Santander posts double-digit profit and revenue growth in 3rd quarter

(AWP Alliance News) - Banco Santander SA on Wednesday reported a 16% rise in third-quarter pretax profit, driven by higher revenue and customer activity, as the Spanish lender reiterated its full-year targets.

Shares in Banco Santander opened 3.9% lower at EUR10.82 in Madrid on Wednesday.

The Madrid-based bank said pretax profit climbed 16% to EUR5.42 billion in the three months to September 30, while attributable profit slipped 2% to EUR3.43 billion.

Total income rose 12% to EUR15.96 billion from EUR14.28 a year prior, while net operating income increased 17% to EUR9.25 billion from 7.91 billion.

Net interest income increased 14% to EUR11.83 billion from EUR10.35 billion a year earlier, while net fee income rose 11% to EUR3.50 billion from EUR3.16 billion.

Loan-loss provisions increased 22% to EUR3.49 billion, while total costs rose 5% to EUR6.71 billion.

For the first nine months of 2026, attributable profit increased 20% to EUR12.41 billion, including a EUR1.90 billion net capital gain from the disposal of Santander Bank Polska, partly offset by EUR666 million in charges related to acquisitions.

Underlying profit rose 16% to a record EUR11.18 billion, while revenue increased 8% to EUR46.81 billion.

Santander added 17 million customers over the past year, bringing its total to 189 million, including 8 million gained through its acquisitions of TSB and Webster, completed in April and August respectively.

Santander's common equity tier 1 capital ratio stood at 12.7% at the end of September, reflecting the impact of the Webster acquisition.

In the UK, Santander UK Group Holdings PLC reported a 5.8% fall in pretax profit to GBP1.16 billion in the first nine months of 2026 from GBP1.23 billion a year earlier, reflecting provisions for historical motor finance commission payments and higher restructuring costs, partly offset by a GBP96 million contribution from the TSB acquisition.

Net interest income in the UK arm rose 17% to GBP3.85 billion, while net operating income increased 18% to GBP4.12 billion. Santander UK reiterated its target of achieving a 16% return on tangible equity and at least GBP400 million in cost synergies by the end of 2028.

Santander Executive Chair Ana Botin said: "We once again delivered strong results in the first nine months, with earnings per share up 25% and growing momentum across the group."

The group reiterated its 2026 targets, excluding acquisitions, for mid-single-digit revenue growth, lower costs and profit above the EUR14.1 billion recorded in 2025. It also expects a year-end CET1 ratio of between 12.8% and 13%.

Santander confirmed that its interim dividend of 12.70 euro cents per share, up 10% year-on-year, will be paid on November 2.

Santander also launched a share buyback programme of up to EUR1.8 billion in August, bringing total planned shareholder returns against first-half results to EUR3.66 billion.

By Eva Castanedo, Alliance News senior economics reporter

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