Banco Santander (SAN) Q2 2026 earnings summary

Executive summary

• Underlying profit rose 15% year-over-year to €7.3 billion in H1 2026, with attributable profit up 31% to €8.97 billion, including a €1.9 billion capital gain from the Poland disposal and €250 million in TSB integration costs.

• Revenue increased 6% to €30.8 billion, driven by strong net interest income (+7%) and net fee income (+9%) from higher customer activity and volumes.

• Customer base expanded by 12 million to 182 million, supported by the TSB acquisition, which added over four million customers.

• The TSB acquisition was completed, strengthening the UK franchise and expected to deliver at least £400 million in cost synergies by 2028.

• Disciplined capital allocation and organic capital build, with CET1 at 14.0% after absorbing TSB, and TNAVps plus cash DPS up 19%.

Financial highlights

• Net interest income reached €22.7 billion (+7% YoY), net fee income was €6.85 billion (+9% YoY), and total revenue increased 6% to €30.8 billion.

• Underlying attributable profit was €7.3 billion (+15% YoY), with attributable profit including non-recurring items at €8.97 billion (+31% YoY).

• Loans grew 9% and customer funds 11% in constant euros, with strong momentum across global businesses and TSB integration.

• Total costs declined 1% YoY (down 2% in constant euros ex-TSB), improving the efficiency ratio by 2.9 percentage points to 42.8%.

• Underlying EPS rose 20%, and tangible net asset value plus cash dividend per share increased 19%.

Outlook and guidance

• On track to deliver more than €14.1 billion profit in 2026, with CET1 ratio expected to end the year in the 12.8–13% range.

• By 2028, aims for RoTE above 20%, profit above €20 billion, and over 210 million customers.

• Shareholder remuneration policy targets 50% payout (cash dividends and buybacks) for 2026–2028, with excess capital to be distributed at the end of the plan.

• Cost of risk expected to remain around 1.15% for 2026, with improvement anticipated in Argentina and stable trends in Brazil and the U.S.

• NII trends in Spain and group-wide expected to remain strong in H2, with positive sensitivity to rates.