Santander on Wednesday announced 10 billion euros ($10.40 billion) in share buybacks for 2025 and 2026 and forecast higher profitability on the back of stronger growth in its U.S. consumer unit and efficiency gains.

European banks are signaling that they can keep making fat shareholder payouts as profits hold up despite a decline in interest rates.

Shares in Spain’s biggest bank by assets were sharply higher after its results, and it said it was confident it would be able to boost profitability again in 2025, raising a target despite projecting broadly stable revenue for the year.

Santander Brasil's NII - earnings on loans minus deposit costs - rose 16% in the fourth quarter to 15.98 billion reais, while its return on average equity (ROAE), a gauge of profitability, was up 5.3 percentage points to 17.6%. "We are ready to move forward with our ROAE evolution with a disciplined approach to capital allocation," Leao said.

Spanish banking giant Santander announced record annual profits for a third consecutive year on Wednesday as a strong commercial performance offset the impact of falling interest rates.

Banco Santander obtained a net profit of almost 3.7 billion euros in Spain in 2024, 58.7% more than the previous year, thanks to higher revenues and lower provisions, in addition to the contribution of results from financial operations.

Santander Brasil on Wednesday reported a 75% jump in fourth-quarter net profit, sending its shares higher as it surpassed market expectations on the back of stronger margins and increased fees. The lender,