Santander on Wednesday announced 10 billion euros ($10.40 billion) in share buybacks for 2025 and 2026 and forecast higher profitability on the back of stronger growth in its U.S. consumer unit and efficiency gains.

Shares in Spain’s biggest bank by assets were sharply higher after its results, and it said it was confident it would be able to boost profitability again in 2025, raising a target despite projecting broadly stable revenue for the year.

Spanish banking giant Santander announced record annual profits for a third consecutive year on Wednesday as a strong commercial performance offset the impact of falling interest rates.

Santander has said that it intends to return €10bn to investors over the next two years through buybacks after reporting record annual profits. The Spanish lender posted an 11 per cent increase in quarterly net profit from a year earlier to €3.