Banco Santander, S.A. (SAN): Financial results for 9M 2026
Banco Santander, S.A. (SAN) furnished an SEC Form 6-K — earnings release. BANCO SANTANDER, S.A. ________________________ TABLE OF CONTENTS Item 1. Press Release regarding January - September 2026 Results Corporate Communications Ciudad Grupo Santander, edificio Arrecife, planta 2 28660 Boadilla del Monte (Madrid) comunicacion@gruposantander.com www.san
How this was made
The 30-second read
Why it matters
The earnings beat and 25% EPS increase provide fresh material for traders, likely prompting buying interest.
Market read
First‑report earnings for a large‑cap bank, offering new data that can move the stock and influence the sector.
What to watch
Higher loan-loss provisions and exposure to Argentina could temper upside despite profit growth.
Santander reported record underlying profit of €11,176 million for the first nine months of 2026, up 16%, as total income grew 8% and net operating income rose 14%.
Underlying profit rose 16% to €11,176 million, total income increased 8%, net operating income rose 14%, and the bank reiterated its 2026 targets. Statutory attributable profit increased 20% to €12,405 million, including a €1.9 billion capital gain from the Poland disposal partly offset by €666 million of M&A-related charges.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| 9M 2026 total incomenon-GAAP | €46.81B | – | +8% (+7% ex FX) |
| Q3 2026 total incomenon-GAAP | €15.96B | – | +12% (+8% ex FX) |
| 9M 2026 net interest incomenon-GAAP | €34.61B | – | +10% (+7% excluding M&A) |
| 9M 2026 net fee incomenon-GAAP | €10.35B | – | +9% (also +9% excluding M&A) |
| 9M 2026 total costsnon-GAAP | EUR -19,925 million | – | +2% (0% ex FX) |
| Q3 2026 total costsnon-GAAP | EUR -6,714 million | – | +5% (+2% ex FX) |
| 9M 2026 net operating incomenon-GAAP | €26.88B | – | +14% (+12% ex FX) |
| Q3 2026 net operating incomenon-GAAP | €9.25B | – | +17% (+13% ex FX) |
| 9M 2026 efficiency rationon-GAAP | 42.6% | – | improved by 2.8 percentage points |
| 9M 2026 net loan-loss provisionsnon-GAAP | EUR -10,060 million | – | +13% (+10% ex FX) |
| Q3 2026 net loan-loss provisionsnon-GAAP | EUR -3,486 million | – | +22% (+17% ex FX) |
| 9M 2026 cost of riskother | 1.16% | – | – |
| 9M 2026 profit before taxnon-GAAP | €15.77B | – | +13% (+11% ex FX) |
| Q3 2026 profit before taxnon-GAAP | €5.42B | – | +16% (+12% ex FX) |
| 9M 2026 underlying profitnon-GAAP | €11.18B | – | +16% (+14% ex FX) |
| Q3 2026 underlying profitnon-GAAP | €3.85B | – | +19% (+14% ex FX) |
| 9M 2026 non-recurring itemsnon-GAAP | €1.23B | – | +72% (+72% ex FX) |
| Q3 2026 non-recurring itemsnon-GAAP | EUR -416 million | – | – |
| 9M 2026 attributable profitGAAP | €12.40B | – | +20% (+18% ex FX) |
| Q3 2026 attributable profitGAAP | €3.43B | – | -2% (-5% ex FX) |
| 9M 2026 underlying return on tangible equitynon-GAAP | 16.0% | – | +1.1 percentage points |
| 9M 2026 statutory earnings per share growthGAAP | +25% | – | +25% |
| 9M 2026 TNAV plus cash dividend per share growthother | +11% | – | +11% |
| Loans growthother | +16% in constant euros | – | +16% in constant euros |
| Customer funds growthother | +16% in constant euros | – | +16% in constant euros |
| Non-performing loan ratioother | 2.90% | -3 basis points | – |
| Coverage ratioother | 64% | – | – |
| CET1 capital ratioother | 12.7% | – | – |
| Retail & Commercial Banking underlying profitnon-GAAP | €6.45B | – | +12% in constant euros |
| Openbank profit before tax excluding UK motor finance provisionsnon-GAAP | €2.54B | – | +13% in constant euros |
| Openbank underlying profitnon-GAAP | €1.41B | – | – |
| CIB underlying profitnon-GAAP | €2.43B | – | +15% in constant euros |
| Wealth Management & Insurance underlying profitnon-GAAP | €1.65B | – | +19% in constant euros |
| Payments underlying profitnon-GAAP | €105M | – | more than double the previous year |
2026 outlook
- Revenuemid-single-digit revenue growth in constant euros
- Operating expenseslower costs in constant euros
- Noteprofit above the €14.1 billion reported in 2025
- NoteCET1 ratio between 12.8% and 13%
- Noteby 2028, the group targets a RoTE above 20%
- Noteby 2028, the group targets profit above €20 billion
- Noteby 2028, the group targets more than 210 million customers
Capital returns
- The 2026 interim cash dividend of 12.70 euro cents per share will be paid on 2 November.
- The interim cash dividend is 10% higher than its 2025 equivalent.
- Santander launched a share buyback programme of up to c.€1.8 billion against H1 2026 results.
- Total shareholder remuneration against H1 2026 results will be approximately €3,660 million, 8% higher than a year earlier and equivalent to about 50% of H1 underlying profit.
- Total share buybacks as of 9M’26 include a €1.7bn share buyback against H1’25 results, a €1.8bn share buyback against H2’25 results, a €3.2bn additional share buyback following the Poland transaction, and a €1.8bn share buyback against H1’26 results.
- With the H1 2026 programme, Santander will have delivered c.€9 billion towards its plan to distribute at least €10 billion through share buybacks against 2025 and 2026 results and excess capital.
What drove it
- Santander added 17 million customers over the last twelve months to 189 million, including eight million customers from TSB and Webster.
- Total revenue grew on strong net interest income and net fee income, reflecting higher customer activity, deeper customer relationships and business-volume growth.
- Around 95% of group revenue is linked to customer activity.
- ONE Transformation supported lower costs excluding M&A, higher revenue and an improvement in the efficiency ratio to 42.6%.
- AI generated €194 million of business value during 2026 through higher revenue, lower costs and lower loan-loss provisions.
- Net loan-loss provisions were affected mainly by broader market trends in Argentina; excluding Argentina, provisions increased 6% in constant euros.
- Retail & Commercial Banking benefited from higher activity, net fee income, lower costs and global-platform efficiency gains.
- CIB revenue increased 14%, particularly in Global Banking and Global Markets.
- Wealth Management & Insurance benefited from client inflows and fee-generating activities.
- Payments revenue increased 15%; Getnet total payment volume increased 9%, and Getnet Platforms processed 14 billion account-to-account and card transactions.
Concerns
- Net loan-loss provisions increased 13%, mainly reflecting broader market trends in Argentina.
- Openbank underlying profit was affected by UK motor finance provisions and the end of electric vehicle tax incentives in the US in 2025.
- Attributable profit included a €1.9 billion net capital gain from the disposal of Santander Bank Polska and €666 million of charges, including integration costs associated with TSB and Webster.
- The 2026 targets exclude the impact of M&A in 2025 and 2026, while TSB and Webster affect balance-sheet comparisons with prior periods.
- The CET1 ratio of 12.7% followed the -147 basis point impact from the Webster acquisition.
What to watch
- Delivery of mid-single-digit revenue growth and lower costs in constant euros during 2026.
- Progress toward profit above the €14.1 billion reported in 2025.
- CET1 ratio progression toward the 12.8% to 13% year-end target.
- Integration benefits from TSB and Webster, including the customer, deposit-base and operating-performance contribution.
- The path of loan-loss provisions, particularly market trends in Argentina and UK motor finance provisions.
- The mix between net fee income and net interest income, with net fee income expected to grow faster than net interest income.
Balance sheet and cash flow
- The CET1 capital ratio stood at 12.7%.
- The Webster acquisition had a -147 basis point impact on the CET1 ratio.
- Excluding the Webster acquisition, the CET1 ratio increased 14 basis points in the quarter, with 19 basis points of net organic capital generation.
- Loans and customer funds both increased 16% in constant euros.
- Excluding acquisitions, loans increased 6% and customer funds increased 8%, while deposits increased 6%, in constant euros.
- The non-performing loan ratio was 2.90%, down 3 basis points from the previous quarter, and the coverage ratio was 64%.
- Assets under management reached €588bn, up 11%.
- Insurance gross written premiums increased 20% to €10 billion.
Analysis
Santander delivered a strong nine-month operating result. Underlying profit increased 16% to €11,176 million, while total income rose 8% to €46,807 million and net operating income increased 14% to €26,882 million. The growth was supported by net interest income of €34,614 million, up 10%, and net fee income of €10,349 million, up 9%. Management stated that around 95% of group revenue is linked to customer activity, and the customer base expanded by 17 million over the last twelve months to 189 million.
Operating leverage was a central feature of the period. Total costs were EUR -19,925 million, up 2% on the reported basis but flat ex FX, while Santander said costs fell 1% excluding TSB and Webster. The efficiency ratio improved by 2.8 percentage points to 42.6%. ONE Transformation was identified as the source of structurally lower costs and higher revenue, and AI generated €194 million of business value during 2026.
Credit costs increased faster than income. Net loan-loss provisions rose 13% to EUR -10,060 million, mainly due to broader market trends in Argentina, although the increase was 6% in constant euros excluding Argentina and management said this was in line with organic loan growth. The cost of risk was 1.16%, the non-performing loan ratio improved by 3 basis points sequentially to 2.90%, and the coverage ratio was 64%. Loans and customer funds both increased 16% in constant euros, though acquisitions materially contributed to those growth rates.
Statutory attributable profit increased 20% to EUR 12,405 million, but it included a €1.9 billion net capital gain from the Poland disposal, partly offset by €666 million of integration and intangible-impairment charges related to TSB and Webster. The CET1 ratio stood at 12.7% after the Webster acquisition, which had a -147 basis point impact. Santander reiterated its 2026 targets of mid-single-digit revenue growth, lower costs in constant euros, profit above €14.1 billion and a CET1 ratio between 12.8% and 13%, all with the stated M&A exclusions for P&L targets.
Management, verbatim
We once again delivered strong results in the first nine months, with earnings per share up 25% and growing momentum across the group.
Ana Botín, Banco Santander executive chair
Alongside this commercial growth, ONE Transformation continued to improve our operating model, supporting top-line growth and lower costs (excluding M&A), while AI generated €194 million of business value during 2026.
Ana Botín, Banco Santander executive chair
The benefits of our TSB and Webster acquisitions are only beginning to come through and will support continued strong operating and financial performance in the years ahead.
Ana Botín, Banco Santander executive chair
Not in the filing
stated, not guessed- Prior-year absolute values for the underlying income-statement rows were not printed in the filing text.
- Prior-quarter absolute values for the underlying income-statement rows were not printed in the filing text.
- A numerical statutory EPS amount was not reported; only statutory EPS growth of 25% was reported.
- A numerical TNAV per share amount and cash dividend per share total were not reported; only TNAV plus cash dividend per share growth of 11% was reported.
- Gross margin is not applicable to the bank presentation and was not reported.
- Operating cash flow, free cash flow, cash balance and debt balance were not reported in the filing text.
- Revenue amounts by global business segment were not reported in the filing text; therefore no segment objects are presented.
- No previous-release outlook was provided, so no comparison with prior guidance is available.
- The filing text references key consolidated-data pages, but the underlying numerical tables are not present in the supplied text.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is a Form 6‑K earnings release for Banco Santander, a dual‑listed bank with ADR ticker SAN on NYSE.
Ticker impact
Banco Santander posted 9M 2026 underlying profit up 16% to €11.2 bn and EPS up 25%, beating prior period.
likely upward pressure as investors price in higher earnings and profit growth
The earnings beat and sizable profit increase are fresh primary disclosures for a large-cap bank, driving bullish sentiment.
Market effects
Banking sector may see broader uplift as a major European bank reports strong results.
European markets could rise on the positive earnings news from a leading Spanish bank.
Global investors may view the results as a sign of resilience in the financial sector.
Counterpoint
If the market has already priced in the earnings beat, the stock could face short-term profit taking.
Key entities
- companyBanco Santander
Spanish banking group with ADR ticker SAN.
