Banco Santander SA (SAN) witnessed a remarkable pre-market surge of 8.19% on Wednesday, driven by a combination of robust fourth-quarter financial performance, optimistic guidance for 2025, and investor-friendly capital return plans.
The Spanish banking giant reported fourth-quarter results that exceeded analysts' expectations across key metrics. Santander's net profit and revenue figures for the quarter outpaced consensus forecasts, buoyed by particularly impressive performances in major 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 initiatives.
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, fueling the pre-market rally in its stock price.
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