Banco Santander stock holds targets after profit rises 16%

Banco Santander reported record underlying profit of 11.176 billion euros for the first nine months of 2026, up 16% year on year. The figures released on October 28 also showed revenue growth and unchanged full-year targets, keeping profitability and capital returns at the center of the investment case.

At 10:06 CET on Thursday, November 5, Banco Santander stock traded at 11.02 euros on Lang & Schwarz. The real-time quote of Banco Santander stock is available separately.

Operating Momentum Remains Strong

According to Santander's financial results release, attributable profit reached 12.405 billion euros, an increase of 20%. That figure included a 1.9 billion euro net capital gain from the disposal of Santander Bank Polska, partly offset by 666 million euros of charges linked in part to the integration of TSB and Webster. The underlying measure excludes those non-recurring items and is intended to show operating performance more consistently.

Revenue rose 8% to 46.807 billion euros. Net interest income increased 10% to 34.614 billion euros, while net fee income gained 9% to 10.349 billion euros. The bank said customer activity, higher volumes and deeper relationships supported the expansion. Its customer base grew by 17 million over twelve months to 189 million, including eight million customers added through TSB and Webster.

Efficiency also improved. Costs fell 1% excluding those acquisitions, net operating income increased 14% to 26.882 billion euros and the efficiency ratio improved to 42.6%. Underlying return on tangible equity reached 16.0%, while statutory earnings per share rose 25%.

Targets And Capital Returns

Santander kept its 2026 targets, excluding the impact of mergers and acquisitions. The group still expects mid-single-digit revenue growth, lower costs in constant euros, profit above the 14.1 billion euros reported in 2025 and a year-end CET1 ratio between 12.8% and 13%. The CET1 ratio stood at 12.7% at the end of September, with the Webster acquisition weighing on capital.

The bank also maintained its longer-term plan. By 2028, Santander targets return on tangible equity above 20%, profit above 20 billion euros and more than 210 million customers. The outlook depends on market conditions and assumes a stable cost of risk.

Shareholder remuneration remains a further support for the investment narrative. Santander paid an interim cash dividend of 0.127 euros per share on November 2, 10% more than the comparable 2025 payment. The bank said total remuneration linked to first-half 2026 results would amount to about 3.660 billion euros, while its buyback programme against first-half results was worth up to about 1.8 billion euros.

The IBEX 35 market environment remains relevant for the Spanish banking group, although Santander's earnings are spread across several international businesses.

Further details will come with Santander's fourth-quarter 2026 earnings presentation scheduled for February 3, 2027. More news and analyses on Banco Santander stock will track progress against the bank's profit, capital and shareholder-return targets.