Santander Posts Record Profit, Takes Brazil Charge

Banco Santander reported a record second-quarter net profit of €3.43 billion, a 7% year-over-year increase, driven by higher fee income and lower loan loss provisions despite declining net interest income. The bank launched a €1.7 billion share buyback, part of its plan to return at least €10 billion to shareholders over two years, and reaffirmed its 2025 guidance including a return on tangible equity of around 16.5% and €62 billion in annual revenue. Santander’s common equity Tier 1 ratio stood at a robust 13%. However, shares fell up to 2.8% after the bank disclosed a €467 million charge tied to its Brazilian operations, raising concerns about the economic outlook in that market. Chair Ana Botin stated that the bank remains on track to meet its financial targets. The results highlight Santander's ongoing resilience amid geopolitical and global interest rate pressures, while also signaling increased challenges in Brazil.