| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 86 | 9.7x | 17.3x | Top tier | |
Growth | 69 | 77.0% | 7.1% | Top tier | |
Quality | 82 | — | — | Top tier | |
Safety | 11 | — | — | Bottom tier | |
Capital Return | 71 | 2.66% | 0.06% | Top tier | |
Momentum | 74 | 46.2% | -1.6% | Top tier | |
Sentiment | 68 | 10 | 3 | Top tier |
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, 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. operates across Europe and the Americas through five global businesses: Retail Banking, Openbank, Corporate and Investment Banking CIB, Wealth Management, and Payments. It generates income from net interest on lending and funding, and from service, investment, insurance, and payment fees; the vast majority of net interest income comes from Retail Banking and Openbank. Its customer base reached 182 million at the presentation of results for Q2 of fiscal year 2026, ended 2026-06-30, after adding more than 12 million customers compared with the same period of the previous fiscal year, including 4 million customers from TSB.
Net revenue in Q2 of fiscal year 2026, ended 2026-06-30, was approximately 17.8 billion euros, net income was 3.6 billion euros, and diluted earnings per share were 0.24 euros. The operating margin calculated by EL7 was 27.2%, compared with 30.8% in Q2 of fiscal year 2025, ended 2025-06-30, when net income was 3.4 billion euros. This comparison shows higher profit alongside a lower operating margin, while differences in the basis of net revenue prevent a year-over-year comparison of that item.
Costs are concentrated in Retail Banking and Openbank, which account for 75% of the group's cost base according to the presentation of results for the first half of fiscal year 2026, ended 2026-06-30. Meanwhile, CIB, Wealth Management, and Payments broaden fee-based income sources, with CIB fees in the United States growing 40% compared with the same period of the previous fiscal year. The TSB transaction closed on 2026-04-30, so results for Q2 of fiscal year 2026 included only two months of contributions from the acquired bank.
Q2 FY2026
When: 2026-10-28
Operating margin at the 27.2% level in the expected earnings announcement
Trailing 12-month cost of risk at the 1.15% level in the expected earnings announcement
When: Fiscal year 2026
The industry-multiple value is 13 dollars, within a range of 11 dollars to 15 dollars, valuing book value at a median multiple of 1.5 across 16 peer companies. The median target from 9 analysts is 3.00 dollars in the 2026-10-19 snapshot and is considered a low-confidence reference indicator reflecting analysts' growth expectations. The two methods diverge clearly, with the entire industry-multiple valuation range above the median target, because the former prices the bank based on its books and peer multiples, while the latter reflects analysts' assumptions about its expected trajectory. Analyst targets tend to be optimistic by nature, but this general tendency does not negate their lower value here compared with the industry-multiple method, nor does it make either value a standalone judgment on valuation.
Figures in the text are as of 2026-10-20; the live price is shown at the top of the page.
Net income was 3.6 billion euros in Q2 of fiscal year 2026, ended 2026-06-30, with diluted earnings per share of 0.24 euros. Santander also presents underlying indicators that exclude impacts related to Poland and restructuring costs associated with TSB's integration. A distinction must therefore be made between reported profit and underlying performance measures, and an increase in either does not mean that all margins improved; the operating margin calculated by EL7 was 27.2% in that quarter.
The TSB transaction closed on 2026-04-30, adding approximately 4 million customers to the group, while results for Q2 of fiscal year 2026, ended 2026-06-30, included only two months of contributions. Santander's United Kingdom customer base reached 27 million, including 16 million active customers, at the results presentation on 2026-07-22. Management targets synergies of at least 400 million euros and a return on tangible equity of approximately 16% in fiscal year 2028, but integration requires restructuring and is taking place in a market with strong competition for mortgages and deposits.
Automated analysis for informational purposes only — not investment advice.
Achieving net profit exceeding 14.1 billion euros excluding mergers and acquisitions
CET1 ratio at the 12.8% target
The cost of risk for the trailing 12 months through 2026-06-30 was approximately 1.15%, falling to 1.07% excluding Argentina. Management explained on the 2026-07-22 call that it had halted lending in Argentina, while high interest rates in Brazil are putting pressure on some companies and small and medium-sized enterprises. Brazil accounts for 9% of group loans according to the same presentation, so geographic diversification limits concentration but does not eliminate the risk of higher provisions.
The group uses Santander and Openbank deposits to fund its consumer and auto business in the United States, reducing reliance on higher-cost wholesale funding, according to the 2026-07-22 call. Openbank Pay also served more than 2.6 million customers at the results presentation, expanding its embedded finance presence. However, Openbank Europe recorded a total auto-finance-related impact of 245 million euros in the first half of fiscal year 2026, ended 2026-06-30, so charges from this business remain an important part of assessing its profitability.
The CET1 ratio was approximately 14% at the end of Q2 of fiscal year 2026, ended 2026-06-30, after absorbing TSB's impact of 55 basis points. In the 2026-07-22 presentation, the bank announced European Central Bank approval for share repurchases of up to 1.8 billion euros against fiscal year 2026 results, with the necessary corporate approvals still outstanding. Meanwhile, management estimated Webster's impact at approximately 150 basis points of CET1 and targeted a ratio of 12.8% by the end of fiscal year 2026, so balancing expansion and distributions depends on continued capital generation.