BCDRF - Banco Santander, S.A. (SAN) Q4 2024 Earnings Call Transcript
2025-02-05 11:52:00 ET
Banco Santander, S.A. (SAN)
Q4 2024 Earnings Conference Call
February 5, 2025, 4:00 am ET
Company Participants
Raul Sinha - Global Head, IR
Ana Botín - Executive Chair
Hector Grisi - CEO
José García Cantera - CFO
Conference Call Participants
Ignacio Ulargui - BNP Paribas
Marta Sanchez - Citi
Francisco Riquel - Alantra
Chris Hallam - Goldman Sachs
Alvaro Serrano - Morgan Stanley
Andrea Filtri - Mediobanca
Cecilia Romero - Barclays
Carlos Peixoto - CaixaBank
Sofie Peterzens - JPMorgan
Antonio Reale - Bank of America
Britta Schmidt - Autonomous
Ignacio Cerezo - UBS
Presentation
Raul Sinha
[Call Starts Abruptly] everyone, and thank you for joining Santander's 2024 Results Presentation. I'm Raul Sinha, Global Head of Investor Relations and I'm delighted to be here joining our Executive Chair, Ana Botín; our CEO, Hector Grisi; and our CFO, José García Cantera.
Today’s presentation will follow the usual structure for full year presentations. Ana will kick off the presentation by talking about our results and achievements in the context of our strategy. Then Hector will add detail to our financial performance. Finally, Ana will conclude with our outlook for 2025 before opening for Q&A.
Ana, over to you.
Ana Botín
Thank you, Raul, and welcome, everybody to our full year results presentation. 2024 was another record year, the third consecutive year of record results for Santander. It shows the benefits of our strategy, the resilience of our business model.
As we said in 2023, we have entered a new phase of value creation and this has enabled us to deliver or exceed all our key financial targets.
Profit reached a record €12.6 billion, supported by both strong revenue growth and customer growth. We grew 8 million customers. And this happened across all our global businesses in a very balanced way. We have continued to invest for the future and we're making excellent progress towards a more simple and more integrated model through one transformation. This has been instrumental in improvements in efficiency by more than 2 percentage points and increasing our profitability RoTE to 16.3%.
Our balance sheet remains solid with a strong capital ratio ends the year at an all-time high of 12.8, reflecting our ability to generate capital organically. Finally, we delivered again strong shareholder value creation with TNAV and dividend per share growing by 14%. And by the way, this is in spite of pressure from currency devaluation in some markets, which was offset by our profitability and the appreciation of the U.S. dollar with our U.S. business acting as a natural hedge against the pressure on the Brazilian Real, for example.
So let me just go into a bit more detail on our full year performance. Again, very high quality of results with strong growth in our top-line revenue up 10% in constant euros, and as I said, supported by both customer activity and good delivery across all our businesses. Fee income is up 11% again in constant supported by significant growth in customers, up 8 million and very much the network benefits we are capturing throughout the Group, which already represent about €20 billion about a third of our revenues are due to being part of the Santander Group.
Expenses grew well below revenue, showcasing again the positive effects of our ONE Transformation. And we delivered record net operating income of €36 billion.
Finally, we continue to be prudent in our approach to risk and our cost of risk ended at 1.15% better than our initial guidance for the year. Again, we have shown over time that our results are sustainable and less volatile over the cycle than most of our peers and this is again because we are retail consumer powerhouse with a business model that combines both geographical diversification with business diversification and a strong risk management....
Banco Santander, S.A. (SAN) Q4 2024 Earnings Call Transcript