BCDRF · Banco Santander, S.A.

Banco Santander reported a strong first quarter of 2026, with profit attributable to the parent reaching EUR 5,455 million, a 60% increase year-on-year. This result was significantly boosted by a EUR 1,895 million capital gain from the completion of the Poland disposal in January 2026. Excluding this and other non-recurring items, underlying profit attributable to the parent was EUR 3,560 million, up 12% year-on-year (14% in constant euros), marking an eighth consecutive quarterly record. The underlying performance was driven by solid revenue growth, with net interest income up 5% and net fee income up 7% in constant euros, reflecting higher activity and transactionality. Total costs declined 1% in constant euros, leading to an efficiency ratio improvement to 42.8% from 45.8% a year ago. Credit quality remained robust, with the cost of risk stable at 1.14% and the NPL ratio at 3.00%. The CET1 ratio improved to 14.4%, up 0.9 pp from December 2025, supported by organic capital generation and the Poland disposal. The Group also announced an agreement to acquire Webster Financial Corporation for USD 12.2 billion, expected to close subject to regulatory and shareholder approvals. Additionally, a EUR 5,030 million share buyback programme was approved, including an extraordinary EUR 3,200 million buyback from the Poland disposal. Management expressed confidence in meeting 2026 targets and progressing towards the 2028 strategic goals, including a RoTE above 20%.