Santander has reported a notable increase in its financial performance for the first quarter of 2025, with a record attributable profit of €3,402 million, marking a 19% rise from the same period in 2024. This growth was supported by a record increase in net fee income by 4% and a reduction in costs. Additionally, the bank saw an increase in its customer base, adding nine million new customers, bringing the total to 175 million.
The profit growth was influenced by a temporary revenue levy in Spain, which in 2024 amounted to €335 million, fully recorded in the first quarter. In contrast, only €87 million was recorded in 2025 for the quarterly tax on revenue in Spain. Had the levy been evenly spread over the quarters in 2024, consistent with the 2025 method, the profit rise would have been 10%.
Santander's return on tangible equity (RoTE) reached 15.8% post-AT1, with earnings per share rising to €0.21, an increase of 26%. The tangible net asset value (TNAV) per share closed at €5.46 at the end of the quarter. Considering the interim cash dividend from the 2024 results, total value creation in terms of TNAV plus cash dividend per share saw a rise of 14.5%.
In terms of financial management, customer funds, including deposits and mutual funds, rose by 5% in constant euros, with a 3% increase in deposits. This growth was driven by the expansion in the Retail and Consumer segments. Concurrently, loans observed a 1% growth in constant euros, reaching €1.02 trillion. This was attributed to an increase in lending within Consumer, CIB, Wealth, and Payments sectors, even as there was a slight dip in Retail loans due to early repayments and the bank's focus on profitable growth and capital optimization.
The bank saw its total income grow by 1%, or 5% in constant euros, totaling €15,537 million. This increase was fueled by record net fee income supported by heightened activity and customer growth, although net interest income remained unchanged excluding Argentina.
Santander continues to implement its strategic pursuits and delivers messages to shareholders under the guidance of its Executive Chair and CEO.