7,905 | 945,733 | ||||||||||||||||||||||||||||||
| Marketable debt securities (A) | 79,428 | 95,499 | 57,164 | 70,201 | 302,292 | ||||||||||||||||||||||||||||||
| Liabilities under insurance contracts | 3,371 | 4,314 | 2,544 | 8,114 | 18,343 | ||||||||||||||||||||||||||||||
| Lease obligations | 507 | 660 | 348 | 409 | 1,924 | ||||||||||||||||||||||||||||||
| Other long-term liabilities (B) | 1,562 | 2,886 | 3,448 | 5,386 | 13,282 | ||||||||||||||||||||||||||||||
| Contractual interest payment (C) | 18,269 | 13,100 | 14,457 | 41,177 | 87,003 | ||||||||||||||||||||||||||||||
| Total | 1,078,484 | 160,027 | 98,122 | 140,254 | 1,476,887 | ||||||||||||||||||||||||||||||
(A) Financial liabilities at amortized cost.
(B) Other long-term liabilities relate to pensions and similar obligations and include the estimated benefit payable for the next ten years.
(C) Calculated for the amortized cost portfolios of Deposits from credit institutions, Customer deposits and Marketable debt securities, based on average interest rates at 30 June 2025 for all maturities, and assuming that obligations maturing in more than five years have an average life of ten years.
The table above excludes the 'fixed payments' of our derivatives since derivative contracts executed by the Group apply close-out netting across all outstanding transactions, that is, these agreements provide for settlements to be made on a maturity or settlement date for the differences that arise, and as such, the obligation to be settled in the future is not fixed at the present date and is not determined by the fixed payments.
| January - June 2025 | | 187 | ||||||
ITEM 7. RISK DISCLOSURES
Higher-Risk Loans
Grupo Santander’s loan portfolio is focused mainly on retail banking with a medium-low risk profile, with a broadly diversified geographical footprint well-balanced between emerging and developed markets. In addition, our business diversification across customer segments is a key factor in maintaining resilience.
In the first half of 2025, Grupo Santander’s credit exposure was influenced by changes in the US trade policy, including tariffs, which affected both the US and Mexico, as well as by the deterioration of the macroeconomic environment in Brazil. While these factors did not significantly alter the overall risk profile of the Group’s loan portfolio, they prompted a reinforcement of our monitoring to ensure timely and effective risk management across the Group's various portfolios. Santander has implemented playbooks that are designed to provide guidance and enable proactive action as conditions evolve.
In addition to this enhanced oversight, some portfolios, due to their inherent business characteristics and risk profiles, require specific monitoring. This includes, for instance, the auto loans business in the US consumer subsidiary (SC USA), as well as other less material portfolios that are subject to explicit oversight under the Group’s risk appetite framework and applicable monitoring policies.
It should be noted that, at 30 June 2025, c. 65% of the Group’s net customer loans are secured, mostly by real estate collateral.
Mortgages to individuals represent approximately 33% of the Group’s loan portfolio, with low risk profile and low non-performing ratios, along with appropriate provisions coverage. Among other factors, this is due to the fact that these are mainly first residence mortgage loans, which are subject to a rigorous assessment of credit risk and affordability. The admission process evaluates the current and future payment capacity of the customer, evaluating if the client’s disposable income will be sufficient to meet the loans’ instalments even in a more stressed but feasible scenario.
Mortgage portfolios that may present higher risks, such as interest-only loans, flexible loans, loans with LTVs greater than 100%, or buy-to-let lending, are managed under stricter lending policies. However, these represent a low percentage of the Group’s portfolio and are continuously monitored to ensure close and effective risk control.
Changes in Practices
In the first half of 2025, Grupo Santander conducted its business in an environment marked by persistent uncertainty, driven by geopolitical tensions, the ongoing conflicts in the Middle East and Ukraine, and trade tensions, resulting primarily from the imposition and increase of tariffs, as well as the implementation of retaliatory responses.
Faced with this challenging scenario, Grupo Santander strengthened its monitoring of all risks, especially economic developments and the behaviour of its most exposed customers, with the objective of preemptively identifying any required measures. In general, the most significant impacts are related to tariffs, oil price fluctuations, and low economic growth in some countries, which could affect credit growth; new cyberattacks and other cybersecurity incidents, or greater dependence on third-party service providers, which could lead to an increase in operational risk; the evolution and potential impacts of the Swiss francs mortgage portfolio in Poland; and the commercial real estate portfolio, particularly the office segment, which has been impacted by persistently lower demand as a result of structural and lingering pandemic-related changes, primarily in the US market.
Furthermore, due to the upcoming implementation of regulatory requirements, Santander may undertake a reassessment of its disclosures regarding risk management that may arise from the Group's relationships with end-users, employees, and suppliers.
Other
Grupo Santander's exposure to complex structured instruments and assets is very limited; this is a reflection of our robust risk culture and prudent risk management.
Santander uses credit derivatives to cover loans and to serve our customer needs regarding their trading activities in financial markets. Trading volume is small in terms of our notional value (0.6% of total counterparty risk notional value as of 30 June 2025) and is subject to a solid set of internal controls and procedures to minimize operational risk.
Exposures related to complex structured assets
We have a very limited exposure to complex structured assets. See 'Quantitative Analysis About Market Risk' below.
Quantitative Analysis About Market Risk
A. Activities subject to market risk and types of market risk
Activities exposed to market risk encompass transactions where risk is assumed as a consequence of potential changes in interest rates, inflation rates, exchange rates, stock prices, credit spreads, commodity prices, volatility and other market factors, the liquidity risk from our products and markets, and the balance sheet liquidity risk. Therefore, they include trading risks and structural risks.
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•Interest rate risk arises from changes in interest rates that could adversely affect the value of a financial instrument, a portfolio or the Group as a whole. It can affect loans, deposits, debt securities, most assets and liabilities held for trading and derivatives.
•Inflation rate risk originates from changes in inflation rates that could adversely affect the value of a financial instrument, a portfolio or the Group as a whole. It can affect instruments such as loans, debt securities and derivatives, where the returns are linked to future inflation values or a change in the current rate.
•Exchange rate risk is the possibility of loss in the value of a position not denominated in the base currency to shifts in exchange rates. A long or open position in a foreign currency may produce a loss if it depreciates against the base currency. Exposures affected by this risk include non-euro currencies investments in subsidiaries and transactions in foreign currency.
•Equity risk is the possibility of loss from open positions in equities to adverse movements in their market prices or expectations about future dividends. This affects positions in shares, stock market indices, convertible bonds and derivatives with shares as the underlying asset (put, call, equity swaps, etc.).
•Credit spread risk is the possibility of loss from open positions in fixed income securities or credit derivatives to adverse movements in credit spread curves or recovery rates associated with specific issuers and types of debt. The spread is the yield difference between financial instruments with a quoted margin over other benchmark instruments, mainly the internal rate of return (IRR) of government bonds and interbank interest rates.
•Commodity price risk is the possibility of loss from adverse movements in commodity prices. Our exposure to this risk is minor and stems mainly from commodity derivatives.
•Volatility risk is the possibility of loss caused by adverse movements in the volatility of interest rates, exchange rates, shares, credit spreads and other factors affecting the value of our portfolio. It is inherent to all financial instruments whose value is affected by volatility (especially options contracts).
These market risks can be partly or fully mitigated with derivatives such as options, futures, forwards and swaps. However, there are other types of market risks that require more complex hedging:
•Correlation risk is the possibility of loss due to an adverse change in the relationship between risk factors (correlation) of the same type (e.g. two exchange rates) or different type (e.g. an interest rate and a commodity price).
•Market liquidity risk originates when Santander or a subsidiary cannot reverse or close a position without an impact on the market price or the transaction cost. Market liquidity risk can arise from a reduction in market makers or institutional investors, the execution of a large volume of transactions or market instability. It could also increase depending on how exposures are distributed among products and currencies.
•Pre-payment or cancellation risk originates when mortgages, deposits and other on-balance-sheet instruments give holders the option to buy or sell them, altering future cash flows. Potential mismatches on the balance sheet pose a risk since cash flows may have to be reinvested at an interest rate that is potentially lower (assets) or higher (liabilities).
•Underwriting risk arises when an entity underwrites or places securities and other types of debt and assumes the risk of having to acquire issued securities partially if buyers have not taken them up.
In addition to the above market risks, balance sheet liquidity risk (unlike market liquidity risk) is the possibility of meeting payment obligations late or at an excessive cost. Losses may be caused by forced sales of assets or margin impacts due to the mismatch between expected cash inflows and outflows.
On the other hand, pension and actuarial risks also depend on shifts in market factors. Further details are provided in this chapter.
Finally, in recent years there has been an increased focus on climate and environmental risks, which arise from the possibility that changes in climate may adversely affect the value of a financial instrument, a portfolio or the Group as a whole. Changes in climate include both extreme weather scenarios as well as gradual climate change and other situations where there is environmental degradation. This risk may have an impact both on financial instruments value or portfolios and on Santander's liquidity. The Group measures this risk through stress scenarios for both market and liquidity risk.
We aim to comply with the Basel Committee’s Fundamental Review of the Trading Book, and the EBA's Guidelines on the management of interest rate risk arising from non-trading book activities. Through several projects, we aim to provide risk managers and control teams with the best tools to manage market risks under the right governance framework for the models we use, to report risk metrics, and help satisfy requirements on these risks.
B. Trading market risk management
Management limits and control system
The market risk function daily monitoring makes sure market risk positions remain within approved limits. It assesses the performance of, and major changes in, market risk metrics, and distributes regular reports to senior management and other internal and external stakeholders so market risk activities can be properly monitored.
The market risk limits are established based on different metrics and are intended to cover all activities subject to market risk from many perspectives, applying a prudent approach. The main ones are:
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• Value at Risk (VaR) and Stressed VaR limits
• Limits of equivalent and/or nominal positions
• Interest rate sensitivity limits
• Vega limits
• Delivery risk limits for short positions in securities (fixed income and securities)
• Limits to constrain the volume of effective losses or protect results generated during the period:
• Loss trigger
• Stop loss
• Credit limits:
• Total exposure limit
• Jump to default limit by issuer
• Others
• Limits for origination transactions
Those general limits include sub-limits that make the structure granular enough to control market risks from Santander's trading operations. We monitor subsidiaries' positions daily, checking changes in portfolios and at trading desks in order to detect events that may necessitate immediate mitigation.
The Group establishes global approval and control limits, global approval limits with local control, and local approval and local control limits. They are requested by each subsidiary's business manager in consideration of particular circumstances of the business, budgetary targets and the risk/reward ratio. Limits are then approved by risk bodies according to internal governance processes.
Subsidiaries must comply with the approved limits. On the day a limit breach occurs, subsidiary business managers must provide a written explanation with an action plan and corrective measures, such as reducing the position within the limits or formulating a strategy that justifies raising limits.
Methodologies
a) Value at Risk (VaR)
Value at Risk (VaR), our standard methodology for managing and controlling market risk, measures maximum expected loss with a certain confidence level over a given time.
For standard historical simulation, the confidence level is 99% and the time horizon is one day. We also make statistical adjustments efficiently to incorporate recent developments affecting our levels of risk. Our time frame is two years or at least 520 days from the reference date of the VaR calculation. We report the higher of two VaR figures we calculate daily. One applies an exponential decay factor that allocates less weight to the oldest observations; the other has the same weight for all observations.
We also simultaneously calculate Value at Earnings (VaE). It measures the maximum potential gain with a certain level of confidence and specific time frame under the same methodology for VaR.
VaR by historic simulation has many advantages as a risk metric. It states a portfolio's market risk in a single figure according to market movements, without assumptions about functions, forms or correlations between market factors.
However, the VaR metric has some limitations, regardless of the methodology to calculate it. In particular:
• As VaR calculation has a certain confidence level, it does not indicate the levels of possible losses beyond it.
• The liquidity horizon of some products in the portfolio is longer than that of the VaR model.
• VaR is a static measure of risk subject to significant (albeit unlikely) changes in the following day.
Historical simulation methodology also has limitations:
• High sensitivity to time frame used;
• Inability to capture plausible high-impact events if these do not occur during the time frame used.
• Valuation parameters with no market input (such as correlations, dividend and recovery rates).
• Slow adjustment to new volatility and correlation, as the weighting of the newest and oldest data is the same.
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Using Stressed VaR and expected shortfall (ES) help overcome some of these limitations. We calculate VaR with exponential decay, apply conservative valuation adjustments, and regularly conduct analyses and backtesting to assess the accuracy of the VaR calculation model.
b) Stressed VaR (sVaR) and expected shortfall (ES)
We calculate sVaR daily for our main portfolios with the same methodology as for VaR, with these exceptions:
• We use a window of 260 observations (as opposed to 520 for VaR) over a continuous period of stress on a portfolio. For each portfolio, we review the history of a subset of selected market risk factors based on expert judgement and the most significant positions in the books.
• Unlike VaR, we obtain sVaR by using the percentile with uniform weighting, and not with the higher of the percentiles with exponential and uniform weightings.
To calculate the ES we estimate expected potential loss above the level obtained from VaR and assign uniform weights to all observations. Unlike VaR, ES has the advantage of capturing the risk of large losses with a low probability (tail risk) and being a sub-additive metric. According to the Basel Committee, an ES with a 97.5% confidence interval delivers a level of risk similar to VaR at a 99% confidence interval.
c) Scenario analysis
Santander's risk measures are based on normal market conditions, price stability, sufficient liquidity and other assumptions used in daily risk management and decision-making. However, it is possible that extreme movements and strong unforeseen changes will not be properly anticipated. Therefore, we run scenario analyses, which prove important to predict the outcome of a wide range of risks and estimate the capital needed to absorb any losses in case such unexpected events occur.
These stress scenarios are important to estimate future risk, overcome the limitations of models and historical data, support liquidity and capital plans, report on risk tolerance levels and develop risk reduction and contingency plans under stress conditions.
We regularly calculate and analyse stress scenarios for our subsidiaries with trading activities which include historical scenarios, hypothetical scenarios and reverse stress test scenarios.
d) Analysis of positions, sensitivities and results
Santander uses positions to quantify the market values of transactions in the portfolio, grouped by main risk factor and considering the delta value of any futures or options. We can express risk positions in our subsidiaries' base currency and in the currency used for standardized information. We monitor positions daily to detect incidents and correct them immediately.
Measurements of market risk sensitivity estimate the variation of an instrument or portfolio's market value to changes in a risk factor with analytical approximations given through partial derivatives or a complete revaluation of the portfolio.
The daily profit and loss (P&L) statement prepared by the market risk function is an excellent indicator of the impact of changes of financial variables on portfolios.
e) Derivatives activities and credit management
We run controls over derivative activities and credit management daily with specific measures due to their atypical nature. We control and monitor underlying asset's sensitivity to price movements (Delta and Gamma), volatility (Vega) and time (Theta). Also, we systematically review measurements such as sensitivity to the spread, jump-to-default and concentrations of positions by rating.
For credit risk in trading portfolios, we also calculate Incremental Risk Charge (IRC), an additional metric recommended by the Basel Committee and current regulations. IRC covers default risks and rating migrations not adequately captured in VaR through variations in credit spreads.
We apply this metric to government and corporate bonds, derivatives on bonds (forward, options, etc.) and credit derivatives (credit default swaps, asset backed securities, etc.). We calculate IRC using direct measurements of loss distribution tails at an appropriate percentile (99.9%), over a one-year horizon. We follow the Montecarlo methodology, applying one million simulations.
f) Credit Valuation Adjustment (CVA) and Debt Valuation Adjustment (DVA)
Santander calculates trading portfolio results with credit valuation adjustment (CVA) and debit valuation adjustment (DVA). The CVA is for over the-counter (OTC) derivatives and results from the risk associated with the credit exposure assumed with each counterparty.
The CVA for a particular counterparty is the total CVA for all its maturities. To calculate it, we consider inputs such as expected exposure, loss given default, probability of default and a discount factor curve.
DVA is similar to CVA but results from the risk our counterparties assume in OTC derivatives traded with us.
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C. Key metrics (Trading Market Risk)
Market volatility in the first half of 2025 was primarily driven by the potential adverse effect on global economic growth resulting from the new trade policies in the US and by geopolitical tensions stemming from the ongoing wars in Ukraine and the Middle East. In this challenging and uncertain environment, Santander’s trading risk profile remained low, in line with previous years, due to the fact that risks of trading activities arise mainly from activities with customers in non-complex instruments, concentrated in hedging of interest rate and exchange rate risks.
Value at Risk (VaR) analysis
During the first half of 2025, Santander continued its strategy of focusing its trading activity on customer business, minimising where possible, exposure to directional risk in net terms and maintaining its diversification by geography and risk factor.
Evolution of VaR for the first half of 2025.
EUR million. VaR at 99% over a one day horizon.
VaR during the first half of 2025 fluctuated between EUR 15.0 million and EUR 29.2 million, with an average VaR for the period of EUR 19.6 million and ending in June at EUR 15.6 million. Most of the time, daily VaR was above the average of the last three years, mainly due to the high volatility in markets this year.
The following histogram shows the distribution of risk in terms of VaR in the first six months of 2025. The accumulation of days with levels up to EUR 25.5 million (97%) is shown. Values higher than EUR 25.5 million (3%) largely occur in periods affected by temporary spikes in volatility or punctual increases of exposure, mainly in interest rates and exchange rates.
VaR Histogram
VaR at 99%, over a one-day horizon. Number of days (%) in each range for the first half of 2025.
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Risk by factor
The minimum, average, maximum and final values in VaR terms at 99% for the first six months of 2025 are displayed in the following table:
VaR statistics by risk factor
EUR million. VaR at 99%, with one day time horizon
| VaR (99%) | ||||||||||||||||||||||||||
| Minimum | Average | Maximum | Latest | |||||||||||||||||||||||
| Total trading | ||||||||||||||||||||||||||
| Total | 15.0 | 19.6 | 29.2 | 15.6 | ||||||||||||||||||||||
| Diversification effect | (11.1) | (25.3) | (59.3) | (21.1) | ||||||||||||||||||||||
| Interest rate | 14.7 | 18.5 | 23.0 | 15.8 | ||||||||||||||||||||||
| Equities | 3.3 | 7.5 | 10.8 | 3.3 | ||||||||||||||||||||||
| Exchange rate | 4.7 | 9.2 | 37.5 | 7.5 | ||||||||||||||||||||||
| Credit spread | 3.2 | 6.2 | 10.2 | 8.4 | ||||||||||||||||||||||
| Commodities | 0.2 | 3.5 | 7.0 | 1.7 | ||||||||||||||||||||||
| Europe | ||||||||||||||||||||||||||
| Total | 12.3 | 16.4 | 28.2 | 12.5 | ||||||||||||||||||||||
| Diversification effect | (10.8) | (20.8) | (32.4) | (21.6) | ||||||||||||||||||||||
| Interest rate | 11.7 | 14.6 | 19.2 | 14.7 | ||||||||||||||||||||||
| Equities | 3.8 | 7.6 | 11.0 | 3.9 | ||||||||||||||||||||||
| Exchange rate | 4.5 | 8.6 | 19.7 | 7.1 | ||||||||||||||||||||||
| Credit spread | 3.0 | 6.2 | 10.4 | 8.2 | ||||||||||||||||||||||
| Commodities | 0.1 | 0.2 | 0.3 | 0.2 | ||||||||||||||||||||||
| South America | ||||||||||||||||||||||||||
| Total | 5.6 | 8.9 | 16.5 | 7.8 | ||||||||||||||||||||||
| Diversification effect | (0.6) | (5.8) | (29.9) | (5.2) | ||||||||||||||||||||||
| Interest rate | 4.9 | 8.2 | 18.1 | 6.6 | ||||||||||||||||||||||
| Equities | 0.8 | 1.5 | 7.2 | 1.6 | ||||||||||||||||||||||
| Exchange rate | 0.4 | 1.5 | 12.9 | 1.9 | ||||||||||||||||||||||
| Credit Spread | 0.0 | 0.0 | 1.2 | 1.1 | ||||||||||||||||||||||
| Commodities | 0.1 | 3.5 | 7.0 | 1.8 | ||||||||||||||||||||||
| North America | ||||||||||||||||||||||||||
| Total | 4.3 | 6.4 | 8.9 | 4.4 | ||||||||||||||||||||||
| Diversification effect | (0.3) | (1.6) | (5.0) | (1.6) | ||||||||||||||||||||||
| Interest rate | 4.2 | 6.4 | 8.8 | 4.3 | ||||||||||||||||||||||
| Equities | 0.1 | 0.6 | 1.9 | 0.7 | ||||||||||||||||||||||
| Exchange rate | 0.3 | 1.0 | 3.2 | 1.0 | ||||||||||||||||||||||
| Credit Spread | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||||||||||||||||
| Commodities | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||||||||||||||||
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The average VaR in the first half of 2025, EUR 19.6 million, was higher than the average VaR in the first half of 2024, EUR 16.8 million, in all market risk factors mainly due to higher market volatility in the period.
VaR evolution by risk factor
EUR million. VaR at 99% with one day time horizon (15 day moving average)
Gauging and backtesting measures
Regulations dictate that the VaR model should accurately capture market risks. VaR uses statistical techniques under normal conditions. Therefore, for a certain confidence level and for a defined time horizon, the estimated maximum loss can differ from actual losses. Santander reviews and contrasts the VaR calculation model on a regular basis to verify its accuracy.
The market risk function runs tests such as internal backtesting, VaR contrast measures and hypothetical portfolio analysis for subsidiaries covered by the internal market risk model. For subsidiaries with an approved internal model, we also perform regulatory backtesting to count overshootings (when daily loss or profit exceeds VaR or VaE) affecting the calculation of market risk regulatory capital requirements.
Our backtesting assesses the general quality and effectiveness of the risk measurement model and compares the daily VaR/VaE obtained on D-1 with these P&Ls obtained on D:
•Economic P&L: is calculated on the basis of end-of-day mark-to-market or mark-to-model values. This test checks whether the VaR/VaE methodology used to measure and aggregate risk is appropriate.
•Actual P&L: is calculated based on the difference between the portfolio's end-of-day value and actual value at the end of the subsequent day. It includes the profit and loss stemming from intraday operations, minus fees, commissions, and net interest income. It is used to count regulatory overshootings.
•Hypothetical P&L: is calculated daily by comparing the portfolio's end-of-day value and its value at the end of subsequent day, assuming unchanged positions. It does not account for the time effect to be consistent with VaR. This backtesting helps us make sure portfolios are regularly subject to an intraday risk not reflected in closing positions and therefore, not reflected in VaR. We also use it to count regulatory overshootings.
•Theoretical P&L: is calculated with the market risk calculation engine, without intraday results, changes in portfolio positions or time (theta). We use it exclusively to test the quality of our internal VaR model.
We run regulatory backtesting on our subsidiaries every day. We also run internal (not regulatory) backtesting daily, weekly and monthly based on the granularity of a given portfolio level. The number (or proportion) of overshootings we register is one of the most intuitive indicators of a model's goodness of fit. We calculate regulatory backtesting for one year (250 days) and at a VaR confidence level of 99%.
In the last twelve months, for Hypothetical P&L backtesting and for the total portfolio, there were two overshootings in VaR at 99%, on 9 and 11 April, as a result of high volatility in markets mainly due to the uncertainty over the potential impact of the new trade policies in the US . There were no overshootings in VaE at 99%. The results are consistent with the assumptions specified in the VaR calculation model.
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Derivatives risk management
Our derivatives business primarily involves selling investment products and hedging risks for customers. Our risk management aims to keep open net risk as low as possible. Transactions include options on equities, fixed income and exchange rates, mainly in Spain, Brazil and the UK.
Risk of derivatives (in terms of VaR Vega at 99%, over a one-day horizon) moved in the first half of 2025 in a range between EUR 3.7 million and EUR 12.6 million, with an average value of EUR 7.5 million.
Santander's exposure to complex structured instruments and assets is very limited, this reflects our risk culture and prudent risk management. The Risk Appetite of the Group limits the total of level 3 assets and liabilities (those which fair value is calculated using significant inputs not observable in market data) to 5% of Group's total assets and liabilities measured at fair value. On the other hand, at the end of the first half of 2025, our exposures in hedge funds was EUR 51 million (all indirect), acting as counterparty in derivative transactions. We analyse the risk related to this type of counterparty on a case-by-case basis, setting collateralization ratios based on each fund's characteristics and assets.
Our policy on approving new derivatives transactions remains extremely prudent and conservative. It is closely monitored by senior management.
Scenario analysis
Various stress scenarios were calculated and analysed regularly in the first half of 2025 (at least monthly) for all the trading portfolios.
Worst-case scenario
This is a hypothetical scenario that considers the movements of risk factors and their respective volatilities without taking into account the potential interaction, correlation or compensation among such risk factors. The construction of these scenarios is based on the application of the market shocks (positive for an increase and negative for a decrease) defined in the new regulatory framework for the calculation of market risk capital requirements (Fundamental Review Trading Book, FRTB). Its aim is to analyse the risk profile and potential maximum losses of trading portfolios, identifying the most unfavourable scenario.
At the end of June 2025, the stress test revealed that the economic loss in trading portfolios would be EUR 335 million (market price) if the stress movements in the worst-case scenario materialized in the market. The loss would mainly affect North America (mostly in credit spread and in interest rate under scenarios of increases). In the case of Europe the loss would be mainly under a scenario of interest rate increases whilst in South America under a scenario of interest rate decreases.
Stress scenario: worst case. EUR million
| Interest rate | Equities | Exchange rate | Credit spread | Commodities | Total | ||||||||||||||||||||||||||||||||||||
| Total trading | (234.3) | 43.5 | (33.7) | (110.4) | 0.0 | (334.9) | |||||||||||||||||||||||||||||||||||
| Europe | (93.4) | 45.9 | (23.9) | (1.3) | 0.0 | (72.7) | |||||||||||||||||||||||||||||||||||
| North America | (68.6) | (0.4) | (2.6) | (109.1) | 0.0 | (180.7) | |||||||||||||||||||||||||||||||||||
| South America | (72.3) | (2.0) | (7.2) | 0.0 | 0.0 | (81.5) | |||||||||||||||||||||||||||||||||||
Other global stress test scenarios
‘Abrupt crisis’: an ad-hoc scenario with sharp market movements in all risk factors: rise in interest rate curves, sharp falls in stock markets, strong appreciation of USD against other currencies, increase in volatility and credit spreads and default of main debt and equity positions.
‘Subprime crisis’: historical scenario based on 2007-2008 events arising from the US subprime mortgage crisis. This financial crisis led to a sharp increase in volatility and a sharp reduction in liquidity in all financial markets worldwide. The worst 1-day and 10-day market shocks are identified for each market risk factor.
‘Forward Looking Scenario’: a plausible hypothetical scenario based on current portfolios and expert judgement regarding the short term expected movements in market risk factors that may negatively affect trading positions.
‘EBA adverse scenario’: hypothetical scenario based on the adverse macroeconomic scenario applied to all market risk factors, as proposed by the EBA to perform the 'EU wide stress test' exercise every two years.
'Covid-19 crisis': scenario based in the sharp movements in the financial markets as a result of the health crisis. Its calculation is based on the identification of the 10-day period with higher losses in the trading portfolio during the first half of 2020.
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Reverse stress test scenarios, which identify market variable shifts that can lead to a loss that will endanger our survival. They complement traditional stress scenarios and help signal business vulnerabilities, hidden risks and interactions between risk factors. They begin with a known stress result (such as a failure to achieve certain capital, liquidity or solvency ratios) and identify extreme scenarios.
D. Structural balance sheet risk management
System for controlling limits
Like with trading market risk, annual limits planning sets limits for balance sheet structural risks based on risk appetite.
The main limits we use are:
• Balance sheet structural interest rate risk:
• Limit on net interest income (NII) over a 1-year horizon.
• Limit on the sensitivity of the economic value of equity (EVE).
• Limit on the market value variations of ALCO portfolios under stress scenarios.
• Structural exchange rate risk:
• Limit on the potential impact of the net foreign currency permanent position in the Core Capital Ratio.
• Limit on the individual hedge required by each currency.
Financial Management must explain why limits or sub-limit breaches occur and provide action plans to correct them.
Methodologies
a) Structural interest rate risk
We analyse the potential impact of changes in interest rate levels on EVE and NII. Depending on the changes in rates, impacts will be different and therefore various subtypes of interest rate risk need to be monitored and managed, such as repricing, curve or basis risk, among others.
Based on the balance sheet interest rate position and the market situation and outlook, financial actions (such as transacting positions or setting interest rate for products we market) may be needed to achieve our desired risk profile.
The suite of metrics we use to monitor interest rate risks includes the sensitivity of NII and EVE to changes in interest rates:
- Net interest income (NII) sensitivity
NII is the difference between income from interest on assets and the cost of liabilities in the banking book over a typical one-to three-year horizon (one year being standard in Santander). NII sensitivity is the difference between the NII calculated under a selected scenario and the NII calculated under a base scenario. There can be as many NII sensitivities as scenarios. This metric helps identify short-term risk and it is complementary to EVE sensitivity. Scenarios of -100 basis points parallel changes and +100 basis points are considered, choosing the worst one (hereinafter figures show the result under these scenarios).
-Economic value of equity (EVE) sensitivity
EVE is the difference between the net current value of assets and the net current value of outstanding liabilities in the banking book at a certain point in time. EVE sensitivity is the difference in EVE calculated under a selected scenario and under a base scenario. There can be as many EVE sensitivities as scenarios considered. This metric helps identify long-term risk and it is complementary to NII sensitivity. Scenarios of -100 basis points parallel changes and +100 basis points are considered, choosing the worst one (hereinafter figures show the result under these scenarios).
b) Interest rate models
Interest rate risk metrics consider the behaviour of financial products under stressed scenarios where uncertainty is common and contractual terms may not be met. We have methodologies that help to explain products' behaviour. Key interest rate risk models are:
-Treatment of liabilities without stated maturity
Our model uses variables such as stable and unstable volumes, the rate of settlement over time and the difference between customer rates and market rates to model non-maturity account balances.
- Pre-payment treatment for certain assets
Pre-payment risk mainly affects fixed-rate mortgages in subsidiaries where contractual rates are low relative to market levels. We model this risk and include it in risk appetite metrics.
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c) Structural foreign exchange rate risk/hedging of results
We monitor these activities daily via position measurements, VaR and results.
d) Structural equity risk
We monitor these activities monthly via position measurements, VaR and results.
E. Structural balance sheet risks key metrics
Consistent with previous years, the market risk profile of Santander's balance sheet remained moderated in the first half of 2025 in terms of asset, shareholders’ equity and net interest income volumes.
Each subsidiary's finance division manages its interest rate risk from commercial banking and is responsible for managing structural risk caused by fluctuating interest rates.
We use statistical models to measure interest rate risk and different strategies to manage structural risk with interest rate instruments, such as fixed income bond portfolios and derivative instruments to keep the risk profile within risk appetite.
Structural interest rate risk
Europe
At the end of June, the EVE sensitivity of our balance sheets in Europe was positive to interest rate decreases except in Spain, which was negative to the same scenario. In the case of NII, the sensitivity of our balance sheets in Santander Spain, Santander UK, Santander Poland and Santander Portugal, was positive to interest rate increases.
Exposure levels in all countries was moderate in relation to the annual budget and capital levels.
At June 2025, considering the scenarios previously mentioned, the most significant risk of NII sensitivity was in the Euro interest rate curve at EUR 897 million, followed by the British pound at EUR 133 million, the Polish zloty at EUR 40 million and the US dollar at EUR 38 million, all relating to the risk of rate decreases.
Net interest income (NII) sensitivity
% of the total
Others: Portugal and SCF.
The most significant risk in EVE was in the Euro interest rate curve at EUR 1,322 million, followed by the British pound at EUR 541 million, the Polish zloty at EUR 281 million and the US dollar at EUR 66 million, relating to the risk of rate decreases in the case of Euro and US dollar and to the risk of rate increases in the case of the British pound and the Polish zloty .
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Economic value of equity (EVE) sensitivity
% of the total
Others: Portugal, Poland and SCF.
South America
At the end of June, the EVE in our South American balance sheets was positioned for interest rate decreases. In the case of NII, Brazil was positioned for interest rate decreases whilst our other core South American balance sheets (Chile and Argentina) were positioned for interest rate increases. In the first half of 2025, exposure levels in all countries was moderate in relation to the annual budget and capital levels.
At the end of June, the most significant risk to NII was located in Brazil (EUR 90 million) and Chile (EUR 13 million).
Net interest income (NII) sensitivity
% of the total
Others: Argentina, Peru and Uruguay.
The most significant risk to the EVE, was also in Brazil (EUR 261 million) and Chile (EUR 243 million).
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Economic value of equity (EVE) sensitivity
% of the total
Others: Argentina, Peru and Uruguay.
North America
At the end of June, the NII of our North American balance sheets showed positive sensitivity to interest rate increases in the case of the US and negative sensitivity to the same scenario in the case of Mexico. In the case of EVE, negative sensitivities to interest rate increases were shown in both balance sheets.
In the first half of 2025, exposure levels in all countries were moderate in relation to the annual budget and capital levels.
At the end of June, the most significant risk to NII was mainly in the US (EUR 94 million).
Net interest income (NII) sensitivity
% of the total
The most significant risk to the EVE was also in the US (EUR 678 million).
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Economic value of equity (EVE) sensitivity
% of the total
Structural foreign exchange rate risk/hedging of results
Our structural exchange rate risk is driven by exposures in foreign currencies related to permanent financial investments, their results and related hedges.
Our dynamic management of this risk seeks to limit the impact on the core capital ratio from foreign exchange rate movements. At the end of June 2025, the largest exposures of permanent investments (with their potential impact on equity) were (in order), in US dollars, UK pounds sterling, Brazilian reais, Mexican pesos, Polish zlotys and Chilean pesos. We hedge some of these positions (which are permanent in nature) with foreign exchange-rate derivatives.
The Financial division is responsible for foreign exchange rate risk management, hedging expected results and dividends in subsidiaries where the base currency is not the euro.
Structural equity risk
We hold equity positions in its banking book as equity instruments or equity stakes depending on the percentage owned or control.
We diversified the equity portfolio in the banking book at the end of June 2025 between securities in Spain, China, Morocco, Poland and other countries. Most of the portfolio invests in the finance and insurance industries, and also include real estate.
Structural equity positions have market risk exposure. We calculate VaR for these positions with market price data series or proxies. By the end of June 2025, the VaR at 99% over a one-day time horizon was EUR 162 million (EUR 141 and EUR 171 million at the end of 2024 and 2023, respectively).
F. Pension and actuarial risks
Pension risk
Santander assumes the financial, market, credit and liquidity risks in the assets and investments of defined benefit employee pension funds, as well as the actuarial risks from pension obligations. Our main goal in the pension risk control and management is to identify, measure, monitor, mitigate and disclose all sources of pension risk.
We annually estimate combined losses in assets and liabilities under a stress scenario that includes changes in interest rates, exchange rates, inflation, stock markets, real estate prices and credit spread.
Actuarial risk
Actuarial risk stems from biometric changes in the life expectancy of defined benefit pension scheme beneficiaries; from life insurance holders; unforeseen non-life insurance payments; and unexpected changes in holders' behaviour when filing claims covered in insurance contracts.
We distinguish these actuarial risks:
Life liability risk is the risk of loss if fluctuations in risk factors changes the value of pension liabilities:
200 | | January - June 2025 | ||||||
•Mortality/longevity risk: risk of loss in variations in insured parties' estimated probability of death/survival parties changes the value of liabilities.
•Morbidity risk: risk of loss if insured parties' estimated probability of disability/incapacity changes the value of liabilities.
•Surrender/lapse risk: risk of loss caused by changes in the value of liabilities because of the early termination or changes in policyholders' rights in regard to surrender, extraordinary contributions and/or paid up options.
•Expense risk: risk of loss if an adverse deviation in expected expenses changes the value of liabilities.
•Catastrophe risk: losses if catastrophic events increase pension liabilities.
Non-life liability risk is the risk of losses from changes in the value of Santander's non-life benefit liabilities with employees, caused by fluctuations in related risk factors:
•Premium risk: loss from insufficient premiums to pay for claims that might be made in the future.
•Reserve risk: loss from insufficient reserves for unsettled claims, including related costs.
•Catastrophe risk: losses if catastrophic events increase non-life liabilities.
G. Management of structural liquidity
Structural liquidity management aims to finance the Group’s recurring activity in optimum conditions of maturity and cost and avoid assuming undesired liquidity risks.
Given the retail nature of the Group, commercial branches have continued taking deposits following the selective financing strategy of the Group considering their costs.
Notwithstanding the aforementioned, the different Group companies have maintained frequent issuance activity in the different wholesale funding markets during the year in order to continue strengthening their liquidity position and presence in the markets, taking advantage of favourable market conditions. The Group issued in the first half of 2025 EUR 23,638 million of medium- and long-term issues, of which EUR 11,600 million was senior debt, EUR 4,631 million was covered bonds and EUR 7,407 million were TLAC (Total Loss Absorbing Capacity) eligible instruments of which EUR 7,058 million was senior non-preferred and EUR 349 million was subordinated debt. Maturities of medium- and long-term debt amounted to EUR 20,142 million in the first half of 2025, of which EUR 11,187 million was senior debt, EUR 3,571 million was covered bonds, EUR 3,722 million was senior non-preferred, EUR 1,475 million was subordinated debt and EUR 187 million was additional Tier 1. Additionally, securitizations placed in the market amounted to EUR 12,200 million while maturities followed a similar pattern.
In short, all these actions have contributed to strengthen the Group’s balance sheet and capital base and helped to maintain an appropriate liquidity position.
The main aspects in relation to structural management of liquidity during the first half of 2025 were:
•Adequate position of structural liquidity. We are essentially a retail bank. Therefore, customer deposits are the main source of funds in our financing structure. These deposits, together with capital and similar instruments, enable us to address most of the Group’s liquidity needs.
Diversification of markets and instruments to obtain liquidity. We have an active presence in several wholesale markets, across the different countries where the Group operates. This strategy limits our dependence on specific markets and allows us to maintain a comfortable capacity of recourse to the markets.
•As of 30 June 2025, the balance sheet of the Group was solid, as befits the Group’s retail nature. Lending, which accounted for around 68% of net assets, was fully financed by customer deposits and medium and long-term funding. The Group has an adequate structure of medium and long-term issuances, well diversified by products (including, senior debt, senior non-preferred debt, covered bond, subordinated debt and additional Tier 1) with a moderately conservative maturity (4.3 years as of 30 June 2025). All of this results in moderate needs of recourse to short term wholesale funding at the Group level.
Excluding securitizations, most medium- and long-term issuance activity has been concentrated on the Eurozone and the UK, with a moderate contribution from US and Brazil.
On 30 June 2025, the Group's structural liquidity surplus stood at EUR 376.2 billion on a consolidated basis. This surplus is based mainly on fixed income securities (EUR 281.1 billion), equities (EUR 23.4 billion) short positions on fixed income securities and equities (-EUR 34.7 billion) and net lent deposits to central banks and credit entities (EUR 143.8 billion), partially offset by short term funding balance (EUR 37.4 billion).
•High capacity to obtain liquidity on the balance sheet. The reserve includes deposits in central banks and cash, unencumbered sovereign debt, undrawn credit lines granted by central banks, as well as other assets eligible as collateral and other undrawn credit lines in official institutions (FHLB, etc.), all of which reinforce the solid liquidity position of the Group and its subsidiaries. As a proof of this sound and ample liquidity position, the Group as a whole exhibits both a Liquidity Coverage Ratio (LCR) well above the 100% regulatory limit and a Net
| January - June 2025 | | 201 | ||||||
Stable Funding Ratio (NSFR), also well above 100%. Compared with 2024 year-end, both LCR Consolidated and LCR Group have slightly diminished and NSFR has remained fairly stable during the first half of 2025.
•Access to wholesale markets for liquidity based on short and long-term ratings.
•Independence of the subsidiaries in funding within a coordinated liquidity management. The most important subsidiaries obtain their funding in wholesale markets in accordance with their needs, establishing their own liquidity and contingency plans, without recourse to lines from the parent Bank to finance their activity.
•Moderate use of assets as security for structural balance-sheet funding sources that has slightly increased since the end of 2024.
Santander Group performs a continuous internal process to ensure the adequacy of both, its liquidity position and the management, measurement, monitoring and control of its liquidity risk (Group Internal Liquidity Adequacy and Assessment Process). However, in accordance to Santander’s model for liquidity management based on autonomous subsidiaries, this adequacy assessment process in fact encompasses separate adequacy assessment processes at the subsidiary level (each of them an Internal Liquidity Adequacy and Assessment Process), which are complemented and overseen by corporate processes, governance and coordination functions.
All these processes, which are forward looking and integrated into the decision-making and management process, risk management and risk appetite, liquidity planning and overall strategy, have the ultimate objective of ensuring that the Group's entities have and will have adequate liquidity resources to meet their obligations under both normal and stressed conditions and over an appropriate set of time horizons, taking into account all material sources of liquidity risk.
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ITEM 8. CORPORATE GOVERNANCE
In addition to the second quarter 2025 information disclosed in 'Part 1. Consolidated Directors’ Report—Corporate Governance', the following are other significant corporate governance events occurred during 2025:
2025 Ordinary general shareholders’ meeting
Banco Santander held its 2025 ordinary general shareholders’ meeting on 4 April, on second call and exclusively by remote means. The meeting was broadcast live from the corporate headquarters in Boadilla del Monte, where the Presiding Committee (Mesa de la Junta) of the general shareholders’ meeting was gathered.
This meeting format is permitted in accordance with applicable law and the amendment of the Bylaws approved in 2021 under majority support of the shareholders, and is consistent with Grupo Santander’s digitalization policy. The General Shareholders’ Meeting Platform, through which shareholders attended the meeting, provides sufficient guarantees and encourages their participation and full exercise of their rights, regardless of their location.
559,938 shareholders, owning 68.507% of the share capital, attended the general meeting on their own behalf or by proxy. This quorum is the second highest in Banco Santander's shareholders' meetings.
The proposed resolutions submitted by the board passed with an average of 98.7% votes in favour and 99.56% of voting shareholders approved Banco Santander’s management for the 2024 financial year.
Detailed information on the resolutions that passed at the general meeting can be found published on our corporate website (www.santander.com).
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ITEM 9. OTHER DISCLOSURES
Purchases of equity securities by the issuer and affiliated purchasers
The following table shows the repurchases of shares made by the Bank or any of its affiliates during the first six months of 2025:
| 2025 | Total number of shares -or units purchased (A) | Average price paid per share (or unit) in euros | Total number of shares (or units) purchased as part of publicly announced plans or programs (B) | Euro value of the maximum number of shares (or units) that may yet be purchased under the plans or programs (B) | |||||||||||||||||||||||||
| January | 14,567,845 | 4.60 | 0 | 0 | |||||||||||||||||||||||||
| February | 63,931,812 | 5.69 | 49,000,000 | 1,306,169,761 | |||||||||||||||||||||||||
| March | 68,297,355 | 6.26 | 50,100,000 | 995,466,845 | |||||||||||||||||||||||||
| April | 138,839,323 | 5.41 | 121,400,000 | 308,105,374 | |||||||||||||||||||||||||
| May | 50,655,496 | 6.56 | 43,100,000 | 25,125,209 | |||||||||||||||||||||||||
| June | 11,284,972 | 6.96 | 3,566,950 | 0 | |||||||||||||||||||||||||
| Total | 347,576,803 | 267,166,950 | |||||||||||||||||||||||||||
A) The number of shares purchased does not include securities lending and short positions.
(B) Purchases relate to the Second 2024 Buyback Programme. For more information see 'Corporate Governance. Section 2.5 Treasury shares' in Part 1 of our 2024 Form 20-F and note 11 to our interim consolidated financial statements in Part 1 of this report on Form 6-K.
During the first six months of 2025, all purchases and sales of equity securities were made in open-market transactions.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Banco Santander, S.A. | ||||||||
Date: 31 July 2025 | By: | /s/ José García Cantera | ||||||
| Name: | José García Cantera | |||||||
| Title: | Chief Financial Officer | |||||||
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