Banco Santander (NYSE: SAN) reported record earnings for the first half of 2026, with a quarterly profit of EUR 3.8 billion and a 14% year-over-year increase in underlying profit in constant euros. The bank’s customer base reached 182 million, aided by the acquisition of TSB, which contributed an additional 4 million customers after the deal closed on April 30.
Key factors in Santander’s performance included a 6% increase in total revenue and a 6% rise in net interest income, which benefited from strong margins and volume growth. The efficiency ratio improved to 42.8%, reflecting a 1% decline in costs, while underlying return on tangible equity rose to 15.6%. The bank has also received ECB approval for a new buyback program of up to EUR 1.8 billion.
Despite challenges in Argentina affecting credit quality, Santander’s common equity tier 1 ratio remained strong at 14%. The bank expects to maintain its 2026 profit guidance of over EUR 14.1 billion, aiming for returns on equity above 20% by 2028.
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