BCDRF · Banco Santander, S.A.

Banco Santander delivered a strong Q1 2026 performance with underlying attributable profit rising 12% YoY to €3.6 billion (14% in constant euros), driven by 4% revenue growth to €15.1 billion (6% constant euros) from NII expansion (+5% constant) and fee income (+7% constant), reflecting 8 million new customers YoY and robust activity. Costs declined 3% (-1% constant euros), improving efficiency to 42.8% (-3pp), showcasing ONE Transformation benefits including AI generating €35 million business value and cost per payment transaction down 47% YoY. Credit quality remained stable with CoR at 1.14% (+2bps), excluding Argentina improvements noted. Attributable profit surged 60% to €5.5 billion due to €1.9 billion non-recurring gain from Poland business disposal (completed January 9, 2026, at 2.2x TBV). Balance sheet strength evident in CET1 ratio of 14.4% (+1.5pp), supported by organic generation and Poland capital, on track for 12.8-13% year-end target despite pending TSB/Webster impacts. Shareholder value advanced with TNAVps + cash DPS up 19%, €7 billion of €10 billion 2025-26 SBB delivered, including €3.2 billion buyback from Poland proceeds. Business segments shone: Retail profit +9%, Openbank PBT +15% ex-Motor Finance, CIB +16%, Wealth +11%, Payments profit 4x YoY. 2026 guidance affirms mid-single digit revenue growth, costs up modestly vs 2025 €14.1 billion base, double-digit profit growth, positioning for 2028 targets of >€20 billion profit and >20% RoTE.