Banco Santander Reports Strong Q1 2026 Results with Double-Digit Profit Growth and Reaffirms Full-Year Targets

summarizeSummary

Banco Santander reported a 12% increase in underlying profit to €3.6 billion for Q1 2026, with revenue up 4% and costs down 3%, leading to an improved efficiency ratio and a strong CET1 capital ratio of 14.4%. The bank reaffirmed its 2026-2028 targets and approved a final cash dividend.

check_boxKey Events

• Strong Q1 2026 Financial Performance

  Underlying profit for Q1 2026 increased by 12% to €3.6 billion (constant euros), with attributable profit reaching €5.5 billion, up 60%, including a €1.9 billion net capital gain from the Poland disposal. Revenue rose 4% to €15.1 billion, driven by higher net interest income and fee growth.

• Improved Efficiency and Capital Position

  Total costs decreased by 3%, leading to an improved efficiency ratio of 42.8%. The CET1 capital ratio strengthened to 14.4%, up 1.5 percentage points year-on-year, supported by strong organic capital generation.

• Reaffirmed 2026-2028 Targets

  Santander reiterated all its 2026-2028 targets, including mid-single-digit revenue growth, lower costs, higher profits, and a CET1 ratio of 12.8-13% for 2026, signaling confidence in its strategic execution.

• Shareholder Remuneration Details

  Shareholders approved a final cash dividend of 12.5 euro cents per share, payable on May 5, 2026, bringing the total cash dividend against 2025 results to 24 euro cents. The €5 billion share buyback program, temporarily suspended from April 24 to May 26, 2026, ahead of the Webster acquisition vote, remains on track for its overall target.

auto_awesomeAnalysis

Banco Santander delivered robust first-quarter results, showcasing significant underlying profit growth and improved operational efficiency. The bank's strategic 'ONE Transformation' initiative continues to drive cost reductions and positive operating leverage, contributing to a stronger capital position. The reiteration of all 2026-2028 targets provides confidence in the company's future outlook, despite the temporary suspension of the share buyback program related to the pending Webster Financial Corporation acquisition, which was previously disclosed. The strong capital generation and shareholder remuneration plan, including a substantial dividend and ongoing buyback, underscore the bank's commitment to returning value to investors.