It was fantastic five years Santander Bank (LSE: BNC) Shareholders. At that time, Spanish banking shares increased by 216%, changing every 10,000 GBP invested at the time to £ 31,600.

In addition, there was a constant flow of growing dividends since they resumed in 2021 (outflows were stopped during a pandemic). Including them, a five -year total return increases to almost 34,000 pounds! Lovely.

Solid operational results

Santander’s interest income – profit achieved from basic loan and loan activities – was topped up by higher interest rates in Great Britain, USA, Europe and part of Latin America. In 2024, the bank recorded a net profit of EUR 12.57 billion, by 14% year on year.

The momentum lasted in the first quarter of 2025, with a profit of 19% to EUR 3.4 billion (or 10%, excluding one -off profit). Strong net interest income in Spain and Mexico will compensate for weaker margins in Brazil and Great Britain.

Return from physical equity – a key profitability indicator – increased to a robust 15.8%, while capital buffers remained robust with a CET1 ratio of 12.9%. The bank continued the purchase of shares and remains on the right track to buy back at least EUR 10 billion in its own shares in 2025 and 2026.

Finally, the company added 9 million modern customers, including quarter, increasing the total 175 million worldwide.

Extension in Great Britain

This number will probably escalate, because in July Santander announced the takeover of TSB worth 2.65 billion GBP from Sabadell. After completing, both banks will serve almost 28 million retail and business clients throughout the country.

It is expected that the profit per share will escalate immediately before it adds about 4% to 2028, and the lender expects to generate at least 400 million pounds of annual synergy of costs against taxation.

The takeover further strengthens Santander’s position on one of the main markets, expanding the customer base and loan skills in Great Britain.

The takeover of this Santander will become the third largest bank in Great Britain according to the personal balances of current accounts and the fourth on the mortgage market.

Latin America

One of the things I like is the positioning of Santander in Latin America, where millions of previously unspecified people join the financial system through digital accounts.

However, while the demand for credit cards, personal loans and financing of tiny companies has exploded, credit penetration is still relatively low compared to developed markets. So there is a long growth runway, from which Santander is well placed, which they will utilize.

Nevertheless, it is so that Latin America remains an unstable region. Currency swings, economic instability and high inflation may charge the reported earnings.

There is also growing competition from agile digital banks, such as Nubank (Now Holdings), Payment market (Mercadolibre) and Revolut. So Santander will have to work difficult to remain competitive.

Should I buy Santander shares?

Despite the robust share price, Santander looks reasonable to me. Actions trad up with only 8.2 -earnings forward.

To say, the dividend performance is about 3.4%, which is lower than FTSE 100 Banks like Lloyds (4.9%) i HSBC (5.5%).

I already have HSBC shares in my portfolio for income, as well as fintechs nu and mercadolibre for growth in Latin America. I am also not going to add Santander to the mix.

However, shares are at a reasonable price, so investors may want to consider Santander for their own wallets.