Santander adds 12 million customers as underlying profit rises 15% to €7.3 billion in the first half
Revenue rose 6% to €30.8 billion, with strong net interest income (NII) and net fee income growth, driven by more customers and increased volumes across global businesses[2].
Loans and customer funds grew 9% and 11%, respectively, in constant euros, driven by higher customer activity and supported by the incorporation of TSB.
Total costs were down (-2% in constant euros excluding TSB), 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%, 2.9 percentage points better than a year ago
Underlying profit in Q2 reached €3.8 billion, up 17%.
Santander completed the acquisition of TSB on 30 April, strengthening its UK franchise with over four million customers, a high-quality deposit base, a low-risk mortgage portfolio and at least £400 million of expected cost synergies.
With the buybacks against 2025 results and c.50% of the capital generated from the Poland disposal, as well as the expected c.€1.8 billion buyback against H1’26 results, already approved by the ECB, the bank will have delivered c.€9 billion towards its commitment to distribute at least €10 billion through share buybacks for 2025 and 20263.
Santander is on track to meet its 2026 targets, which exclude the impact of M&A: mid-single-digit revenue growth, costs down, both in constant euros; higher profit (vs. €14.1 billion in 2025); and a CET1 ratio of 12.8-13%4.
Underlying business performance
All variations are year-on-year unless otherwise stated.
Banco Santander reported a record underlying profit of €7,328 million in the first half of 2026, up 15%, driven by strong customer activity and the continued execution of ONE Transformation, that is resulting in lower costs. Attributable profit reached €8,973 million, up 31%, including a €1.9 billion net capital gain following the completion of the disposal of Santander Bank Polska in January, partially offset by €250 million of restructuring costs related to the integration of TSB. Underlying results exclude these non-recurring items, providing a consistent view of operating performance.
Santander continued to expand its customer base, adding 12 million customers over the last twelve months to reach 182 million in total, driven by strong commercial momentum across all businesses, together with the addition of more than four million TSB customers following the acquisition, which was completed on 30 April.
We performed strongly in the first half, adding twelve million customers year-on-year. Revenue grew 6% and costs fell, with ONE Transformation driving further improvements in operating leverage and supporting record profits. The successful completion of the TSB acquisition in the UK marks another important milestone in the execution of our strategy. It strengthens our position in one of our core markets, adding scale, high-quality deposits and a low-risk mortgage portfolio, while creating significant opportunities to improve our customer offering and profitability once the integration is complete.
Ana Botín, Banco Santander executive chair
The bank continued to improve profitability and create value for shareholders, achieving an underlying return on tangible equity (RoTE) of 15.6% (+0.7 percentage points), with underlying earnings per share (EPS) up 20%. Tangible net asset value (TNAV) plus cash dividend per share increased 19%, reflecting sustained value creation driven by higher profitability and disciplined capital allocation.
Business volumes remained strong, with loans increasing 9% and customer funds (deposits + mutual funds) 11% in constant euros, supported by solid commercial momentum across global businesses and the incorporation of TSB. Excluding TSB, loans increased 5% and customer funds 7% (deposits +5%) in constant euros. Loan growth was driven by mortgages in Retail, auto lending in Openbank and double-digit loan growth in CIB.
Total revenue increased 6% to €30,847 million, supported by net interest income of €22,711 million (+7%) and net fee income of €6,851 million (+9%), reflecting higher customer activity, deeper customer relationships and business volume growth across all global businesses. More than 95% of group revenue continues to be linked to customer activity, providing resilience in the current interest rate environment.
Total costs were down (-2% in constant euros excluding TSB), reflecting continued efficiency gains from ONE Transformation, which more than offset inflationary pressures and investments to support business growth. As a result, net operating income increased 12% to €17,636 million, while the efficiency ratio improved by 2.9 percentage points to 42.8%, supported by structurally lower costs and higher revenue.
The group also continued to accelerate the deployment of AI across its businesses, generating €84 million of business value (higher revenue, lower costs and lower loan-loss provisions) in the first half through improved customer service, higher productivity and commercial growth.
Loan-loss provisions increased 9%, mainly reflecting broader market trends in Argentina; excluding this impact, provisions were broadly stable. Credit quality remained solid, with cost of risk at 1.15%, supported by prudent risk management, diversified exposure and historically low unemployment levels across most of the bank’s markets. The non-performing loan ratio improved to 2.93% versus the previous quarter (-7 basis points), remaining at historically low levels, with a coverage ratio of 64%.
The CET1 capital ratio reached 14.0%. Excluding the -55 basis point impact from the TSB acquisition completed on 30 April, the group generated 20 basis points of capital in the quarter through strong organic capital generation. Taking into account the expected impact of the Webster acquisition, Santander remains well positioned to meet its year-end CET1 target between 12.8% and 13%, at the high end of its 12-13% operating range.
Santander continued to deliver attractive shareholder returns, with TNAV plus cash dividend per share up 19%. During the first half, the bank completed the payment of the 2025 cash dividend of 24 euro cents per share, up 14% year-on-year, and continued executing the €5.0 billion share buyback programme announced in February, including the additional distribution linked to the Poland disposal.
Including the share buyback programme currently underway and the expected c.€1.8 billion share buyback programme against H1 2026 earnings, Santander will have delivered c.€9 billion towards its plan to distribute at least €10 billion through share buybacks for 2025 and 2026[3]. The implementation of the programme against H1 2026 results, which has already been approved by the ECB, is subject to the corresponding corporate approvals and its terms will be communicated in due course following approval.
Outlook
Santander reiterates all its 2026 targets, which exclude the impact of M&A in 2025 and 2026. These targets include mid-single-digit revenue growth and lower costs in constant euros, higher profit than the €14.1 billion reported in 2025, and a CET1 ratio between 12.8% and 13%. Revenue growth is expected to continue to be supported by customer activity, with net fee income growing faster than net interest income, while cost discipline and ONE Transformation will continue to drive positive operating leverage.
Santander also reiterates its three-year plan as outlined at its Investor Day last February: by 2028, the group targets a RoTE above 20%, profit above €20 billion and more than 210 million customers[4], supported by scale, network effects and continued improvements in productivity and capital allocation.
Global businesses (H1 2026 vs H1 2025)
To better reflect the performance of each business, the year-on-year changes provided below are presented in constant euros unless stated otherwise. Variations in current euros are available in the financial report.
Retail & Commercial Banking’s underlying profit grew 12% to €4,124 million (+10% excluding TSB), supported by strong commercial momentum, higher fee income, lower costs (-3% or -5% excluding TSB) and efficiency gains from the common operating model. Loans grew by 9% (+2% excluding TSB), with expansion across most segments, mainly driven by higher mortgage lending, while deposits rose by 13% (+6% excluding TSB), reflecting strong customer activity across its footprint. ONE Transformation continues to progress at pace, with product digitalization driving digital sales (+21%) and the customer interaction platform now ready for rollout in Spain. RoTE stood at 17.1%.
Openbank. Digital Consumer Bank was renamed Openbank in the first quarter of 2026, reflecting the integration of Santander’s global consumer finance businesses and its digital bank. Recurrent profit before tax reached €1,651 million, +15%, excluding the UK motor finance provisions, supported by strong growth in both net interest income and fee income. Underlying profit amounted to €827 million, affected by the UK motor finance provisions and the end of electric vehicle tax incentives in the US in 2025. The efficiency ratio and cost of risk stood at 41.6% and 2.09%, 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 €1,742 million (+17%), driven by strong revenue growth (+16%) across all business lines. Global Banking and Global Markets were the main contributors, reflecting the continued success of their growth initiatives. The disciplined execution of the strategy, focused on growing advisory and capital-light businesses, further improved profitability, with RoTE at 20.3%, while the efficiency ratio improved to 40.8%.
Wealth Management & Insurance, which includes the Private Banking and Insurance & Asset Management Solutions businesses, increased its underlying profit by 19% to €1,083 million, with fee income up 11% backed by strong client inflows and focus on value-added activities. Assets under management (AuMs) reached new record levels of €581 billion (+13%), driven by solid commercial activity and market performance. Private Banking customer assets and liabilities (CAL) increased 15%, while Insurance gross written premiums rose 11%.
Payments, which brings together the group’s digital payment capabilities and provides global technology solutions to Santander businesses and third-party clients, generated an underlying profit of €78 million, driven by strong revenue growth as it continued to scale its global platforms and expand its integrated payments ecosystem. Getnet’s total payments volume increased 10%; Getnet Platforms processed 9 billion account-to-account and card transactions in the year, five times more than a year earlier, and Ebury increased its active customers by 28% to over 28,000. The EBITDA margin improved by 3.8 percentage points to 32.6%, reflecting the benefits of greater scale and operating leverage.
Banco Santander is one of the world’s largest banks, with 185,000 employees, serving 182 million customers, 3.5 million shareholders and a market capitalization of €178 billion at the end of June 2026.
[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. Group underlying profit excludes: i) restructuring costs related to TSB in Q2’26 (-€250mn); ii) the capital gain resulting from the disposal of the Poland business in Q1’26 (€1,895mn); and iii) results related to the business subject to the Poland disposal in H1’25 (€456mn). In the Group’s consolidated balance sheet, balances as at 30 June 2026 include TSB, affecting comparisons with prior periods.
[2] All figures are year-on-year unless otherwise stated. Volumes (lending, deposits, etcetera) 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] Total share buybacks as of H1’26 including: i) €1.7bn share buyback against H1’25 results (completed); ii) €1.8bn share buyback against H2’25 results (underway); and iii) €3.2bn additional share buyback to distribute approx. 50% of the CET1 capital generated following the completion of the sale of 49% of Santander Bank Polska to Erste Group on 9 January 2026 (underway). In addition, the ECB has approved a €1.8bn share buyback against H1’26 results. The implementation of the programme against H1’26 results is subject to the corresponding corporate approvals and its terms will be communicated in due course following approval.
[4] 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. CET1 ratio targets including all the impacts from inorganic transactions.
Banco Sabadell: Πούλησε την TSB στην Santander για 3,3 δισ. ευρώ
Ολοκληρώθηκε η πώληση της βρετανικής θυγατρικής της Banco Sabadell, TSB, στην Banco Santander έναντι 3,3 δισ. ευρώ, γεγονός που θα επιτρέψει στην πρώτη να καταγράψει κεφαλαιακό κέρδος περίπου 300 εκατ. ευρώ και να διανείμει στους μετόχους της έκτακτο μέρισμα 50 λεπτών στις 29 Μαΐου.
Όπως εξήγησαν τα δύο μέρη στην Εθνική Επιτροπή Αγοράς Κινητών Αξιών (CNMV) νωρίς το πρωί της Παρασκευής, η συναλλαγή που ανακοινώθηκε στις αρχές Ιουλίου 2025 ολοκληρώνεται τώρα, αφού έλαβε όλες τις απαραίτητες εγκρίσεις από τους εποπτικούς και ρυθμιστικούς φορείς. Τι θα αποφέρει η πράξη στη Sabadell
Η πράξη θα αποφέρει στη Sabadell ποσό σε μετρητά ύψους 2,863 δισ. λιρών (περίπου 3,3 δισ. ευρώ), αν και η Santander θα χρειαστεί να καταβάλει μόνο τα 2,65 δισ. λίρες, περίπου 3,05 δισ. ευρώ, που συμφωνήθηκαν ως τίμημα αγοράς, γεγονός που αντιστοιχεί σε 1,5 φορές τη λογιστική αξία της TSB.
Σε αυτό το ποσό, σύμφωνα με τα συμφωνηθέντα, προστίθεται η καθαρή αξία που δημιούργησε η TSB έως την ολοκλήρωση της συναλλαγής, η οποία ανήλθε σε 213 εκατ. λίρες, περίπου 242 εκατ. ευρώ. Με αυτόν τον τρόπο, η πράξη δημιουργεί για την Banco Sabadell περισσότερες από 400 μονάδες βάσης κεφαλαίου και κεφαλαιακό κέρδος «ελαφρώς υψηλότερο» των 300 εκατ. ευρώ, γεγονός που θα επιτρέψει τη διανομή στους μετόχους της, στις 29 Μαΐου, έκτακτου μερίσματος σε μετρητά ύψους 50 λεπτών του ευρώ.
Ο διευθύνων σύμβουλος της Banco Sabadell, César González-Bueno, τόνισε σε ανακοίνωση ότι πρόκειται για «μια μεγάλη συναλλαγή, ελκυστική για όλα τα μέρη» και υπογράμμισε ότι πραγματοποιήθηκε «σε κατάλληλη στιγμή, επιτρέποντας την καταβολή έκτακτου μερίσματος 50 λεπτών ανά μετοχή και την εστίαση της στρατηγικής της τράπεζας στην Ισπανία».
Από την πλευρά του, ο μέχρι τώρα διευθύνων σύμβουλος της TSB και μελλοντικός διάδοχος του González-Bueno στην ηγεσία της Sabadell, Marc Armengol, εκτίμησε ότι η TSB αποτελεί σήμερα μια ιστορία επιτυχίας στο Ηνωμένο Βασίλειο χάρη στην εξαιρετική δουλειά που επιτέλεσε όλη η ομάδα τα τελευταία χρόνια.
Στο παρελθόν, η πρόεδρος της Santander, Ana Botín, είχε δηλώσει ότι η εξαγορά αποτελούσε ένα ακόμη βήμα στη στρατηγική του ομίλου στο Ηνωμένο Βασίλειο και «μια ελκυστική ευκαιρία» από χρηματοοικονομική άποψη. Η Santander ενισχύει τη θέση της στο Ηνωμένο Βασίλειο
Η εξαγορά ενισχύει τη θέση της Santander στο Ηνωμένο Βασίλειο, καθώς ενσωματώνει την TSB στη Santander UK, γεγονός που την καθιστά την τρίτη μεγαλύτερη τράπεζα της χώρας ως προς τα υπόλοιπα λογαριασμών όψεως ιδιωτών και την τέταρτη ως προς τα στεγαστικά δάνεια.
Συνολικά, οι δύο τράπεζες θα εξυπηρετούν σχεδόν 28 εκατομμύρια ιδιώτες και επιχειρήσεις σε όλη τη χώρα.
Η Santander αναμένει ότι η συναλλαγή θα αποφέρει απόδοση επί του επενδεδυμένου κεφαλαίου άνω του 20%, εν μέρει επειδή εκτιμά ότι οι συνέργειες κόστους θα φτάσουν τουλάχιστον τα 400 εκατ. λίρες ή το 13% της βάσης κόστους της νέας οντότητας.
Για τον σκοπό αυτό, η Santander προβλέπει ότι τα κόστη αναδιάρθρωσης προ φόρων το 2026 και 2027 θα ανέλθουν σε 520 εκατ. λίρες.
Το διοικητικό συμβούλιο της Sabadell ενέκρινε την προσφορά της Santander, η οποία επικράτησε έναντι εκείνης της Barclays, ενός ακόμη ενδιαφερόμενου για την TSB, εν μέσω της δημόσιας πρότασης εξαγοράς (OPA) της BBVA, γεγονός που την υποχρέωσε να συγκαλέσει τον Αύγουστο τη γενική συνέλευση των μετόχων της για την έγκριση της συναλλαγής.
Στην ίδια αυτή συνάντηση και χάρη στη δημιουργία αξίας που προέκυπτε από την πώληση της TSB στη Santander, η Sabadell πρότεινε την καταβολή έκτακτου μερίσματος σε μετρητά ύψους 50 λεπτών του ευρώ ανά μετοχή, που αντιστοιχεί περίπου σε 2,5 δισ. ευρώ.
Santander, World’s Best Private Bank for HNW Clients
Santander Private Banking has been awarded 15 prizes by Euromoney. The bank has been named the World’s Best Private Bank for High Net Worth (HNW) clients, one of the most prestigious awards in the industry, recognizing its value proposition for this segment.
In addition to the global award, Santander has received a wide range of recognitions across multiple categories and regions, including Best International Private Bank in Latin America, Best for Structured Products in the region, and Best Private Bank for HNW clients and for Alternative Investments in Europe.
The publication also recognizes Santander as the Best International Private Bank in key markets such as Argentina, Brazil, Chile, Mexico, Uruguay and Poland. In Spain, Santander has been recognized as Best Private Bank for Ultra High Net Worth (UHNW) clients, Best for Alternative Investments and Best for Family Office Services; and in Brazil, as Best Private Bank for Sustainability.
These industry awards highlight the strength of our private banking model, which combines an innovative, modern vision with a solid and consistent long-term strategy. They also recognize the commitment and talent of our teams around the world, who work every day to deliver the best service and create long-term value for our clients, to whom we are grateful for their trust.
Alfonso Castillo, global head of Santander Private Banking
For more than 20 years, Euromoney has identified best practices in private banking and wealth management globally. The breadth of the recognitions received this year by Santander reflects the strength of its service offering, the innovation of its solutions and the client-focused approach that defines its private banking business.
Santander Private Banking offers clients a personalized service with private bankers specialized in key markets across Europe and the Americas, combining deep local expertise with a global platform that provides access to diversified investment opportunities.
Santander sets a new standard for profitable growth, targeting more than 210 million customers, over €20 billion profit and more than double cash dividend per share by 2028
Banco Santander has presented its strategic plan for 2026–2028 at its Investor Day in London, marking the next phase of value creation for the bank.
The plan builds on the successful delivery of the 2023–2025 strategic cycle and sets a roadmap for structurally higher returns over the coming years. Ana Botín (executive chair), Héctor Grisi (CEO) and Jose García Cantera (CFO) will outline the group’s strategy and key financial and operational targets, which include the following[2]:
By 2028, the bank aims to reach more than 210 million customers, up from 180 million at the end of 2025, further strengthening its position as the leading bank by customers across Europe and the Americas.
By growing revenue mid-single digit and reducing total costs[3] every year (resulting in an efficiency ratio of c.36% by 2028), the bank expects to achieve a profit of more than €20 billion by 2028.
This would result in a return on tangible equity (RoTE) above 20% in 2028, supported by double-digit earnings per share growth every year in 2026-2028.
The bank will increase cash dividend payout to c.35% of group profit from 2027 results onwards, with c.15% allocated to share buybacks1, and more than double the cash dividend per share versus 2025.
Accelerating to high teens annual growth in tangible net asset value plus dividend per share (TNAVps+DPS) by 2028.
Highlights from the Investor Day
Capital strength will remain a cornerstone of the strategy. Santander expects to operate in 2028 with a CET1 ratio of approximately 13%, within the 12-13% operating target range.
The board intends to maintain its shareholder remuneration policy of distributing around 50% of profit through a combination of cash dividends and share buybacks, subject to corporate and regulatory approvals. The bank has already committed to distributing at least €10 billion in share buybacks from 2025–2026 earnings, with €5 billion launched earlier this month and €1.7 billion already executed in 2025. The board also intends to return to shareholders any excess capital above 13% at the end of the plan.
In 2025, Santander delivered a record attributable profit of €14.1 billion in 2025, marking the successful completion of its three-year strategic cycle. Over the 2023-2025 period, earnings per share increased 68%, while tangible net asset value per share plus dividend per share increased by 14% per year on average. Since 2021, including the newly announced €5 billion buyback, Santander will have returned €16.2 billion to shareholders through share buybacks, representing approximately 18% of its outstanding shares. Over the 2023-2025 period, Santander’s share price increased by over 250%.
These results reflect the strength of Santander’s diversified model, the impact of ONE Transformation and the growing contribution of its global businesses, demonstrating the group’s ability to translate scale and simplification into higher returns. This performance provides a strong starting point for the next phase of value creation.
ONE Transformation
A central pillar of the plan is the continued execution of ONE Transformation, which is delivering efficiency gains and operational leverage across the group through the scaling of common technology platforms across the bank’s global businesses. Santander expects to improve its efficiency ratio through further simplification of products and processes, increased collaboration across its global businesses and the scaling of common technology platforms.
Investments in data & AI are a key lever of ONE Transformation, fully embedded in the businesses and focused on hyper-personalized customer journeys, AI-powered frontline productivity and end-to-end process automation. By 2028, the bank expects to generate more than €1 billion of business value annually (cost savings plus revenues) from data and AI initiatives, contributing around 1 percentage point of the group’s cost-to-income improvement.
Santander will continue to leverage its five global businesses (Retail, Openbank, CIB, Wealth and Payments) to optimize returns and enhance customer value.
In Retail, the focus is on becoming a global digital bank with branches, increasing digital sales and reducing cost-to-serve.
In Openbank, the global consumer business, is scaling as a connected and efficient digital platform across markets.
In CIB, capital-light, fee-based activities will continue to grow, while enhancing operational leverage.
In Wealth, assets under management and insurance penetration will expand, improving profitability.
In Payments, revenue will continue to grow at a double-digit pace, supported by scale and interconnected platforms, with improving margins.
Capital allocation
Disciplined capital allocation remains central to the strategy, focusing on businesses and markets capable of generating returns above the cost of equity. The bank’s successful M&A strategy in the past 12 months is simplifying the group’s footprint while strengthening the bank’s presence in two critical markets in the UK with TSB and in the US with Webster.
The bank’s businesses in the UK and US are expected to reach RoTE of c.16% and c.18% respectively by 2028, in line with the most profitable banks in their peer groups, while around 80% of the group’s overall loan book and c.65% of operating profit before tax will be generated in hard currency markets, enhancing earnings resilience and reducing volatility.
“Our strategic plan for 2026-28 sets a new standard for profitable growth, with the aim to serve more than 210 million customers across Europe and the Americas. Customer growth, together with disciplined execution of ONE Transformation, will drive higher revenues and structurally lower costs, resulting in an efficiency ratio of c.36% and a RoTE above 20% by 2028.” Ana Botín, Banco Santander executive chair
Final dividend
The board of directors of Banco Santander announced its decision to submit a final cash dividend against 2025 profit of 12.5 euro cents per share for approval at the forthcoming annual general meeting (AGM), expected to be held on 27 March 2026. As a result, the total cash dividend per share charged to 2025 results will be 24 euro cents, an increase of over 14% compared to the cash dividend against 2024 results (21 euro cents). The final cash dividend for 2025 will be paid on 5 May 2026.
The total shareholder remuneration against 2025 results will be approximately €7.05 billion (around 50% of the group’s attributable profit for 2025), divided approximately equally between cash dividends and share buyback programmes. It represents an equivalent yield of approximately 4.5%[4]. The Santander share price has increased over 75% in the last 12 months. Earlier this month, the bank started a c.€5 billion share buyback, comprising c.€1.8 billion against the second-half of 2025 results, as well as c.€3.2 billion linked to excess capital from the sale of 49% of Santander Poland.
From 2027 results onwards, the group intends to increase the cash dividend component of shareholder remuneration to around c.35% of group profits (versus 25% today), with c.15% allocated to share buybacks, and aims to more than double the cash dividend per share by 20281 versus 2025.
New board member
The board is also submitting to the shareholders’ meeting the appointment of Deborah Vieitas as a new independent director, subject to regulatory approval. Vieitas will fill the vacancy left by Homaira Akbari, who has informed that she will not stand for re-election and will therefore step down following this year’s shareholders’ meeting.
Deborah Vieitas currently serves as non-executive chair of Banco Santander Brasil and brings extensive executive experience in international banking and financial markets, having held senior leadership positions at international and Brazilian financial institutions. She previously served as CEO of the Brazilian subsidiary of Caixa Geral de Depósitos and held senior roles at global financial institutions including BNP Paribas and Crédit Commercial de France. Her appointment further strengthens the board’s international expertise, financial services experience and geographic diversity.
[1] The board of directors intends (1) to 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 (2) to distribute to shareholders any excess capital at the end of the 2026-2028 period. From 2027 results, 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 any excess capital at the end of the 2026-2028 period remains subject to future corporate and regulatory decisions and approvals.
[2] Projections and targets for Santander Group and its UK and US businesses in this announcement assume completion of the announced TSB and Webster acquisitions, which are pending completion and subject to customary conditions including regulatory and, for Webster, shareholder approvals.
[3] In constant euros and under a constant perimeter.
[4] Per Banco Santander’s market capitalization on 24 February 2026.
Santander completes the sale of 49% of Santander Bank Polska to Erste Group
Banco Santander and Erste Group Bank AG announced the completion, as planned, of the sale of Santander Bank Polska, which had been disclosed in May 2025, following the receipt of all required regulatory approvals.
Erste has acquired 49% of the share capital of Santander Bank Polska and a 50% stake in the Polish asset management business (TFI) that Santander Bank Polska did not own, for a total cash consideration of approximately €7 billion. The all-cash transaction at 584 zlotys per share values the bank at 2.2 times first-quarter 2025 tangible book value per share and represents a premium of 7.5% versus Santander Polska’s closing price on 2 May 2025, excluding the dividend paid in May 2025.
The transaction results in a net capital gain of approximately €1.9 billion for Santander, increasing its CET1 ratio by c.95 basis points, equivalent to around €6 billion. The financial impacts on both results and capital from this transaction will be recorded in the first quarter of 2026. Santander aims to maintain a target CET1 ratio of 12-13% by deploying capital in line with its stated hierarchy, prioritizing profitable organic growth and investments across its businesses that create a compounding effect on earnings, returns, book value and distributions.
As already announced, the bank plans to devote around 50% of proceeds to accelerate the delivery of its extraordinary shareholder buybacks, subject to regulatory approvals.
The transaction in Poland is expected to be earnings per share accretive in 2027–2028, driven by the redeployment of capital, and strengthens Santander’s strategic and financial flexibility. This supports disciplined capital allocation across the group and long-term value creation for customers and shareholders. The increased flexibility also supports the announced acquisition of TSB in the UK, subject to the relevant regulatory approvals.
With the completion of the transaction, Erste becomes the main shareholder of Santander Bank Polska, marking a new phase for the bank. Erste plans to change Santander Bank Polska’s name and brand to Erste Bank Polska within the second quarter of 2026.
Following the transaction, and after the accelerated placement of approximately 3.5% of Santander Bank Polska’s share capital completed in December, Santander now holds a 9.7% stake in the bank.
As already announced, Santander has become the sole owner of Santander Consumer Bank in Poland, following the acquisition of the remaining 60% stake it did not own. Santander will maintain a long-term presence in Poland through its consumer finance business.
I would like to thank Michał and all our teams in Poland for their dedication and outstanding contribution to the group over the years. It has been a privilege to work with such a strong team. Santander and Erste will continue to work closely together through a strategic partnership, leveraging our complementary strengths to better serve clients across our respective markets. While we will miss our colleagues in Poland, we are confident that Erste is the right owner for the business as we reallocate capital towards markets with the greatest connectivity to leverage the strength of the group and support sustainable growth and increased returns.
Ana Botín, Banco Santander executive chair
In parallel, Santander and Erste are entering into a new strategic alliance in Corporate & Investment Banking (CIB), designed to leverage the complementary strengths, geographic footprints and capabilities of both groups.
The cooperation, which has taken effect, is based on a client referral and product specific joint approach model through which both banks will work together to better serve corporate and institutional clients operating across their respective markets. Santander will provide Erste’s clients with access to its global product platforms and international network across the UK, Europe and the Americas, while Erste contributes its deep market expertise and coverage in Central and Eastern Europe. This collaboration is intended to facilitate seamless client interactions, broaden product offerings and support clients’ cross-border growth strategies.
In the area of payments, the cooperation encompasses a potential collaboration with PagoNxt, Santander’s global payments platform business, with the initial focus on cloud-native payments infrastructure in Poland.
Santander simplifies its offering by removing the fee for international transfers between individuals via its app and website
Banco Santander is taking another step forward in its commitment to offering simpler, more global, and barrier-free banking. Starting already, the bank’s retail customers will be able to make international transfers through the app and website without paying any transfer issuance or SWIFT fees, regardless of the destination country or amount. No other bank or money transfer company in Spain currently offers this service without fees.
Under this initiative, Santander aims to make life easier for a growing number of customers who send money abroad, whether within Europe or to other countries outside the SEPA zone. Until now, international transfers outside SEPA — to countries such as Mexico, Colombia, China, or the United States — were subject to commission and SWIFT fees that in many cases amounted to around 50 euros, even for transactions carried out through digital channels.
Santander thus reinforces its leadership in digital payment services and moves forward with its strategy to offer customers a borderless banking experience, with a simple process that helps bring customers closer to their family and friends anywhere in the world.
In addition, starting next week, the bank will simplify and reduce fees for international transfers made from branches to outside SEPA, setting them at 20 euros for transfers up to 10,000 euros and 50 euros for higher amounts.
Banco Santander customers were also the first in Spain to enjoy instant cross-border payments between individuals made account-to-account using just a mobile phone number — without the need for bank cards or conventional transfers. Thanks to the interconnection of payment solutions in Spain (Bizum), Italy (Bancomat), and Portugal (MBWay), Santander customers who use Bizum can send and receive money instantly simply by selecting a contact from their phonebook, with the same level of security and trust as Bizum transactions between Spanish bank accounts. Furthermore, technical tests are already underway to add two new partners to the alliance: Blik (Poland and Slovakia) and Vipps MobilePay (Norway, Finland, Sweden, and Denmark), thereby expanding the peer-to-peer payment service to nine European countries and reaching more than 80 million users.
Santander named ‘Best Private Bank’ in Spain and Poland by The Banker
Santander Private Banking has been recognized by The Banker magazine with three awards in its Global Private Banking Awards 2025: Best Private Bank in Spain for the sixth year, Best Private Bank in Poland for the first time, and Highly Commended for Best Private Bank in Mexico. These recognitions reaffirm the strength of Santander’s global private banking model, which combines an international offering with deep local expertise and a client-centered value proposition.
The prestigious magazine, part of the Financial Times Group, recognizes each year the excellence and leadership of the world’s most outstanding institutions in the sector, assessing service quality, strategy, innovation, and financial performance. This year’s awards highlight, among other aspects, Santander’s ability to provide tailored solutions, its innovation and digitalization efforts, and ultimately, the unique value proposition the bank offers its clients.
With a presence in more than twelve markets and a global model that combines specialized advisory, advanced investment solutions, and a robust digital platform, Santander Private Banking continues to strengthen its leadership as one of the global leading private banks.
Founded in 1926, The Banker magazine’s annual Global Private Banking Awards, organized in collaboration with Professional Wealth Management (PWM), are considered among the most prestigious in the industry. Candidates are evaluated by an independent panel of experts who assess their growth, progress in strategic plans, profitability, and the quality of their client relationships and asset management. The 2025 edition marks the 18th anniversary of the Global Private Banking Awards.
Photo 1: Spain: Javier García Gómez, Sol Moreno de los Rios and Juan Ignacio Prat
Photo 2: Poland: Antonio Costa, Piotr Furman and Alejandra Entrecanales
Santander announces the sale of 49% of Santander Polska to Erste Group Bank, and agrees strategic cooperation across CIB and payments
Banco Santander has agreed to sell to Erste approximately 49% of Santander Polska’s share capital for €6.8 billion and 50% of the Polish asset management business (TFI) that Santander Polska does not own for €0.2 billion, for a total consideration of €7 billion, subject to customary conditions including regulatory approvals[1].
The all-cash transaction at 584 zlotys per share values the bank at 2.2 times first quarter 2025 tangible book value per share, excluding the declared dividend of 46.37 zlotys per share, and 11 times its 2024 earnings. It also represents a premium of 7.5% versus Santander Polska’s closing price on 2 May 2025, excluding the dividend, and 14% versus the six-month volume-weighted average price. Santander Polska’s shares will trade ex-dividend on 12 May 2025.
Following the transaction, Santander will own c.13% of Santander Polska and plans to take full ownership of Santander Consumer Bank Polska before closing by acquiring the 60% stake owned by Santander Polska.
Upon completion, which is expected around the end of 2025, the transactions are expected to result in a net capital gain of approximately €2 billion for Santander, increasing CET1 ratio by c.100 basis points, equivalent to around €6.4 billion, and result in a pro forma CET1 ratio of around 14%.
Strategic cooperation
In addition to the acquisition, Santander and Erste are also announcing a strategic cooperation to leverage each firm’s strengths and footprint in Corporate & Investment Banking (CIB) and to allow Erste to gain access to Santander’s payments platforms, aligning with Santander’s strategy to be the best open financial services platform globally.
In CIB, both Santander and Erste will leverage each other’s regional strengths to offer local solutions and market insights for their respective corporate and institutional clients via a referral model that will facilitate seamless client interactions and service offerings. Santander will also connect Erste’s clients with its global product platforms in the UK, Europe and the Americas and the banks will work together as preferred partners with the aim of building strong, mutually beneficial relationships to maximize joint business opportunities.
With Payments, the banks will explore opportunities for Erste, including with Santander Polska post-completion, to leverage Santander’s payments capabilities and infrastructure, including Santander’s PagoNxt business.
Santander’s strategy is focused on generating sustainable value creation for its customers and shareholders, deploying shared platforms across each of its five global businesses that offer the best customer experience at the lowest cost-to-serve, leveraging the group’s network and economies of scale.
Since it announced a new phase in value creation at its investor day in 2023, Santander has added 15 million customers, improved efficiency from 46.6% to 41.8% and generated a 62% increase in earnings per share.
Ana Botín, executive chair of Banco Santander, said,
“This transaction is another key step in our strategic focus on shareholder value creation which is based on both accelerating our platform strategy through ONE Transformation and growing the group’s scale in geographies with highly connected markets.
For Santander, we crystallise value at highly attractive multiples. For Erste, they are acquiring an outstanding business with above all, a world class team, which I am confident will continue generating value for Santander Polska’s customers, employees and stakeholders.
We will deploy the capital generated from the transaction in line with our capital hierarchy, prioritizing profitable organic growth.
We plan to devote 50% of proceeds (c.€3.2 billion) to accelerate the delivery of our planned extraordinary shareholder buybacks to early 2026, as well as to potentially exceeding the previously announced total share buyback target of up to €10 billion given the attractiveness of buybacks at current valuations, subject to regulatory approvals2.
Most of all, a huge thanks to Michał and to each one of our team in Poland for their outstanding contribution to the group over all these years. It has been an honour and a pleasure to work alongside you.”
Financial impact
Upon completion of the transaction, the group will run temporarily with a CET1 ratio above its target operating range of 12-13%, with the aim of returning to the target range over time by deploying capital in line with its capital hierarchy, prioritizing profitable organic growth and investments across its businesses that create a compounding effect on earnings, returns, book value and distributions.
Santander intends to distribute 50% of the capital released from this disposal upon completion, equivalent to approximately €3.2 billion of share buybacks. This will accelerate the delivery of its up to €10 billion share buyback target from 2025 and 2026 earnings and anticipated excess capital. As a result, there is potential to exceed the previously announced share buyback target given the attractiveness of buybacks at current valuations, subject to regulatory approvals[2].
The transaction is expected to be earnings per share accretive by 2027/2028 from the redeployment of capital through a combination of organic growth, share buybacks and any bolt-on transactions that meet the group’s strict strategic and return objectives. The capital released will give Santander more strategic flexibility to invest in other markets where the bank already operates in Europe and the Americas to accelerate growth, increase network revenues and maximise customer and shareholder benefits.
[1] Including the Polish Financial Supervision Authority (KNF).
[2] As announced on 5 February 2025, the board intends to allocate up to €10bn to shareholder remuneration in the form of share buybacks, corresponding to the 2025 and 2026 results, as well as to the expected excess capital. This share buyback target includes: (i) buybacks that are part of the existing shareholder remuneration policy outlined below, and (ii) additional buybacks following the publication of annual results to distribute year-end excesses of CET1 capital. The ordinary remuneration policy for the 2025 results, which the board intends to apply, will remain the same as for the 2024 results, consisting of a total shareholder remuneration of approximately 50% of the Group’s reported profit (excluding noncash and non-capital ratios impact items), distributed in approximately equal parts between cash dividends and share buybacks. The execution of the shareholder remuneration policy and share buybacks to distribute the excess CET1 capital is subject to corporate and regulatory approvals.
Santander acquires Tresmares Capital to boost growth in alternative asset management
Santander has obtained regulatory authorization to acquire 89.9% of Tresmares Capital, an alternative financing and private equity platform founded in 2020 that offers financial solutions to high-growth SMEs and private equity managers throughout Europe.
The acquisition of this platform is one of the pillars of the bank’s growth strategy in alternative asset management, promoting private debt and funds of funds verticals.
Tresmares, which leads Spain’s private debt market, has offices in Madrid and London and has an ambitious international expansion plan. Over the next five years, it aims to reach more than €8 billion in investment commitments, with a focus on the growth of institutional funds. As part of this plan, Tresmares will open a new office in Germany in 2025 and another in Poland in 2026. In addition, it will launch new divisions of funds of funds and fund financing this year.
Tresmares Capital will remain independently managed and its current CEO, Borja Oyarzábal, will continue to lead the project, ensuring the continuity of the platform’s approach and strategy. Tresmares already has a team of over 50 investment professionals and 20 tech-based employees, which backs its ability to offer quality products and manage expected growth. “Santander’s confidence in the project is proof of the success of Tresmares’ culture, which lies in both human capital and in management tools and technology, which are the foundations of our business,” says Borja Oyarzábal.
With this acquisition, Santander reinforces its commitment to growth in the alternative asset sector, leveraging Santander Asset Management’s global capabilities to build a solid and scalable franchise.
Openbank by Santander hits $2 billion in deposits in the United States
Santander Bank, N.A. (“Santander Bank” or “the Bank”) announced that the Openbank digital bank platform topped $2 billion in total deposits* since going to market in the United States in the fourth quarter of 2024. This achievement represents a significant milestone in the Santander US business strategy to efficiently boost national deposit acquisition that will fuel its leading Auto lending franchise and transform its Retail Bank. The business also launched a 2025 branding campaign, You’re Smart Like That, across out-of-home, digital and social channels.
The Retail Bank remains a priority for Santander US, with the goal of becoming a national, digital bank with branches. In 2025, the Bank will continue executing against the below strategic priorities to achieve its ambition.
Expand the Openbank digital platform: Building from the successful launch of the Openbank High Yield Savings account, the Openbank digital platform will begin offering additional digital capabilities and products, such as Certificates of Deposit (CDs), Payments and Checking Accounts, in 2025 and beyond. Enhance bank branches: The Bank’s 2024 transformation efforts were well received, with increasing Net Promoter Scores, industry rankings and retail deposit growth.
“Our aim is to become a national, digital bank with branches and reaching this deposit milestone at record pace is a testament to our customer-obsessed mindset, commitment to innovation, and global connectivity. We are uniquely positioned to provide U.S. consumers with the digital banking experience of a FinTech and the strength and stability of a leading global bank.”
Swati Bhatia, Head of Retail Banking & Transformation for Santander Bank
Globally, Openbank is Santander’s digital-first banking platform. It is currently Europe’s largest 100% digital bank by deposits, with operations in four European countries (Spain, Germany, Portugal, and the Netherlands) and Mexico.
In the United States, Openbank is a division of Santander Bank, N.A., which is a Member of the FDIC.