Santander’s US-Based Digital Banking Business Helps Drive Record Quarter

Santander says sustained customer growth and ongoing digital transformation helped drive a record quarter.

Management said in releasing earnings Wednesday (Oct. 29) that the bank’s long-term profitability hinges on streamlining its technology stack and strengthening its digital relationships with its 178 million customers, a 7 million year-over-year increase.

Santander reported an attributable profit of €10.3 billion in the first nine months of 2025, up 11% from the same period last year, calling it “a record performance for the period.”

Hector Blas Grisi Checa, Santander’s CEO, highlighted the scale of the bank’s ongoing structural change, telling analysts on an earnings call that simplification, automation, and tech capabilities are “exceeding the level expected by the end of ’25.”

The CEO also outlined Santander’s core retail objective: “In retail, we are transforming the way we operate to become a digital bank with branches, combining cutting-edge technology with the expertise and proximity of our teams.”

Meanwhile, the bank says Openbank, Santander’s digital banking unit, has attracted $6.75 billion in deposits and 162,000 new customers in just the U.S., its fourth largest market. The company’s other efforts stateside include a partnership with Verizon to bolster its deposit base.

The bank also recently integrated Santander Consumer Finance and Openbank in Europe to simplify operations, lower costs, and improve product offerings.

“This combination will strengthen our position in key markets like Germany and across Europe, enabling us to offer customers a broader range of products and a seamless digital and in-branch experience,” Nitin Prabhu, head of Santander’s Digital Consumer Bank global business, said in a news release earlier this month.

“By leveraging Openbank’s advanced technology and Santander’s consumer finance expertise, we’re creating a more efficient and innovative digital-first bank ready for the future.

Also Wednesday, management said Santander’s payments division, PagoNxt, is performing strongly as well, with its EBITDA margin already exceeding the 2025 Investor Day target, reaching 32%.

A report Wednesday by The Wall Street Journal (WSJ) noted that Santander’s U.S. business also holds a substantial share of the auto finance sector, an area which has come under heightened scrutiny recently in the wake of two high-profile bankruptcies: that of parts supplier First Brands and subprime lender Tricolor.

WSJ said Santander floated a $77 million loan to First Brands although subsequent reports said that this exposure may be outside the bankrupt U.S. entity. When asked about it during the earnings call, Grisi said that this exposure wouldn’t be material for the bank.