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Quarterly Profit: $3.8 billion, a new record for Banco Santander.

Customer Growth: 182 million customers, up by more than 12 million year-on-year.

Efficiency Improvement: Improved by 3 percentage points.

Underlying ROTE: Increased to 15.6%.

CET1 Ratio: 14%, including the impact of TSB.

Revenue Growth: Up 6% in constant euros.

Net Interest Income (NII): Increased 6% year-on-year.

Record Fees: Up 7% across all businesses and countries.

Underlying Profit Growth: 14% year-on-year.

Retail Revenue: Grew 4%, with costs falling by 3%.

Commercial Revenue in Spain: Up 17%, with costs down 3% year-on-year.

Retail Fees Growth: 6% year-on-year.

Retail Underlying Profit: Grew 12% year-on-year.

Profit Before Tax (excluding motor finance): Grew 15%.

CIB Profit Growth: 17% year-on-year.

Wealth Profit Growth: 19% year-on-year.

Payments Revenue Growth: 17%, with EBITDA margin improving to 33%.

Underlying Earnings Per Share Growth: 20%.

TNAP plus Dividend Per Share Growth: 19%.

Share Buyback Program: Approval for up to EUR1.8 billion against 2026 results.

Release Date: July 22, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Banco Santander SA (NYSE:SAN) reported a record quarterly profit of $3.8 billion, marking the best half-year performance ever.

The company achieved strong revenue growth across global businesses, supported by a 12 million increase in customers year-on-year.

Efficiency improved by 3 percentage points, and underlying Return on Tangible Equity (ROTE) increased to 15.6%.

The CET1 ratio remains strong at 14%, indicating a robust capital position.

Net interest income (NII) increased by 6% year-on-year, driven by margin resilience and profitable volume growth.

Negative Points

Loan loss provisions were impacted by portfolio deterioration in Argentina, reflecting sector-wide trends.

The cost of risk remains elevated at 115 basis points, slightly above the initial target of 100 to 110 basis points.

Trading income in the Corporate and Investment Banking (CIB) segment was weaker due to lower volatility and business mix.

The integration of TSB and associated restructuring costs have impacted financial results.

The macroeconomic environment in Brazil remains challenging, with slower-than-expected rate normalization affecting revenues.

Q & A Highlights

Q: Can you update on your guidance for NII growth in Spain, given the strong first-half performance? A: In Spain, NII is up 12% year-on-year, driven by 4% revenue growth and an increase in active customers. We are growing by 200,000 customers per quarter. The ALCO bond portfolio is at $60 billion with a yield of 3.3% and a six-year duration. We plan to maintain this level to keep interest rate sensitivity stable. We expect the strong NII trend to continue into the second half.

Story Continues

Q: How do you see activity levels and cost of risk evolving, especially in Argentina and the U.S.? A: We expect NII to improve in Europe and Open Bank, with fees growing faster than NII. The cost of risk is expected to stabilize around 115 bps, with improvements in Argentina and usual seasonality in the U.S. We are on track to exceed our $14.1 billion net profit guidance for 2026.

Q: Can you provide an update on the Brazil market and the impact of the Gravity implementation? A: Brazil’s macro environment is stable, with a soft landing expected. NII increased by 2% year-on-year, driven by Open Bank and CIB. We are focusing on profitable segments and expect cost of risk to remain stable at around 4.2% for the year. The new CEO is expected to drive further improvements.

Q: How is the TSB integration progressing, and what are the expected cost savings? A: The TSB integration is on track, with $250 million in non-recurring items already included. We expect $400 million in synergies by 2028. The Part 7 submission is complete, and we are confident in delivering the expected cost savings.

Q: What is the outlook for Mexico, considering the macro and competitive environment? A: Mexico’s macro environment is stable, with ongoing trade negotiations. We see opportunities in mid-size corporates and SMEs, and we are cautious with credit cards and personal loans. The competitive environment is manageable, and we are focusing on transactional deposits to improve funding costs.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.