BCDRF · Banco Santander, S.A.

Banco Santander delivered a strong Q1 2026 performance anchored in disciplined execution of its ONE Transformation program, which drove structural cost reductions and operating leverage. Underlying profit grew 12% to €3.56 billion, with revenue rising 4% to €15.14 billion — propelled by 4% growth in net interest income (€11.019 billion) and 6% growth in net fee income (€3.357 billion), both attributed to higher customer activity and volumes across Retail & Commercial Banking, Openbank, CIB, and Wealth Management. Costs declined 3% to €6.484 billion, lifting the efficiency ratio to 42.8% — a three-point improvement year-on-year — as shared platforms and process standardization offset inflationary pressures and growth investments. Credit quality remained resilient, with cost of risk stable at 1.14%, though a €207 million provision was recorded for UK motor finance matters. The €1.9 billion net capital gain from the January 2026 sale of Santander Bank Polska elevated attributable profit to €5.455 billion (+60% YoY), but management explicitly excludes this from underlying results to reflect ongoing operational performance. Capital strength improved markedly: CET1 rose to 14.4%, supported by organic generation and the Poland disposal, well above the 12.8–13% year-end target. Shareholder returns were reinforced with approval of a €0.125 final dividend (total 2025 dividends €0.24/share, +14% YoY) and a new €5 billion buyback program — €3.2 billion of which is tied to excess CET1 from the Poland transaction. Santander reaffirmed its multi-year targets, citing geographic diversification, scalable digital infrastructure, and disciplined risk management as key enablers amid geopolitical uncertainty.