- Underlying profit for Q1 2026, excluding M&A[1], was €3.6 billion, up 12%.
- Net interest income rose 4% and net fee income 6%, driven by higher activity.
- CET1 ratio reached 14.4%, supported by strong organic capital generation and the Poland disposal.
- TNAV plus cash dividend per share up 19%.
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- Revenue rose 4% to €15.1 billion, with strong net interest income (NII) and fee growth, due to higher customer activity and volumes across all global businesses[2].
- Loans and deposits grew 5% and 4%, respectively, in constant euros, reflecting solid commercial dynamics.
- Total costs decreased by 3%, reflecting efficiency gains from ONE Transformation, which continued to deliver structural operating leverage, supporting revenue growth while reducing cost-to-serve.
- As a result, the efficiency ratio improved to 42.8%, three percentage points lower than a year ago.
- Credit quality remained solid, with cost of risk at 1.14%. Other provisions recorded a €207 million gross charge related to motor finance in the UK.
- Attributable profit reached €5.5 billion, including a €1.9 billion net capital gain from the Poland disposal.
- Underlying return on tangible equity (RoTE) increased 0.5 percentage points to 15.2%.
- Santander reiterates its 2026–2028 targets assuming the current updated macroeconomic outlook[3].
- At the annual general meeting, shareholders approved a final cash dividend of 12.5 euro cents per share, payable on 5 May 2026, bringing the total cash dividend against 2025 results to 24 euro cents, up over 14% year-on-year.
Underlying business performance
All variations are year-on-year unless otherwise stated.
Banco Santander reported a record underlying profit of €3,560 million in the first quarter of 2026, up 12%, driven by the successful ongoing execution of ONE Transformation, including the continued deployment of shared global platforms that enable scalable growth and a lower cost-to-serve. Attributable profit reached €5.5 billion, up 60%, including a €1.9 billion net capital gain following the completion of the sale of Santander Bank Polska in January. Underlying results exclude non-recurring items and perimeter changes, which in this quarter consist of the capital gain from the sale of Poland, providing a consistent view of operating performance and enabling like-for-like comparison between periods1.
Santander continued to grow its customer base, adding eight million total customers in the last twelve months to reach 176 million, supported by strong commercial momentum and higher customer activity. For example, within Openbank, the digital bank has surpassed one million customers one year after launch in Mexico.
The bank continued to improve profitability and create value for shareholders, achieving an underlying return on tangible equity (RoTE) of 15.2% (+0.5 percentage points), with underlying earnings per share (EPS) up 17%. Tangible net asset value (TNAV) per share plus cash dividend increased 19%, reflecting sustained value creation driven by higher profitability and disciplined capital allocation.
Business volumes remained strong, with loans growing 5% and deposits increasing 4% in constant euros, supported by solid commercial dynamics across all businesses. There were notable increases in mortgages in Retail and auto lending in Openbank, while CIB activity remained solid.
Total revenue increased 4% to €15,140 million, supported by net interest income of €11,019 million (+4%) and net fee income of €3,357 million (+6%), driven by higher customer activity and volumes growth across all global businesses. Overall, the bank’s performance reflects the strength of its diversified and scalable business model, with c.95% of revenue linked to customer activity, providing stability despite a more challenging interest rate environment.
Total costs decreased 3% to €6,484 million, driven by continued efficiency gains from the execution of ONE Transformation. These efficiencies more than offset inflationary pressures and business growth investments, resulting in positive operating leverage. As a result, net operating income increased 10% to €8,656 million, and the efficiency ratio improved by three percentage points to 42.8%, in line with the structural trend of lower costs and higher revenue.
Loan-loss provisions increased 5% to €3,225 million, leading to a cost of risk of 1.14%, broadly stable year-on-year, reflecting resilient credit quality. Asset quality remains strong, supported by proactive risk management, diversified exposure across countries and segments and solid underlying credit performance. Other results and provisions recorded a €207 million provision related to potential motor finance complaints in the UK.
The CET1 capital ratio increased to 14.4%, up 1.5 percentage points in the last twelve months, supported by strong organic capital generation and the positive impact from the Poland disposal, providing significant flexibility to support growth and shareholder remuneration. Taking into account the expected impacts for the year (mainly the acquisitions of TSB and Webster), the bank is well positioned to meet its target of achieving a CET1 ratio of between 12.8% and 13% by year-end.
Santander continued to deliver attractive shareholder returns, with TNAV plus cash dividend per share up 19%, supported by both earnings growth and capital distributions. On 27 March 2026, the annual general meeting approved a final cash dividend of 12.5 euro cents per share, payable on 5 May 2026. Including the interim dividend of 11.5 euro cents paid in November 2025, total cash dividends against 2025 results increased by 14%.
In addition, on 3 February 2026, the board approved a second share buyback programme of up to around €5 billion, of which approximately €1.8 billion is against the second half of 2025 results, while €3.2 billion relates to an extraordinary distribution equivalent to around 50% of the CET1 capital generated from the sale of 49% of Santander Bank Polska. The programme[4] keeps the group on track to deliver its target of at least €10 billion in share buybacks across 2025 and 2026[5]. Overall, total shareholder remuneration against 2025 results amounts to c.€7.1 billion, equivalent to approximately 50% of the group’s attributable profit, split broadly evenly between cash dividends and share buybacks.
Outlook
Santander reiterates all 2026-28 targets presented last February at the Investor Day, assuming the current updated macroeconomic outlook3. 2026 targets include mid-single-digit revenue growth and lower costs in constant euros, higher profits and a CET1 ratio of 12.8-13%. The group expects revenue growth to be supported by continued customer activity, with net fee income growing faster than net interest income, while cost discipline and transformation initiatives will sustain positive operating leverage.
Beyond 2026, Santander expects double-digit revenue growth in constant euros in 2027, positive operating leverage and mid-teen profit growth in constant euros, while maintaining the CET1 ratio above 13%. The group also has 2028 targets, including a RoTE above 20%, attributable profit above €20 billion and more than 210 million customers, supported by scale, network effects and continuous improvements in capital productivity.
Global businesses (Q1 2026 vs Q1 2025)
Retail & Commercial Banking’s underlying profit grew 9% to €2,009 million, supported by commercial momentum, which drove higher net fee income, alongside disciplined cost control and efficiency gains from the common operating model. Loans grew by 2%, with expansion across most segments, mainly mortgages to individuals, while deposits rose by 5%, reflecting increased activity. ONE Transformation continues to progress at pace, with the customer interaction platform now live in five markets after being deployed in Mexico in Q1. Gravity is ready for rollout in Brazil during 2026. RoTE stood at 16.7%.
Openbank. The global consumer finance business, previously known as Digital Consumer Bank, which includes Santander’s digital-first Openbank, was renamed Openbank. In the first quarter, profit before tax would have reached €746 million (+15%) excluding the impact of the increase in provisions related to motor finance in the UK, supported by revenue growth across most markets, both in net interest income and fee income. Underlying profit decreased by 38% to €290 million, impacted by this provision and by the end of tax incentives for electric vehicles in the United States. The efficiency ratio and cost of risk stood at 42.8% and 2.07%, respectively. Loans increased 3%, driven by auto lending in Europe and Latin America, while deposits rose 3%, underpinned by continued focus on funding optimization.
CIB reported an underlying profit of €889 million (+16%), driven by higher net interest income (+37%) maintaining solid revenue (+15%), with strong activity levels across all business lines, particularly in Global Markets amid higher market volatility. The disciplined execution of our strategy, focused on growing advisory and capital-light businesses, further improved profitability, with RoTE at 20.9%, while maintaining a leading efficiency ratio of 39.6%.
Wealth Management & Insurance, which includes the private banking and insurance & asset management solutions businesses, increased its underlying profit by 11% to €493 million, supported by strong fee growth. Assets under management (AuMs) reached new record levels of €545 billion (+10%), driven by strong net new money in Private Banking (+11% in customer assets and liabilities) and Insurance & Asset Management Solutions (+8% in AuMs).
Payments, which brings together the group’s digital payment capabilities and delivers global technology solutions to internal businesses and third-party clients, generated an underlying profit of €20 million, supported by revenue growth, with double-digit net fee income growth, as the business continues to scale its global platforms and expand its integrated payments ecosystem. Getnet’s total payments volume increased 11%; Getnet Platforms (account-to-account and card processing platforms) processed four billion transactions, 10 times more than a year earlier, and Ebury increased its active customers by 32% to over 27,000.
Banco Santander is one of the largest banks in the world, with 185,000 employees serving 176 million customers, 3.5 million shareholders and €139 billion market capitalization.
[1] Figures are presented on a basis reflecting the changes made to the presentation of the Group’s financial information, effective from the first quarter of 2026 and communicated through Other Relevant Information filed with CNMV on 10 February. Therefore, underlying profit excludes the capital gain generated following the completion of the sale of Santander Bank Polska in January 2026 (recorded in non-recurring items in the first quarter of 2026), as well as the results of Santander Bank Polska in the first quarter of 2025 (recorded in non-recurring items in that quarter).
[2] All figures are year-on-year unless otherwise stated. Volumes (lending, deposits) in constant euros. Reconciliation of underlying results to statutory results, available in the ‘Alternative Performance Measures’ section of the financial report at CNMV and at santander.com.
[3] Targets market dependent. Based on macro assumptions aligned with international economic institutions. Targets assuming cost of risk stable. 2026 targets are set excluding Poland, TSB and Webster; 2027 targets including TSB and Webster. CET1 ratio targets including all the impacts from inorganic transactions.
[4] The current buyback programme has been temporarily suspended between 24 April and 26 May 2026, ahead of Webster’s stockholders’ meeting, at which the acquisition of the US bank by Santander will be voted on, in line with regulatory requirements.
[5] The board of directors intends to: i) apply an ordinary shareholder remuneration policy for 2026 to 2028 results that entails allocating approximately 50% of the Group’s underlying profit (excluding non-cash, non-capital ratios impact items), split approximately evenly between cash dividends and share buybacks for 2026 results; and additionally ii) distribute excess capital at the end of the 2026-2028 period to shareholders. From 2027 results on, the ordinary shareholder remuneration policy is expected to comprise around 35% of Group underlying profit (on the same basis) in cash dividends and around 15% in share buybacks. Execution of the shareholder remuneration policy and of the distribution to shareholders of excess capital at the end of the 2026-2028 period is subject to future corporate and regulatory decisions and approvals.
We have made a strong start to the year, adding eight million customers year-on-year. Revenue is up 4% and costs down 3%, with ONE Transformation driving consistent quarter-on-quarter improvements in operating leverage. Our geographic and balance sheet diversification, together with disciplined risk management, remain key strengths amid heightened geopolitical uncertainty, enabling us to deliver resilient and profitable growth. Looking ahead, we expect this performance to continue, supported by growth in both total and active customers, while further leveraging our global and in-market scale to transform our operating model. This will support higher profitability and sustained value creation. We reiterate all our targets for 2026 and our three-year plan, based on our current updated macroeconomic outlook.
