Banco Santander stock: Nine-month profit rises as targets hold

Banco Santander reported record underlying profit for the first nine months of 2026 on October 28, while keeping its full-year targets unchanged. The bank said strong customer activity and its ONE Transformation program supported higher revenue, lower costs excluding acquisitions and improved efficiency.

According to the Santander press release, underlying profit reached 11.176 billion euros in January through September, up 16% year on year. Attributable profit rose to 12.405 billion euros, up 20%, but included a 1.9 billion euro net capital gain from the completed disposal of Santander Bank Polska and 666 million euros of charges, including integration costs for TSB and Webster.

Revenue And Efficiency Improve

Total revenue increased 8% to 46.807 billion euros. Net interest income rose 10% to 34.614 billion euros, while net fee income gained 9% to 10.349 billion euros. The bank said roughly 95% of group revenue is linked to customer activity, making volume growth and deeper customer relationships important drivers for the outlook.

Costs fell 1% excluding TSB and Webster, or 2% in constant euros. Net operating income increased 14% to 26.882 billion euros, and the efficiency ratio improved by 2.8 percentage points to 42.6%. Underlying return on tangible equity reached 16.0%, up 1.1 percentage points, while statutory earnings per share increased 25%.

Santander added 17 million customers over the previous twelve months, taking the total to 189 million. Eight million of the additions came from TSB and Webster after the acquisitions were completed. Loans and customer funds each increased 16% in constant euros; excluding acquisitions, loans rose 6% and customer funds gained 8%.

Capital Returns Stay In Focus

The CET1 ratio stood at 12.7% at the end of September after the Webster acquisition. Santander said it remained on track for a year-end ratio of 12.8% to 13%. The board approved an interim cash dividend of 12.70 euro cents per share against 2026 results, paid on November 2, and the bank was conducting a share buyback of up to 1.8 billion euros against first-half results.

Total shareholder remuneration against first-half 2026 results is expected to reach approximately 3.660 billion euros, equivalent to about half of first-half underlying profit. Santander said it had delivered approximately 9 billion euros toward a plan to distribute at least 10 billion euros through buybacks against 2025 and 2026 results and excess capital.

Santander stock traded at 10.82 euros on Lang & Schwarz at 11:00 CET on Monday, November 9, 2026. The real-time quote of Banco Santander stock provides the latest trading reference.

Targets Set The Next Test

Management reiterated its 2026 targets for mid-single-digit revenue growth, lower costs in constant euros, profit above the 14.1 billion euros reported for 2025 and a CET1 ratio between 12.8% and 13%. The targets exclude the impact of Poland, TSB and Webster and remain dependent on market conditions.

The bank also retained its 2028 ambitions of return on tangible equity above 20%, profit above 20 billion euros and more than 210 million customers. For investors, the next test is whether customer growth, cost discipline and capital generation can carry the stronger nine-month performance through the final quarter.

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