Banco Santander added 17 million customers year-on-year, lifting underlying profit by 16% to €11.2 billion in the first nine months of 2026. The bank described the nine-month underlying profit of €11,176 million as a record.
Underlying profit in the third quarter alone reached €3.8 billion, up 19%, helped by contributions from recently acquired lenders in Britain and the US. Attributable profit rose 20% to €12,405 million, including a €1.9 billion net capital gain from completing the disposal of Santander Bank Polska in January, partly offset by €666 million in charges that include integration costs associated with TSB and Webster.
CUSTOMERS AND BUSINESS LINES
The customer base grew to 189 million over the last twelve months, including eight million customers from TSB and Webster after the acquisitions were completed on 30 April and 20 August respectively. Loans and customer funds both increased 16% in constant euros; excluding these acquisitions, loans increased by 6% and customer funds by 8%.
With changes in constant euros, Retail & Commercial Banking's underlying profit grew 12% to €6,445 million. CIB reported underlying profit of €2,433 million (+15%), and Wealth Management & Insurance increased its underlying profit by 19% to €1,651 million.
SCALE AND A CAUTIOUS MARKET
Santander is one of the world's largest banks, with 186,000 employees and a market capitalisation of €179 billion at the end of September 2026, according to the bank. The Webster acquisition, completed on 20 August, strengthened its US franchise and expanded its customer base by 4.2 million customers, and the three-year plan set out at its Investor Day last February targets, by 2028, a RoTE above 20%, profit above €20 billion and more than 210 million customers.
European banks have enjoyed record profits since 2024, fuelled by higher interest rates, but banking stocks have fallen about 10% over the past month amid concerns over lenders' exposure to euro zone government debt and a weakening economic outlook. Santander was among the lenders that beat third-quarter profit forecasts, yet its shares dropped 4.2% on Wednesday, and its results were clouded by weaker earnings and higher provisions in Brazil.
PROFITABILITY, CREDIT AND CAPITAL
Underlying return on tangible equity was 16.0%, up 1.1 percentage points, and statutory earnings per share increased 25%. Total revenue increased 8% to €46,807 million, with net interest income up 10% to €34,614 million and net fee income up 9% to €10,349 million.
Total costs fell 1% excluding TSB and Webster, reflecting continued efficiency gains from ONE Transformation, the group's programme to move to a common operating model built on shared global platforms. Net operating income increased 14% to €26,882 million and the efficiency ratio improved by 2.8 percentage points to 42.6%.
Loan-loss provisions increased 13%, mainly reflecting broader market trends in Argentina, and the cost of risk was 1.16%. The non-performing loan ratio improved to 2.90%, with a coverage ratio of 64%. The CET1 capital ratio stood at 12.7%; excluding the 147 basis point impact of the Webster acquisition, the ratio increased 14 basis points in the quarter.
SHAREHOLDER RETURNS AND TARGETS
In September the board approved an interim cash dividend of 12.70 euro cents per share, 10% higher than its 2025 equivalent, to be paid on 2 November, and in August the bank launched a share buyback programme of up to about €1.8 billion. Total shareholder remuneration against H1 2026 results will be approximately €3,660 million, 8% higher than a year earlier.
Santander's 2026 targets are mid-single-digit revenue growth, lower costs in constant euros, profit above the €14.1 billion reported in 2025 and a CET1 ratio between 12.8% and 13%, and it remains on track to meet its year-end CET1 target. "We once again delivered strong results in the first nine months, with earnings per share up 25% and growing momentum across the group," said Ana Botín, Banco Santander executive chair.
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