Santander Posts Record Profit, Raises Dividend in 2025

Banco Santander reported a record quarterly profit of €3.4 billion in Q1 2025, up 19% year-over-year, with earnings per share up 26% and return on tangible equity reaching 15.8%. Despite solid overall growth, shares fell over 5% as flat net interest income and slowing revenue growth reflected underperformance in the UK, Brazil, and Mexico, where net income missed expectations. The bank added nine million new customers and improved asset quality, but increased provisions and ongoing branch closures in the UK were linked to its digital transformation. Retail and Corporate & Investment Banking profits rose 28% and 18% respectively, while Wealth Management and Payments also saw strong gains. Santander raised its 2024 total dividend by 19% and continued share buybacks totaling €3.1 billion. The bank remains cautious, citing potential downside risks to global and UK growth due to economic and geopolitical uncertainties.