Banco Santander SA (SAN) witnessed a remarkable 8.38% surge in its stock price on Wednesday, driven by a combination of strong financial performance, optimistic guidance, and investor-friendly capital return plans.

The Spanish banking giant reported fourth-quarter results that exceeded analysts' expectations. Santander's net profit and revenue figures for the quarter surpassed consensus forecasts, with particularly impressive performances in key markets such as Spain, Mexico, Brazil, and the United States.

Furthermore, the bank provided an upbeat outlook for 2025, targeting a return on tangible equity (ROTE) of over 17%. This ambitious profitability goal is at the higher end of Santander's previous guidance, reflecting the bank's confidence in its growth prospects and operational efficiency.

Notably, Santander also unveiled plans to return a substantial €10 billion to shareholders through share buybacks, surpassing market expectations of around €6 billion. This strategic move to enhance shareholder value has further bolstered investor confidence in the bank's financial strength and commitment to capital returns.