Banco Santander (SAN) Investor Day 2026 summary

Strategic direction, transformation, and business model

• Transitioning to a globally aligned, simplified operating model with fewer products, more automation, and common technology platforms to drive efficiency and customer experience.

• ONE Transformation initiative and digitalization aim for 70% of products/services to be digitally available by 2025, enhancing operational efficiency and product simplification.

• Network businesses (CIB, Wealth, Payments) and bolt-on acquisitions (TSB, Webster) are central to growth, diversification, and integration.

• AI and technology integration, with over €2 billion invested annually, are embedded to enhance productivity, personalization, and cross-sell opportunities.

• Strategy remains focused on being the best open global financial services platform, with a strong commitment to responsible banking and supporting the transition to a green economy.

Financial targets, performance, and guidance

• Profit targeted to exceed €20 billion by 2028, with RoTE above 20% and double-digit EPS growth from 2026-2028.

• Ordinary payout maintained at 50%, with cash dividend payout rising to 35% from 2027, more than doubling cash DPS by 2028 versus 2025.

• CET1 ratio expected to remain around 13% through 2028, with excess capital above this level to be distributed to shareholders.

• Value creation (TNAV plus dividends per share) set to accelerate to high teens by 2028, up from previous double-digit targets.

• 2025 attributable profit reached €14.1 billion, with EPS up 68% and TNAV plus dividend per share up 14% annually over 2023-2025.

Operational efficiency and cost management

• Cost base targeted to fall below €27 billion by 2028, with an efficiency ratio near 36% and €4-5 billion in structural efficiencies.

• Cost per active customer to fall to €220 by 2028, with fees per active customer rising to €135.

• Personnel costs to decline from 63% of total expenses in 2025 to 50% by 2028, reflecting transformation and automation.

• AI and tech investments expected to deliver €700 million in cost reductions, €300 million in revenue enhancements, and over €1 billion in annual business value by 2028.

• Integration of TSB and Webster to deliver €1.2 billion in synergies, with bolt-ons contributing to sustainable profit growth.