International Companies
Santander reports record Q1 profit, reaffirms targets
By Josh White
Date: Wednesday 29 Apr 2026
(Sharecast News) - Banco Santander reported a record first-quarter profit and reaffirmed its medium-term targets on Wednesday, as stronger lending revenue, higher fees and gains from disposals helped offset rising provisions in Argentina and the UK.
Spain's largest bank said net profit rose 60% in the quarter to €5.46bn, boosted by a €1.9bn capital gain from the sale of its Polish business. Underlying net profit increased 12.5% year on year to €3.56bn, in line with analysts' forecasts cited by Reuters, while Bloomberg said reported profit exceeded expectations of €4.97bn.
Net interest income, which measures earnings from loans minus deposit costs, rose 3.6% to €11.02bn on an underlying basis, above analyst expectations of €10.91bn cited by Reuters.
Fees increased 4.9%, while the bank's efficiency ratio improved by three percentage points from a year earlier to 42.8%, supported by its digital transformation.
Executive chair Ana Botín said the performance allowed the bank to "reiterate all our targets for 2026 and our three-year plan, based on our current updated macroeconomic outlook."
Santander's 2026 targets include mid-single-digit revenue growth, higher profits and a core tier-one capital ratio of 12.8% to 13%.
The bank ended March with a CET1 ratio of 14.4%.
The results were supported by growth in Spain and Mexico, which offset weaker performances in Portugal and Argentina.
Profit in Spain rose 12%, helped by lending growth and a resilient domestic economy, while UK profit also increased 12% on higher fee income.
Net profit rose 6.9% in Mexico and 6.4% in Brazil, while Portugal fell 10% against a prior-year period that benefited from provision releases.
Profit in Argentina dropped 60% after impairments rose more than fourfold amid a tougher economic backdrop.
Santander also booked a €207m provision at its digital consumer unit Openbank for UK motor finance compensation, adding to £461m already set aside.
Overall provisions rose 4.6%, with the bank also pointing to higher loan-loss provisions linked partly to specific names in Europe and Brazil.
The bank's retail division, its largest earnings contributor, increased profit by 9%, while corporate and investment banking profit rose 15%.
Santander has been expanding in investment banking, particularly in the US, where it has hired dealmakers and bought brokerage Amherst Pierpont Securities.
The update came as Santander pursued a broader expansion strategy, including the purchase of TSB in the UK and a planned $12bn acquisition of Webster Financial in the US.
The Webster deal, which would be the largest takeover of a US lender by a continental European bank, was due to be put to Webster shareholders on 26 May.
Santander said it aimed to lift net income to more than €20bn by 2028 while reducing costs and improving its efficiency ratio to about 36%.
At 1247 CEST (1147 BST), shares in Banco Santander were up 1.49% in Madrid at €10.52.
Reporting by Josh White for Sharecast.com.
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