Santander posts record profit of 3.402 billion euros in the first quarter of the year
The bank improves profits by 19% thanks to commission income and new customer acquisition.
MadridIn the first quarter of 2025, Banco Santander achieved a record profit of €3.402 billion, a 19% increase over the same period last year. The increase is the result of record commission income and reduced costs, as reported by the company through the National Securities Market Commission (CNMV).
"We are entering a scenario in which the interest rate environment is less favorable, but business will remain good," anticipated the bank's president, Ana Botín, just three months ago, when the bank presented its full-year earnings for 2024. It should be remembered that the increase in interest rates due to its own rates, corporate or consumer loans, translates into an improvement in its net interest income.
Now that organizations like the ECB have begun to lower rates, this aspect of the banking business has also normalized. In the case of Banco Santander, during the first three months of the year, net interest income stood at €11.378 billion, 5% less than the same period last year. In contrast, fees increased by 4%, to €3.369 billion, and gross income rose by 1%, to €15.537 billion. Despite the changes in monetary policy, the strong demand for credit in economies such as Spain, as well as in other regions where the bank operates, such as the United States, where it currently appears to be avoiding the impact of the trade war, has allowed the financial institution to record a record profit in three months. Furthermore, the bank's business is advancing in parallel with customer acquisition. During the first three months of the year, the bank has raised another €9 million, adding to its total of €175 million worldwide.
Changes in tax
The new design of the extraordinary tax on banking (until now, it was a levy) has also been noted in the results for this first quarter of 2025. Thus, instead of paying the entire amount owed for this tax in a single payment, banks can now do so in stages. In the case of Banco Santander, it paid €87 million in the first quarter of the year, compared to the €335 million paid last year.
Overall, the bank confirms all its objectives for 2025. It expects revenues to reach €62 billion, fees to continue increasing, and profitability to reach 16.5%. The bank has also promised more than €10 billion in shareholder remuneration.
