Banco Santander (SAN) Investor Day 2026 summary

Strategic transformation, vision, and business model

• Shifted to a globally aligned, simplified operating model with fewer products, more automation, and common technology platforms, driving customer growth and cost reduction.

• Transitioned from a fragmented, product-led model to a global, customer-driven platform, leveraging global businesses and network effects for value creation.

• Maintains strategy as an open global financial services platform, focusing on customer growth, responsible banking, and supporting the transition to a green economy.

• ONE Transformation initiative and Gravity 2.0 drive operational efficiency, digitalization, and product simplification, with 70% of products/services digitally available by 2025.

• AI and technology integration are embedded to enhance customer experience, efficiency, and cross-sell opportunities.

Financial targets and shareholder returns (2026–2028)

• Targets profit above €20 billion and RoTE above 20% by 2028, with double-digit EPS growth and high-teens TNAV plus dividend per share growth.

• Ordinary payout maintained at 50%, with cash dividend payout rising to 35% from 2027; cash DPS to more than double by 2028.

• CET1 ratio expected around 13% by 2028, with excess capital above 13% returned to shareholders.

• Shareholder remuneration for 2026–2028 includes at least €10 billion in buybacks from 2025–2026 earnings.

• TNAVps plus DPS expected to accelerate to high teens by 2028.

Operational transformation and efficiency improvements

• Active customers targeted to rise to about 125 million by 2028, with total customers surpassing 210 million.

• Cost per active customer to fall by 17% by 2028, with efficiency ratio improving to around 36% (retail/commercial below 34%).

• ONE Transformation and technology initiatives expected to deliver €4–5 billion in cost synergies by 2028, including TSB and Webster integrations.

• AI and data initiatives to generate over €1 billion in annual business value by 2028, improving cost-to-income ratio by about 1 percentage point.

• Personnel costs to decline from 63% to 50% of expenses by 2028, reflecting automation and platform consolidation.