Santander Posts Record Q3 Profit as US Growth Offsets Brazil

Santander Bank of Spain reported a 7.8% year-over-year increase in its third-quarter net profit, claiming that lower lending revenue and some difficulties in Brazil were offset by a strong performance in its U.S. business.

The largest bank in the euro zone recorded a net profit of 3.5 billion euros ($4.08 billion) for the July-September quarter. This was the sixth consecutive record-high quarterly result, exceeding the 3.39 billion euros predicted by analysts in a Reuters poll.

The bank reported that a 1.1% drop in lending income was offset by increases of 4.3% in fees and 0.87% in revenues.

Strong Quarterly Performance and Profit Growth

After accounting for the impact of additional Tier 1 (AT1) capital instruments, Santander’s profitability metric – the tangible equity ratio (ROTE) – remained at 16.2% from the prior quarter. The bank stated that it was on course to reach both its full-year revenue objective of approximately 62 billion euros and its target of about 16.5% for this year.

Santander’s geographic reach—it operates in ten key markets across Europe and the Americas—will serve as a stabilizer in an unpredictable global climate, according to Executive Chair Ana Botin.

“Looking ahead, we are on track to meet all our 2025 goals and, amid continued geopolitical and market volatility, we are confident we will keep delivering further profitable growth,” Botin stated in a press release.

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U.S. Market Drives Profit Amid Global Volatility

Due to increased lending income and fees from its corporate and investment banking operations, the underlying net profit in the U.S., its fifth-biggest market, increased by 64%.

Higher interest rates have previously helped the bank, and expansion in important Latin American markets has given it an advantage over competitors who rely more on Europe.

Challenges in Brazil Impact Emerging Market Performance

However, it was negatively impacted by currency appreciation in some of its emerging markets, such as Brazil, where the real’s devaluation led to a 5.9% drop in underlying net profit during the quarter.