The following is a summary of the Banco Santander, S.A. (SAN) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Santander reported a Q1 2024 profit of €2.9 billion, up 11% YoY and 9% in constant euros.

• Revenue in Q1 saw a year-on-year increase close to double digits in constant euros.

• The efficiency ratio improved 1.4 percentage points YoY to 42.6%. The return on tangible equity rose 55 basis points YoY to 14.9%.

• The company's balance sheet and robust credit quality contributed to profitable growth and shareholder value creation. The TNAV plus dividend per share grew by 14% YoY.

• Costs maintained stability despite inflationary pressures due to strong cost control strategies, particularly effective in retail, consumer, and wealth sectors.

Business Progress:

• Santander secured 5 million new customers over the last year, progressing on its transformation plan and growing profitability.

• Notable growth across all global businesses complements Santander's transformation strategy, with retail business and wealth management sectors benefiting significantly.

• Santander aims to reach the 2024 CET1 ratio target of 12% and a return on tangible equity of 16%. It plans to dispose equivalent to €30 billion in risk-weighted assets with a reduced capital cost.

• The bank's shift to a more integrated business model drives efficiency improvements and profitable growth. It has begun deploying its global card platform, Plard.

• Through strategic investments in the US, Santander seeks to enhance its consumer, CIB, private banking, and wealth management segments. The bank aims to achieve a 15% RoTE in the US by 2025.

• Cost of risk is expected to be maintained around 1.2% in 2024, and NII trends in Spain, UK, and Brazil indicate positive growth moving forward.

More details: Banco Santander IR

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