| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 71 | 12.2x | 17.8x | Top tier | |
Growth | 51 | 17.7% | 7.1% | Around median | |
Quality | 80 | — | — | Top tier | |
Safety | 10 | — | — | Bottom tier | |
Capital Return | 47 | 2.20% | 2.12% | Around median | |
Momentum | 94 | 50.5% | 2.9% | Top tier | |
Sentiment | 82 | 10 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Banco Santander, S.A. is an international banking group that earns income from net interest income and fees across five global businesses: Retail Banking, Openbank, Corporate & Investment Banking CIB, Wealth Management, and Payments. The group serves 182 million customers, an increase of more than 12 million year-on-year in Q2 FY 2026, including 4 million customers added through the TSB acquisition, which closed on April 30, 2026; it also benefits from its presence across Europe and the Americas and from cross-selling CIB, insurance, and payments products to its banking customer base.
Banco Santander recorded a record quarterly profit of €3.8 billion in Q2 FY 2026, and underlying profit rose 14% year-on-year in H1 FY 2026. Revenue grew 6% in constant euros, driven by a 6% increase in net interest income and a 7% increase in fees, while costs fell 1%, the efficiency ratio improved to 42.8%, and net operating income rose 11%. The call did not disclose an absolute quarterly revenue figure, while older EDGAR data showed revenue of $74.2 billion and net income of $8.2 billion in FY 2017.
The growth mix was broad in H1 FY 2026: CIB revenue rose 16%, Retail Banking fees 6%, Openbank fees 6%, and Payments fees 8%, with payment volumes growing 10%. Retail Banking profit rose 12%, CIB 17%, and Wealth Management 19%, while Ebury revenue grew 17%, its EBITDA margin improved to 33%, and its profit quadrupled. The CET1 ratio was approximately 14% after absorbing the 55-basis-point impact of TSB, while underlying return on tangible equity rose to 15.6% and underlying earnings per share increased 20%.
The analyst consensus is rated “Buy,” but the average price target, highest target, and lowest target are identical at $3, meaning there is no actual range of estimates. This target is below the low end of the 52-week range of $9.31 and far from its high of $15, while the price-to-earnings ratio is unavailable; therefore, the available figures provide a conflicting valuation signal that does not allow a reliable premium or discount to be derived from consensus alone.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Quarterly profit reached a record €3.8 billion, while underlying profit rose 14% year-on-year in H1 FY 2026. Revenue grew 6% in constant euros, supported by a 6% increase in net interest income and a 7% increase in fees. At the same time, costs fell 1% and the efficiency ratio improved to 42.8%, lifting net operating income by 11%.
The TSB acquisition closed on April 30, 2026, and the bank included two months of its results in Q2 FY 2026, adding four million customers to the group. Santander is targeting savings of at least €400 million and a return on tangible equity of approximately 16% for the U.K. business by 2028, but it recorded €250 million in non-recurring TSB items and expects an additional €250 million. The acquisition of Webster Financial was completed on August 20, 2026, adding a U.S. franchise that generated a 17% return on tangible equity excluding transaction costs, in exchange for a capital impact estimated by management at approximately 150 basis points.
Management maintained guidance for more than €14.1 billion in net profit in FY 2026 excluding mergers and acquisitions. This followed a 14% increase in underlying profit in H1 FY 2026, with performance described as slightly ahead of plan. Management also expects pre-tax profit to improve in H2 compared with H1 FY 2026 and an effective tax rate near the lower end of the 27%–28% range.
Automated analysis for informational purposes only — not investment advice.
Cost of risk was 1.15% in Q2 FY 2026, compared with an initial plan range of 1%–1.1%. The main pressures came from Argentina and certain single names in CIB, while cost of risk excluding Argentina improved by two basis points to 1.07%. In Brazil, cost of risk was approximately 4.14%, and management expects it to remain at a maximum of approximately 4.2% during FY 2026.
The initiative reduced the number of products in the catalog from approximately 10 thousand to around 4 thousand over three and a half years through Q2 FY 2026, while continuing simplification, automation, and the removal of legacy systems. In Retail Banking and Openbank, which represent 75% of the cost base, revenue rose 4% and costs fell 3%. At the group level, efficiency improved by three percentage points, while headcount fell by more than two thousand employees between December 2025 and June 2026 despite the inclusion of TSB.
Banco Santander received ECB approval for a new share buyback program of up to €1.8 billion against FY 2026 results, with the relevant corporate approvals still required. After including the ongoing program, management expects total buybacks to reach approximately €9 billion, close to the commitment to distribute at least €10 billion for FY 2025 and FY 2026. This coincided with 20% growth in underlying earnings per share and a 19% increase in tangible net asset value plus cash distribution per share in H1 FY 2026.
