Banco Santander SA (SAN) shares surged 5.67% in Wednesday's trading session, driven by a positive research note from Citi highlighting the bank's reassuring message on its U.S. auto finance business and stable asset quality at the group level.

According to Citi's analysts, Santander's third-quarter profit exceeded expectations, while its capital position was broadly in line with forecasts. The Spanish bank's report of "resilient auto customer behavior" in its U.S. division was particularly noteworthy, alleviating recent concerns in this segment. This positive development appears to have boosted investor confidence, contributing to the significant stock price increase.

Looking ahead, market participants are expected to focus on asset-quality developments in the U.S. and Brazil during the upcoming call with Santander's management. Additionally, investors will be keen to learn about potential value levers that may be unveiled at the bank's February investor day. Citi analysts noted that Santander's stock has outperformed over the last three months, setting a relatively high bar for these results. This strong performance suggests that investors have been increasingly optimistic about the bank's prospects, culminating in today's notable price movement.