Santander, Europe’s biggest lender by market value, announced a 12.5 percent year-on-year rise in its core first-quarter net profit. The Spanish banking giant posted a record 3.56 billion euros ($4.17 billion) in the eighth quarter, according to market forecasts. The bank’s reported net profit for the quarter rose 60% to 5.46 billion euros, including capital gains of 1.9 billion euros from the sale of a 49% stake in its Polish unit.
The strong performance was primarily due to higher revenues, which rose 4% in the quarter, with total expenses down 2.6%. These factors contributed to higher provisions, partly related to motor compensation in the UK. Santander is a global financial services provider, offering a wide range of banking products and services in 10 core markets. Overall provisions rose 4.6% to 3.23 billion euros, in line with analysts’ expectations, with 207 million euros earmarked specifically for UK motor finance redress at the Open Bank, adding to the 461 million pounds already provided.
Santander’s longstanding diversification has historically protected the bank from economic downturns in individual regions. It recently decided to expand into core developed markets, including the acquisition of TSB in the UK and Webster in the US, with the aim of increasing its profits by more than 40% to exceed 20 billion euros in the next three years. The bank also added 8 million customers annually by the end of March. “Our geographic and balance sheet diversity (…) remains a key strength amid geopolitical uncertainty. Looking ahead, we expect this performance to continue,” noted Santander Executive Chair Anna Boutin. The bank reaffirmed its 2026-28 targets, which include mid-single-digit revenue growth, lower costs in constant euros, higher profitability, and a capital ratio of 12.8-13% for 2026.
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