Banco Santander (BSD2) Q3 2026 Earnings Report
DE:BSD2 Q3 2026 EPS Results
- Actual EPS
- EUR 0.25
- Consensus EPS
- EUR 0.23
- Beat/Miss
- Beat by +EUR 0.02
- One Year Ago EPS
- EUR 0.22
DE:BSD2 Q3 2026 Revenue Results
- Actual Revenue
- EUR 33.90B
- Expected Revenue
- EUR 16.18B
- Beat/Miss
- Beat by +EUR 17.72B
- YoY Revenue Growth
- +13.22%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/28/2026
- Time
- Before Open
- Conference Call
- Wednesday, October 28, 2026
DE:BSD2 Upcoming Earnings
Banco Santander's next earnings date is estimated for February 3, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, with record profit, broad revenue growth, improving efficiency, robust capital generation, resilient credit quality excluding Argentina, and reaffirmed medium-term targets. Management also highlighted strong performance in the U.K., U.S., CIB, Wealth, Payments, and insurance. The main challenges were Argentina-related provisions, Brazil's de-risking and profitability outlook, competitive deposit markets, Mexico's sequential NII decline, and pending integration and regulatory charges, but these issues were presented as contained or actively managed.
Company Guidance
Management expects to exceed “more than EUR 14.1 billion profit in 2026, excluding M&A,” and is “on track to be above EUR 15 billion of underlying net profit, including M&A for the whole year”; revenue remains on track to deliver the “mid single-digit growth target,” year-end CET1 is expected to be “at or above our 12.8% target at the upper end of our 12%-13% CET1 operating range,” and the financial North Star is “to deliver an RoTE above 20% by 2028.” Brazil’s cost of risk is expected at “around 1.15% for 2026,” improving “towards 1.1% in 2027 and 2028”; Spain NII is expected to be “up mid-single digits or maybe a bit better than that” in 2027, with “Low to mid-single-digit growth in deposits in Spain”; Santander expects “400 million cost synergy targets” in the U.K., Part VII to finish “over the first quarter of next year,” Santander products to be offered to TSB customers “towards the third quarter of 2027,” U.S. RoTE to reach “around 18% by 2028,” and Danish Compromise approval “within the next two or three quarters.”
- Record Underlying Profit and Strong GrowthUnderlying profit for the first nine months of 2026 reached a record EUR 11.2 billion. Underlying profit grew 14% year-on-year in constant euros, and management said the group is comfortably on track to exceed its guidance of more than EUR 14.1 billion of 2026 profit excluding M&A and to deliver above EUR 15 billion of underlying net profit including M&A for the full year.
- Revenue Growth Across Global BusinessesRevenue increased 7% year-on-year, supported by net interest income up 8% and net fee income up 7%. Excluding M&A, revenue grew 5%, keeping Santander on track to deliver its mid-single-digit growth target. All five global businesses contributed to revenue growth.
- ONE Transformation Improving EfficiencyONE Transformation and simplification and automation initiatives delivered almost 2 percentage points of efficiency improvement. The group efficiency ratio improved to 42.6%, its best level in 17 years, while net operating income increased 12%. Costs declined 2% in Retail and Openbank even after incorporating TSB and Webster, while revenues grew 6%.
- Customer Growth and Deeper RelationshipsSantander added 17 million customers over the last 12 months, bringing the franchise to 189 million customers including TSB and Webster. Fees per active customer increased 2%, retail fees grew 8%, and cost per active customer declined 5%. In Spain, Santander added 445,000 customers over the past 12 months.
- Retail and Openbank Operational LeverageRetail profit grew 12% year-on-year, supported by strong operational leverage and solid asset quality with cost of risk relatively stable excluding Argentina. Openbank delivered 13% growth in profit before tax excluding motor finance, driven by positive operational leverage. Openbank Digital Bank in the U.S. has raised around EUR 11 billion of deposits since launch.
- Strong U.S. Performance and Webster ContributionSantander U.S. profit increased 24% year-on-year excluding Webster, supported by strong operating leverage and lower provisions, while Santander U.S. RoTE improved by around two percentage points in nine months. Webster contributed around EUR 89 million of underlying profit during its 40-day contribution to the quarter, and its integration is expected to support a path toward around 18% RoTE by 2028.
- CIB Growth and High ReturnsCIB profit rose 15% year-on-year while maintaining one of the best efficiency ratios in the sector and originating new business at an RoTE of around 22%. CIB revenue increased 14%, supported by strong client activity, particularly in global markets and the U.S., where fees grew more than 30%.
- Wealth and Insurance MomentumWealth profit rose almost 20%, driven by strong client inflows, fee growth, and continued efficiency gains. Cross-border private banking referrals increased more than 40% year-on-year, life savings sales in Spain increased 43%, and core insurance premiums grew 20%.
- Payments and Ebury ExpansionGetnet platforms are processing around 2 billion transactions per month, helping reduce cost per payment transaction by 39%. Ebury revenue increased 15%, EBITDA margin improved to 34%, and profit more than doubled year-on-year.
- Capital Generation and Shareholder ReturnsSantander generated close to 90 basis points of capital during the year, including almost 1 percentage point organically, and maintained a CET1 ratio of 12.7%. Underlying RoTE increased to 16%, or close to 17% at a normalized average CET1 ratio of 13%. Underlying earnings per share grew 21%, TNAV plus cash dividend per share increased 11%, and total share buybacks including the current program will reach around EUR 9 billion.
- Capital Target Remains on TrackSantander generated 59 basis points of capital from profit in the third quarter and expects to end the year at or above its 12.8% CET1 target, at the upper end of its 12%-13% operating range, after absorbing remaining regulatory charges and integration impacts from TSB and Webster.
- Resilient Credit Quality Excluding ArgentinaExcluding Argentina, provisions grew broadly in line with organic loan growth and cost of risk was broadly stable at 109%. The group NPL ratio improved to 2.9%, while coverage remained around 64%. Management said underlying credit quality remains solid, supported by prudent risk management and resilient labor markets in most core geographies.
- Brazil Risk Strategy Showing Early ImprovementIn Brazil, Santander's 90-plus-days-past-due ratio stabilized at 4.1%, while the market reached almost 5% in August. The early delinquency ratio improved from around 4.1% in March 2025 to 3.9% in August, while the market deteriorated to 4.7%. Management said the portfolio de-risking and mix changes are intended to improve cost of risk over time.
- Strong U.K. Profitability and Transformation BenefitsU.K. year-to-date profit grew around 22% year-on-year excluding M&A, supported by 4% core revenue growth, an 11% cost decline, and cost of risk of just 12 basis points. Management said the structural hedge, loan repricing, disciplined cost reduction, and TSB integration support the outlook for further earnings growth.
- Positive Deposit and NII OutlookSantander reported increasing transactional deposits across its markets and said customer spreads remain resilient. Spain average deposits increased 5% year-on-year, and management expects low to mid-single-digit deposit growth in Spain next year. Spain remains positively geared to rates, with stated sensitivity of EUR 350 million to a 100-basis-point interest-rate change and expected 2027 NII growth of mid-single digits or somewhat better.
- Loan Growth Focused on Attractive ReturnsExcluding TSB and Webster, group loans increased 6.4% year-on-year and deposits increased 6%. New capital was invested at a RoTE above 21%, 22%, or 23%, and management expects overall group gross loan growth to remain around mid-single digits, with growth concentrated in areas generating returns above the cost of equity.
- Strategic Investments and Future TargetsSantander continues to scale global technology platforms, with its new app live in five countries and its customer interaction platform available in six. AI is making a measurable contribution to productivity, customer service, and risk management. Management reaffirmed its financial North Star of delivering RoTE above 20% by 2028.
- Insurance Growth Opportunity and Danish Compromise ProgressSantander is already under FiCoD supervision and expects to obtain Danish Compromise approval within the next two or three quarters. Management said the approval would provide better capital treatment for future insurance growth, while insurance fees are growing 20% year-on-year.
- Poland Stake RetainedSantander said it is comfortable with its 9.7% stake in Erste Bank Polska and plans to maintain the position for now.
DE:BSD2 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 03, 2027 | 2026 (Q4) | 0.26- | 0.24 | ― | ― |
| Oct 28, 2026 | 2026 (Q3) | 0.230.25 | 0.22 | 13.64% (+0.03) | |
| Jul 22, 2026 | 2026 (Q2) | 0.240.23 | 0.22 | 4.55% (+0.01) | |
| Apr 29, 2026 | 2026 (Q1) | 0.270.36 | 0.21 | 71.43% (+0.15) | |
| Feb 03, 2026 | 2025 (Q4) | 0.210.24 | 0.2 | 20.00% (+0.04) | |
| Oct 29, 2025 | 2025 (Q3) | 0.220.22 | 0.2 | 10.00% (+0.02) | |
| Jul 30, 2025 | 2025 (Q2) | 0.220.22 | 0.2 | 10.00% (+0.02) | |
| Apr 30, 2025 | 2025 (Q1) | 0.200.21 | 0.17 | 23.53% (+0.04) | |
| Feb 05, 2025 | 2024 (Q4) | 0.170.20 | 0.18 | 11.11% (+0.02) | |
| Oct 29, 2024 | 2024 (Q3) | 0.200.20 | 0.17 | 17.65% (+0.03) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed