Banco Santander (SAN) investor relations material

Executive summary

• Attributable profit reached €5.5bn in Q1 2026, up 60% year-over-year, driven by a €1.9bn capital gain from the Poland disposal and strong underlying business performance.

• Underlying profit was €3.6bn, up 12% year-over-year, supported by revenue growth, cost discipline, and digital transformation.

• Added 8 million new customers year-over-year, reaching 176 million, with strong commercial and digital momentum.

• Efficiency ratio improved to 42.8%, down 3 percentage points year-over-year, reflecting cost reductions and transformation initiatives.

• Continued execution of the ONE Transformation program, leveraging technology and network businesses for efficiency and profitability.

Financial highlights

• Total revenue rose 4% year-over-year to €15.1bn (+6% in constant euros), with net interest income up 5% and net fee income up 7%.

• Total costs decreased 3% year-over-year, improving the efficiency ratio to 42.8%.

• Underlying ROTE increased to 15.2%, and CET1 capital ratio reached 14.4%, up 1.5pp year-over-year.

• Cost of risk stable at 1.14%; NPL ratio at 3.00% with coverage ratio at 66%.

• Underlying EPS up 17%, TNAV plus cash dividend per share up 19%.

Outlook and guidance

• 2026 targets: mid-single-digit revenue growth, lower costs, higher profits, CET1 ratio of 12.8–13%, and double-digit annual growth in TNAVps + DPS.

• 2028 targets: underlying profit above €20bn, ROTE above 20%, and over 210 million customers.

• Shareholder remuneration policy aims for 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 remain above 12.8% at year-end, despite regulatory headwinds.

• Customer growth targeted to exceed 210 million total and 125 million active customers by 2028.