Banco Santander has announced a significant share buyback program of approximately €5.03 billion, coinciding with the release of its record-breaking full-year results for 2025. The move signals the bank’s strong financial performance and commitment to returning value to its shareholders.
Banco Santander achieved a record attributable profit of €14,101 million in 2025, marking a 12% increase year-on-year (or 16% in constant euros). This performance was driven by resilient net interest income, record fee income, and improved efficiency, alongside continued credit quality enhancements. The fourth quarter of 2025 also saw a record profit of €3,764 million, extending a streak of seven consecutive quarters with record results.
The bank’s return on tangible equity (RoTE) reached 16.3% post-AT1, with earnings per share (EPS) rising by 17% to €0.91. Tangible net asset value (TNAV) per share stood at €5.76 at the end of 2025. Including cash dividends, total value creation for shareholders increased by 14%.
Customer funds saw a 6% growth in constant euros, with deposits up 5% and mutual funds up 14%. Loans increased by 4% in constant euros, reaching approximately €1.0 trillion. Total income for the year was €62,390 million, flat in euros but up 4% in constant euros, bolstered by record net fee income of €13,661 million.
The approved share buyback program, valued at up to €5.03 billion, commenced on February 4, 2026, and is scheduled to run until July 21, 2026. The purpose of the buyback is to reduce Santander’s share capital through the redemption of acquired shares.
Of the total buyback amount:
- Approximately €1.83 billion is allocated for ordinary profit distribution, representing 25% of the Group’s ordinary profit in the second half of 2025, in line with the shareholder remuneration policy.
- An additional €3.2 billion constitutes an extraordinary repurchase. This portion is funded by CET1 capital generated following the completion of the sale of 49% of Santander Bank Polska to Erste Group.
The program will be executed at market prices, subject to specific restrictions on price and volume to ensure orderly trading. Santander reserves the right to terminate or suspend the program if the maximum monetary amount is reached or if other circumstances warrant it.
The buyback, alongside the strong 2025 results, underscores Santander’s strategy of enhancing shareholder returns while maintaining robust capital levels. The bank continues to focus on customer growth, operational efficiency, and strategic capital allocation, including potential acquisitions such as the recently announced deal for Webster Financial Corporation.
