Banco Santander (SAN) Q2 2026 earnings summary

Executive summary

• Underlying profit rose 15% year-over-year to €7.3 billion in H1 2026, with attributable profit up 31% to €8.97 billion, including a €1.9 billion capital gain from the Poland disposal and €250 million in TSB integration costs.

• Revenue increased 6% to €30.8 billion, driven by strong net interest income (+7%) and net fee income (+9%) from higher customer activity and volumes.

• Customer base expanded by 12 million to 182 million, supported by the TSB acquisition, which added over four million customers.

• Completed TSB acquisition in the UK for GBP 2.9 billion, fully integrated from May 2026, impacting CET1 by -55 bps and expected to deliver at least £400 million in cost synergies.

• Announced acquisition of Webster Financial in the US for USD 12.2 billion, pending regulatory approval.

Financial highlights

• H1 2026 profit attributable to the parent: EUR 8,973 million (+31% YoY), including Poland disposal gain.

• Underlying attributable profit: EUR 7,328 million (+15% YoY), driven by revenue and cost discipline.

• Net interest income: EUR 22,711 million (+7% YoY); net fee income: EUR 6,851 million (+9% YoY).

• Total income: EUR 30,847 million (+6% YoY); efficiency ratio improved to 42.8% (-3 pp YoY).

• Loans and advances to customers: EUR 1,149 billion (+14% YoY); customer funds: EUR 1,297 billion (+13% YoY).

• Underlying EPS grew 20% YoY; tangible net asset value plus cash dividend per share increased 19%.

• CET1 ratio: 14.0% (down 0.4 pp QoQ due to TSB acquisition); leverage ratio: 4.81%.

• Cost of risk: 1.15%; NPL ratio: 2.93%; NPL coverage: 64%.

• Market capitalization: EUR 178 billion (+72% YoY); share price: EUR 12.08 (+72% YoY).

Outlook and guidance

• On track to meet 2026 targets: mid-single-digit revenue growth, lower costs in constant euros, underlying profit above €14.1 billion, and CET1 ratio between 12.8% and 13%.

• By 2028, aims for RoTE above 20%, profit above €20 billion, and over 210 million customers.

• Shareholder remuneration policy targets 50% payout (cash dividends and buybacks) for 2026–2028, with excess capital to be distributed at the end of the plan.

• CET1 ratio expected to end 2026 in the 12.8–13% range, at the top end of the operating range.

• Revenue growth expected to be supported by customer activity, with net fee income outpacing net interest income.