Banco Santander, S.A. (NYSE:SAN) is one of the Best European Bank Stocks to Buy According to Hedge Funds. On May 12, RBC Capital raised its price target on Banco Santander, S.A. (NYSE:SAN) from EUR 12.5 to EUR 12.75 and maintained an Outperform rating on the shares.

​The rating follows Banco Santander’s fiscal Q1 2026 earnings reported on April 29. The bank posted record first-quarter net profits of 3.56 billion euros, reflecting 12.5% increase year-over-year. This was driven by strong performances in Spain and Mexico. Management noted that taking into account the capital gains, total net profit surged 60% to 5.46 billion euros. The bank also reaffirmed its 2026 to 2028 targets, including mid-single-digit revenue growth and a capital ratio of 12.8% to 13%.

​According to a report by Reuters, growth for the quarter was broad-based across most markets. The profit growth was mainly led by a 12% increase in Spain, driven by rising lending and a healthy economy. Moreover, while Mexico and Brazil also posted gains, it was offset by Portugal and Argentina. The profits in Argentina dropped 60% due to worsening economic conditions.

​Banco Santander (NYSE:SAN) is a Spain-based company that operates as a retail and commercial bank. Its segments are scattered across Continental Europe, the United Kingdom, Latin America, and the United States.

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