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Banco Santander (ES:SAN)
BME:SAN
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Banco Santander (SAN) AI Stock Analysis

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ES:SAN

Banco Santander

(BME:SAN)

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Outperform 73 (OpenAI - 4o)
Rating:73Outperform
Price Target:
€10.00
▲(12.11% Upside)
Banco Santander's overall stock score reflects strong earnings performance and positive technical indicators, despite challenges with leverage and cash flow. The bank's strategic initiatives and solid capital management provide a stable outlook, though regional challenges and litigation risks require attention.
Positive Factors
Record Quarterly Profit
The record profit indicates strong revenue growth and operational efficiency, enhancing the bank's market position and financial stability.
Strong RoTE Improvement
Improved RoTE reflects effective capital allocation and operational efficiency, supporting long-term profitability and shareholder value.
Solid Balance Sheet and Capital Ratio
A strong capital ratio ensures financial resilience and capacity to absorb economic shocks, supporting sustainable growth.
Negative Factors
Declining Revenue Growth
Decreasing revenue growth can indicate market challenges or competitive pressures, potentially impacting future earnings.
High Leverage
Significant leverage may limit financial flexibility and increase risk, especially in volatile economic conditions.
Litigation Risks in UK
Litigation risks can lead to financial liabilities and reputational damage, affecting long-term business operations and profitability.

Banco Santander (SAN) vs. iShares MSCI Spain ETF (EWP)

Banco Santander Business Overview & Revenue Model

Company DescriptionBanco Santander, S.A. provides various retail and commercial banking products and services to individuals, small and medium-sized enterprises, and large companies worldwide. It offers demand and time deposits, and current and savings accounts; mortgages, consumer finance, syndicated corporate loans, structured financing, cash management, export and agency finance, trade and working capital solutions, and corporate finance; and insurance products. The company also provides cash, asset, and wealth management; and private banking services. In addition, it is involved in the corporate banking; treasury, risk hedging, foreign trade, confirming, custody, and investment banking activities. The company operates through a network of 9,879 branches. The company was formerly known as Banco Santander Central Hispano S.A. and changed its name to Banco Santander, S.A. in June 2007. Banco Santander, S.A. was founded in 1856 and is headquartered in Madrid, Spain.
How the Company Makes MoneyBanco Santander generates revenue primarily through interest income from loans and advances to customers, which constitutes a significant portion of its earnings. Additionally, the bank earns fees and commissions from various services such as account maintenance, transaction processing, and wealth management. The investment banking division contributes to revenue through advisory services, underwriting, and market-making activities. Key partnerships with technology firms enhance its digital banking capabilities, attracting a younger customer base and increasing transaction volumes. Furthermore, Santander's presence in multiple countries allows it to diversify its revenue streams and mitigate risks associated with economic fluctuations in specific regions.

Banco Santander Earnings Call Summary

Earnings Call Date:Oct 29, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 04, 2026
Earnings Call Sentiment Positive
Santander has delivered strong results with record profits, improved RoTE, and solid capital ratios. The bank is on track to meet its strategic targets, supported by growth in key segments such as Wealth and Payments. However, challenges persist in Brazil and Argentina due to high interest rates and inflation, and ongoing litigation risks in the UK require monitoring.
Q3-2025 Updates
Positive Updates
Record Quarterly Profit
Santander achieved a record quarterly profit of EUR 3.5 billion, marking the best 9-month period ever with strong revenue growth across global businesses and an increase in the customer base by 7 million year-on-year to 178 million.
Strong RoTE Improvement
The bank reported a 70 basis points increase in RoTE to 16.1%, with a target of around 16.5% for 2025, reflecting excellent progress in efficiency gains and disciplined capital allocation.
Solid Balance Sheet and Capital Ratio
Santander's balance sheet remains solid with a CET1 capital ratio at an all-time high of 13.1% and robust credit quality, indicating strong shareholder value creation with TNAV plus cash dividend per share growing 15% despite currency headwinds.
Strong Performance in Wealth and Payments
The Wealth segment reported a profit increase of 21%, while Payments saw profit growth of more than 60%, both driven by high commercial activity and strategic initiatives.
Negative Updates
Challenges in Brazil and Argentina
In Brazil, high real interest rates are creating a challenging environment for companies, particularly in agribusiness, while in Argentina, high real rates and inflation are impacting credit risk and profitability.
Litigation Risks in UK
Ongoing litigation risks related to the U.K. AXA and motor finance provisions, although not expected to be material for the group, could pose future challenges.
Company Guidance
In the third quarter of 2025, Santander reported a record quarterly profit of EUR 3.5 billion, marking the best nine-month period in its history. The bank's solid performance was driven by strong revenue growth across global businesses and a customer base increase of 7 million year-on-year, reaching 178 million. The RoTE improved by 70 basis points to 16.1%, supported by efficiency gains and a solid capital ratio of 13.1%. Despite currency headwinds, the TNAV plus cash dividend per share grew by 15%. Santander is on track to meet its strategic plan targets for 2023-2025, with a focus on disciplined capital allocation, maintaining a CET1 ratio above 13%, and executing a EUR 10 billion share buyback plan for 2025-2026. The bank's net interest income grew by 2%, while fees rose by 8%, contributing to a 4% revenue increase in constant euros. Operational efficiencies were evident, with expenses growing below revenue, resulting in solid net operating income growth. The bank anticipates sustaining its performance through strategic transformations and further leveraging its global platforms.

Banco Santander Financial Statement Overview

Summary
Banco Santander demonstrates strong profitability and operational efficiency with high profit margins and return on equity. However, challenges include declining revenue growth, high leverage, and a significant drop in free cash flow growth, indicating potential liquidity issues.
Income Statement
75
Positive
Banco Santander's income statement shows strong profitability with a high gross profit margin of 94.32% and a solid net profit margin of 25.11% for the TTM. However, revenue has slightly declined by 2.13% in the TTM, indicating potential challenges in revenue growth. The EBIT and EBITDA margins remain robust at 35.91% and 42.11%, respectively, showcasing efficient operational management.
Balance Sheet
65
Positive
The balance sheet reflects a high debt-to-equity ratio of 3.10, which indicates significant leverage and potential risk. However, the return on equity is strong at 13.45%, suggesting effective use of equity to generate profits. The equity ratio stands at 5.54%, which is relatively low, highlighting a reliance on debt financing.
Cash Flow
60
Neutral
Cash flow analysis reveals a concerning decline in free cash flow growth by 1080.28% in the TTM, indicating potential liquidity challenges. The operating cash flow to net income ratio is low at 3.55%, suggesting limited cash generation relative to net income. However, the free cash flow to net income ratio is healthy at 81.98%, indicating efficient cash conversion from profits.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue53.16B50.80B45.78B41.95B39.01B60.50B
Gross Profit50.14B51.20B46.97B41.95B39.01B34.39B
EBITDA22.39B22.22B19.64B18.23B16.87B11.18B
Net Income13.35B12.57B11.08B9.61B8.12B-8.77B
Balance Sheet
Total Assets1.82T1.84T1.80T1.73T1.60T1.51T
Cash, Cash Equivalents and Short-Term Investments351.61B237.41B406.22B270.77B264.01B153.84B
Total Debt311.96B483.38B310.98B282.96B249.02B235.27B
Total Liabilities1.71T1.73T1.69T1.64T1.50T1.42T
Stockholders Equity100.50B98.60B95.42B89.10B86.93B81.48B
Cash Flow
Free Cash Flow31.66B-32.65B66.92B16.87B45.29B57.63B
Operating Cash Flow38.62B-24.16B80.56B27.71B56.69B66.15B
Investing Cash Flow-1.97B-3.71B-80.91B-3.90B-3.71B-7.22B
Financing Cash Flow-9.39B-5.51B-2.06B-9.96B-1.32B-1.91B

Banco Santander Technical Analysis

Technical Analysis Sentiment
Positive
Last Price8.92
Price Trends
50DMA
8.66
Positive
100DMA
8.18
Positive
200DMA
7.25
Positive
Market Momentum
MACD
0.16
Positive
RSI
51.49
Neutral
STOCH
24.45
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:SAN, the sentiment is Positive. The current price of 8.92 is above the 20-day moving average (MA) of 8.90, above the 50-day MA of 8.66, and above the 200-day MA of 7.25, indicating a bullish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 51.49 is Neutral, neither overbought nor oversold. The STOCH value of 24.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ES:SAN.

Banco Santander Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
€100.84B9.7918.66%4.11%5.66%8.16%
76
Outperform
$6.17B9.868.76%6.70%-9.39%45.60%
76
Outperform
€64.98B10.9715.73%5.04%-7.50%12.76%
75
Outperform
€11.80B11.4216.71%4.33%-7.12%15.96%
73
Outperform
£130.83B9.7112.91%2.08%-16.49%14.32%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ES:SAN
Banco Santander
8.92
4.52
102.82%
ES:SAB
Banco de Sabadell
3.11
1.37
79.10%
ES:BKT
Bankinter
13.16
5.91
81.70%
ES:BBVA
Banco Bilbao Vizcaya Argentaria
17.76
8.95
101.50%
ES:CABK
CAIXABANK
9.02
3.88
75.35%
ES:UNI
Unicaja Banco SA
2.41
1.30
116.92%

Banco Santander Corporate Events

Regulatory Filings and Compliance
Banco Santander Announces Total Voting Rights for October 2025
Neutral
Oct 31, 2025

Banco Santander has announced its total voting rights as of October 31, 2025, in compliance with the Financial Conduct Authority’s Disclosure Guidance and Transparency Rule. The company’s issued share capital consists of over 14.8 billion ordinary shares, with a total of approximately 14.76 billion voting rights, which stakeholders can use to assess their interests in the company.

Regulatory Filings and Compliance
Banco Santander Capital Requirements Maintained by ECB
Positive
Oct 31, 2025

Banco Santander announced that the European Central Bank has maintained the bank’s minimum prudential capital requirements, effective from January 2026, with a Pillar 2 requirement of 1.74% at a consolidated level. The increase in minimum capital requirements by 20 basis points is due to changes in systemic and countercyclical capital buffer requirements. Despite these changes, Santander maintains a surplus of capital over these requirements, indicating strong financial health and stability.

Business Operations and StrategyStock Buyback
Banco Santander Advances Share Buyback Program
Positive
Oct 30, 2025

Banco Santander has announced the progress of its share buyback program, revealing that it has repurchased approximately 14.8% of its outstanding shares as of 2021, amounting to 940,924,644 Euros, which is about 55.3% of the program’s maximum investment. This strategic move is part of the bank’s efforts to enhance shareholder value and optimize its capital structure, reflecting its strong financial position and commitment to returning capital to shareholders.

Financial Disclosures
Banco Santander Releases Q3 2025 Financial Results
Neutral
Oct 29, 2025

Banco Santander has released its financial report and earnings presentation for the third quarter of 2025, which have been submitted to the National Storage Mechanism for public inspection. This release provides stakeholders with essential insights into the company’s financial performance, potentially impacting its market positioning and investor relations.

Stock Buyback
Banco Santander Advances Share Buyback Program
Positive
Oct 16, 2025

Banco Santander has announced the progress of its share buyback program, with a total purchase amounting to 698,648,924 Euros, representing 41.1% of the program’s maximum investment. This initiative has led to the repurchase of approximately 14.7% of its outstanding shares since 2021, reflecting the bank’s commitment to returning value to shareholders and strengthening its market position.

Business Operations and StrategyStock Buyback
Banco Santander Advances in Share Buyback Program
Positive
Oct 9, 2025

Banco Santander has announced the progress of its share buyback program, revealing that it has repurchased shares worth 603,268,044 Euros, accounting for approximately 35.5% of the program’s maximum investment. This initiative, which has led to the repurchase of about 14.6% of its outstanding shares since 2021, is part of the bank’s strategic efforts to enhance shareholder value and optimize its capital structure.

Business Operations and StrategyFinancial Disclosures
Moody’s Upgrades Banco Santander’s Ratings Following Spain’s Bond Improvement
Positive
Oct 3, 2025

Moody’s Investors Service has upgraded Banco Santander’s long-term deposit and senior debt ratings from A2 to A1, following an improvement in Spain’s government bond rating. This upgrade reflects Santander’s stable operating environment, broad diversification, and strong financial performance, enhancing its market position and reassuring stakeholders of its financial stability.

Business Operations and Strategy
Banco Santander Executive Disposes Shares in Strategic Transaction
Neutral
Oct 2, 2025

Banco Santander announced a transaction involving the disposal of 45,000 ordinary shares at a price of 8.8150 euros per share by Mr. Jaime Pérez Renovales, a Group Senior Executive Vice-President. This transaction, conducted on October 2, 2025, on the XMAD exchange, reflects internal managerial decisions and could influence stakeholder perceptions regarding the company’s stock management and executive activities.

Business Operations and StrategyStock Buyback
Banco Santander Advances Share Buyback Program
Positive
Oct 2, 2025

Banco Santander has announced the progress of its share buyback program, which has seen the bank repurchase approximately 14.5% of its outstanding shares since 2021. The recent transactions, conducted between September 25 and October 1, 2025, amounted to over 536 million Euros, representing 31.5% of the program’s maximum investment. This move is part of the bank’s strategy to enhance shareholder value and optimize its capital structure.

Stock BuybackDividends
Banco Santander Announces Interim Cash Dividend for 2025
Positive
Sep 30, 2025

Banco Santander has announced an interim cash dividend of 11.5 euro cents per share, representing approximately 25% of the Group’s underlying profit for the first half of 2025. This decision is part of the bank’s shareholder remuneration policy, which aims to distribute around 50% of the Group’s underlying profit through cash dividends and share buybacks. The dividend will be paid on November 3, 2025, and aligns with the ongoing share buyback program, reflecting the bank’s commitment to shareholder returns.

Regulatory Filings and Compliance
Banco Santander Announces Total Voting Rights Update
Neutral
Sep 30, 2025

Banco Santander has announced its total voting rights as of 30 September 2025, with an issued share capital of over 14.8 billion ordinary shares. This announcement is in compliance with the FCA’s Disclosure Guidance and Transparency Rules, providing shareholders with the necessary information to assess their interests in the company.

Stock Buyback
Banco Santander Advances Share Buyback Program
Positive
Sep 25, 2025

Banco Santander has announced the progress of its share buyback program, which has seen the bank repurchase approximately 14.5% of its outstanding shares since 2021. The program, which aims to enhance shareholder value, has so far utilized 28.2% of its maximum investment amount, totaling 479,926,754 Euros in share purchases between 18 and 24 September 2025.

Business Operations and StrategyStock Buyback
Banco Santander Advances Share Buyback Program
Positive
Sep 18, 2025

Banco Santander has announced the continuation of its share buyback program, with recent transactions amounting to approximately 424.88 million Euros, representing 25% of the program’s maximum investment. This initiative reflects the bank’s strategy to enhance shareholder value and manage its capital structure effectively, having repurchased around 14.5% of its outstanding shares since 2021.

Business Operations and StrategyExecutive/Board Changes
Banco Santander Grants Shares to Senior Executive in Bonus Buyout
Neutral
Sep 11, 2025

Banco Santander has announced a transaction involving the granting of ordinary shares to Mr. Nitin Prabhu, the Group Senior Executive Vice-President, as part of the Bonus Buyout 2025. This transaction, involving 28,521 shares valued at EUR 8.34 each, reflects the company’s ongoing efforts to incentivize its leadership, potentially impacting its executive management strategies and stakeholder relations.

Business Operations and StrategyStock Buyback
Banco Santander Advances Share Buyback Program
Positive
Sep 11, 2025

Banco Santander has announced the progress of its share buyback program, revealing that it has repurchased shares worth approximately 379 million Euros, which accounts for 22.3% of the program’s maximum investment amount. This strategic move, which has led to the repurchase of about 14.4% of its outstanding shares since 2021, is expected to strengthen the bank’s market position and enhance shareholder value.

Business Operations and StrategyStock Buyback
Banco Santander Advances Share Buyback Program
Positive
Sep 4, 2025

Banco Santander has announced the progress of its share buyback program, which has seen the bank repurchase approximately 14.4% of its outstanding shares since 2021. As of September 3, 2025, the bank has invested 341,234,794 Euros in the buyback, representing 20.1% of the program’s maximum investment, signaling a strategic move to enhance shareholder value and optimize capital structure.

Regulatory Filings and Compliance
Banco Santander Announces Total Voting Rights Update
Neutral
Aug 29, 2025

Banco Santander has announced its total voting rights as of August 29, 2025, in compliance with the Financial Conduct Authority’s Disclosure Guidance and Transparency Rule. The company’s issued share capital consists of over 14.8 billion ordinary shares, with a total of approximately 14.84 billion voting rights available for shareholders to use in determining their interest or changes in interest in the company.

Business Operations and StrategyPrivate Placements and Financing
Banco Santander Extends Maturity and Adjusts Interest on Covered Bonds
Positive
Aug 29, 2025

Banco Santander has announced modifications to its Internationalization Covered Bonds Series 4, extending the maturity date from March 2026 to September 2030 and adjusting the interest rate. This strategic move, supported by unanimous investor consent, reflects the bank’s adaptability in managing its financial instruments, potentially enhancing its market positioning and offering stability to stakeholders.

Business Operations and StrategyStock Buyback
Banco Santander Advances Share Buyback Program
Positive
Aug 28, 2025

Banco Santander has announced the progress of its share buyback program, revealing that it has repurchased shares worth 297,730,065 Euros, which accounts for approximately 17.5% of the program’s maximum investment. This initiative, which has seen the bank buy back around 14.4% of its outstanding shares since 2021, is part of a strategic move to enhance shareholder value and optimize capital structure.

Stock Buyback
Banco Santander Advances Share Buyback Program with Significant Repurchases
Positive
Aug 21, 2025

Banco Santander has announced the progress of its share buyback program, revealing that it has repurchased shares worth approximately 255.5 million Euros, which accounts for 15% of the program’s maximum investment. This initiative, aimed at enhancing shareholder value, has resulted in the reacquisition of about 14.4% of its outstanding shares since 2021, potentially strengthening its market position and signaling confidence in its financial stability.

Business Operations and StrategyStock Buyback
Banco Santander Advances Share Buyback Program
Positive
Aug 14, 2025

Banco Santander has announced the progress of its share buyback program, having repurchased approximately 14.3% of its outstanding shares since 2021. The recent transactions between August 7 and August 13, 2025, amounted to a cash investment of 214,649,085 Euros, representing 12.6% of the program’s maximum investment amount. This strategic move is likely to impact the company’s market positioning by potentially increasing shareholder value and optimizing capital structure.

Executive/Board Changes
Banco Santander Grants Shares to Senior Executive
Neutral
Aug 11, 2025

Banco Santander announced that Mr. Nitin Prabhu, Group Senior Executive Vice-President, has been granted ordinary shares free of charge under the Bonus Buyout 2025. The shares, delivered on August 7, 2025, were valued at an opening price of EUR 7.636, with a total volume of 6,577 shares. This transaction reflects the company’s ongoing commitment to aligning executive compensation with shareholder interests, potentially impacting its market positioning and stakeholder relations.

Business Operations and StrategyStock Buyback
Banco Santander Advances in Share Buyback Program
Positive
Aug 7, 2025

Banco Santander has announced the progress of its share buyback program, revealing that it has repurchased shares worth 156,755,200 Euros, representing approximately 9.2% of the program’s maximum investment. This strategic move, which has led to the acquisition of about 14.3% of its outstanding shares since 2021, is part of the bank’s broader effort to enhance shareholder value and strengthen its market position.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 05, 2025