Banco Santander SA (BSDK) Q3 2026 Earnings Report
DE:BSDK Q3 2026 EPS Results
- Actual EPS
- EUR 0.25
- Consensus EPS
- EUR 0.24
- Beat/Miss
- Beat by +EUR 0.01
- One Year Ago EPS
- EUR 0.23
DE:BSDK Q3 2026 Revenue Results
- Actual Revenue
- EUR 34.82B
- Expected Revenue
- EUR 16.19B
- Beat/Miss
- Beat by +EUR 18.63B
- YoY Revenue Growth
- +11.47%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/28/2026
- Time
- Before Open
- Conference Call
- Wednesday, October 28, 2026
Banco Santander SA's next earnings date is estimated for February 3, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was strongly positive overall. Santander reported record profit, broad-based revenue growth, improving efficiency, resilient credit quality excluding Argentina, strong capital generation, and progress across its transformation and global businesses. The main challenges were Argentina-related provisions, elevated Brazilian credit risk and portfolio de-risking, Mexico's quarterly NII decline, integration and regulatory charges, and competitive deposit markets, but management maintained or raised its outlook and reaffirmed its 2028 targets.
Santander expects to exceed its guidance of more than EUR 14.1 billion profit in 2026, excluding M&A, with revenue growth keeping it on track to deliver its mid single-digit growth target; the group expects year-end CET1 at or above its 12.8% target and at the upper end of its 12%-13% CET1 operating range, with fourth-quarter supervisory charges roughly around 5 basis points and an operational risk charge around 8 basis points, while expecting to do better than 12.8% at year-end. Cost is expected to remain a source of positive operating leverage, with a lower cost base in 2026, and the group expects the cost-to-income ratio improvement of 2.8 percentage points to 42.6% to continue as the norm. Brazil cost of risk is expected at around 1.15% for 2026, improving towards 1.1% in 2027 and 2028, while the tax rate is expected to remain relatively low in Brazil for the coming quarters. Retail Spain deposit beta is expected to normalize towards 18%-19% in the fourth quarter, Spain NII is expected up mid-single digits or maybe a bit better than that in 2027, and Spain deposits are expected to show low to mid-single-digit growth next year. TSB’s Part VII is expected to finish over the first quarter of 2027, migration is expected towards the third quarter of 2027, and its 400 million cost synergy targets are expected to support around 16% RoTE for 2028; Webster puts the U.S. franchise on track to reach 18% post-integration, while Santander’s financial North Star is to deliver an RoTE above 20% by 2028.
- Record Underlying Profit and Strong Earnings GrowthUnderlying profit for the first nine months of 2026 reached a new record of EUR 11.2 billion. Underlying profit grew 14% year-on-year in constant euros, and management expects to exceed its guidance of more than EUR 14.1 billion of 2026 profit excluding M&A, with underlying net profit including M&A expected to be above EUR 15 billion for the full year.
- Broad-Based Revenue GrowthRevenue increased 7% year-on-year, supported by net interest income up 8% and net fee income up 7%. Excluding TSB and Webster, revenue grew 5%, keeping the group on track for its mid-single-digit growth target. All five global businesses contributed to revenue growth.
- Customer Base and Engagement ExpansionThe customer base grew to 189 million, including TSB and Webster, with 17 million new customers added over the last 12 months. Fees per active customer increased 2%, reflecting higher engagement, stronger customer connectivity, and increased use of value-added products.
- ONE Transformation Driving EfficiencyONE Transformation delivered almost 2 percentage points of efficiency improvement through simplification and automation. The group efficiency ratio improved to 42.6%, its best level in 17 years, while net operating income increased 12%. Costs were stable despite consolidating TSB and Webster.
- Positive Operating Leverage Across the GroupCosts declined 2% in Retail and Openbank, which represent approximately 75% of the cost base, even after incorporating TSB and Webster. Group revenue in these businesses grew 6%. Year-to-date costs fell around 2% year-on-year excluding M&A, and third-quarter costs fell 4% quarter-on-quarter excluding M&A.
- Strong Retail and Openbank PerformanceRetail fees grew 8%, cost per active customer declined 5%, and profit increased 12% year-on-year. Openbank delivered positive operational leverage, with profit before tax up 13% excluding motor finance. Digital Bank in the U.S. had raised around EUR 11 billion of deposits since launch.
- Santander U.S. Profitability ImprovementSantander U.S. RoTE improved by around two percentage points in nine months, while profit increased 24% year-on-year excluding Webster. Total expenses declined 3% and provisions fell around 3% year-on-year. Including Webster, third-quarter RoTE reached 12.6%, with the franchise on track to reach 18% RoTE after integration.
- Commercial Banking MomentumThe new commercial banking model generated 17 percentage points of operating jaws in both Spain and the U.K., supported by strong revenue growth and lower costs year-on-year. Webster added scale, deposits, and further cross-border opportunities across the U.S.-LatAm corridor.
- CIB Growth and High ReturnsCIB profit increased 15% year-on-year, supported by strong client activity, efficiency, and capital discipline. CIB revenue increased 14%, and new business was originated at an RoTE of around 22%, while the business maintained one of the best efficiency ratios in the sector.
- Wealth and Insurance ExpansionWealth profit increased almost 20%, driven by client inflows, fee growth, and 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 GrowthGetnet platforms were processing around 2 billion transactions per month, reducing cost per payment transaction by 39%. Ebury revenue grew 15%, EBITDA margin improved to 34%, and profit more than doubled year-on-year. Getnet total payment volumes increased 9%.
- Capital Generation and Strong CET1 PositionThe CET1 ratio was 12.7% after absorbing the 147 basis point impact from Webster. Excluding that impact, CET1 increased around 15 basis points during the quarter. The group generated 59 basis points of capital from profit in the quarter and almost 1 percentage point organically during the year.
- Capital and Shareholder Distribution ProgressUnderlying RoTE improved to 16% and was 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 are expected to reach around EUR 9 billion.
- Credit Quality Remained Resilient Excluding ArgentinaExcluding Argentina, provisions grew broadly in line with organic loan growth and underlying credit quality remained solid. Group cost of risk was broadly stable at 109%, the NPL ratio improved to 2.9%, and coverage remained around 64%. In Brazil, Santander's 90-plus-day delinquency ratio stabilized at 4.1%, while the market reached almost 5% in August.
- Strong Loan and Deposit GrowthExcluding TSB and Webster, group loans increased 6.4% year-on-year and deposits increased 6%. Management expects overall gross loan growth to remain around mid-single digits, with new capital invested at returns above 20%.
- Positive U.K. Performance and Integration ProgressU.K. year-to-date profit increased around 22% excluding M&A, core revenue grew 4%, costs declined 11%, and cost of risk was 12 basis points. The Part VII process for TSB remains on track for completion in the first quarter of 2027, with Santander products and platforms expected to be offered to TSB customers toward the third quarter of 2027.
- U.K. Net Interest Income PositionU.K. loan yields increased 3 basis points year-on-year while the cost of deposits declined 3 basis points. The structural hedge totaled GBP 119 billion, with an average duration of 2.6 years and a third-quarter yield of 3.34%. Management remains constructive on U.K. net interest income.
- Spain Deposit Growth and NII OutlookAverage deposits in Spain increased from EUR 280 billion in the fourth quarter of 2025 to EUR 289 billion in the third quarter of 2026, or around EUR 284 billion to EUR 285 billion excluding a one-off. Average deposits were up 5% year-on-year, and management expects low to mid-single-digit deposit growth in Spain next year. Spain NII was up 8% year-to-date.
- Interest Rate Sensitivity ManagementGroup interest-rate sensitivity has been reduced through active ALCO management. In Brazil, sensitivity to a 100 basis point rate movement declined from EUR 60 million-EUR 70 million six months ago to around half that level. The U.S. is now fully neutral to interest-rate changes, while Spain retains positive sensitivity of approximately EUR 350 million for a 100 basis point rate change.
- Webster Funding and Healthcare Franchise BenefitsWebster's healthcare franchise had approximately $25 billion of assets under management, including $9 billion of deposits used in the bank. Consolidated liquidity management is expected to generate funding synergies in the region of EUR 50 million or potentially more over time.
- Insurance Growth Opportunity and Danish Compromise ProgressThe group is already under FiCoD supervision and expects Danish Compromise approval within the next two or three quarters. Management stated that the benefit would be improved capital treatment for future insurance growth rather than an immediate capital release event. Insurance fees were growing 20% year-on-year.
- Continued Investment in Technology and AIGlobal technology platforms continued to scale, with a new app live in five countries and the customer interaction platform available in six. AI was making a measurable contribution to productivity, customer service, and risk management, while 73% of retail products were digitally enabled.
- 2028 Strategic Targets ReaffirmedManagement stated that the group remains on track to deliver its targets, including an RoTE above 20% by 2028. The group is also on track to end 2026 at or above its 12.8% CET1 target and within its 12%-13% operating range.
DE:BSDK Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 03, 2027 | 2026 (Q4) | 0.26- | 0.25 | ― | ― |
| Oct 28, 2026 | 2026 (Q3) | 0.240.25 | 0.23 | 8.17% (+0.02) | |
| Jul 22, 2026 | 2026 (Q2) | 0.250.23 | 0.23 | 3.56% (+0.01) | |
| Apr 29, 2026 | 2026 (Q1) | 0.250.38 | 0.21 | 76.15% (+0.16) | |
| Feb 03, 2026 | 2025 (Q4) | 0.220.25 | 0.19 | 36.06% (+0.07) | |
| Oct 29, 2025 | 2025 (Q3) | 0.230.23 | 0.19 | 18.98% (+0.04) | |
| Jul 30, 2025 | 2025 (Q2) | 0.230.23 | 0.19 | 16.59% (+0.03) | |
| Apr 30, 2025 | 2025 (Q1) | 0.200.21 | 0.16 | 31.32% (+0.05) | |
| Feb 05, 2025 | 2024 (Q4) | 0.160.19 | 0.17 | 6.12% (+0.01) | |
| Oct 29, 2024 | 2024 (Q3) | 0.200.19 | 0.16 | 20.00% (+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.
