Santander (LSE:BNC) told investors it has started 2026 strongly and expects profit to rise versus the €14.1bn reported in 2025, driven by continued customer and revenue growth, falling costs and stable credit quality, the company said at today’s annual general meeting.
"For the first quarter of 2026, we have continued the positive trends of previous years, growing both our customer base and revenue, while costs are expected to decline in constant euros year-on-year, resulting in an improvement in efficiency of approximately 250 basis points. As a result, we are on track to increase profit in 2026 year-on-year." — Ana Botín, executive chair
Management confirmed the group’s 2026 targets: mid‑single digit revenue growth, a year‑on‑year reduction in costs in constant euros, a stable cost of risk and a CET1 ratio target of 12.8–13%. Santander said capital generation strengthened in Q1 with the CET1 ratio higher than the December 2025 year‑end, and credit costs remain in line with expectations.
Ana Botín added: "Our balanced presence across different countries and businesses significantly mitigates risk by reducing volatility, making our results more predictable throughout the cycle." The AGM approved the capital increase required to deliver Santander shares for the acquisition of Webster Financial Corporation — the corporate step Santander needed to progress the US deal.
Shareholder returns will be lifted: the meeting approved a final cash dividend of 12.5 euro cents per share payable on 5 May 2026, taking total cash dividend for 2025 to 24 euro cents per share, up more than 14% year‑on‑year. The group said total shareholder remuneration against 2025 results will be approximately €7.05bn (around 50% of attributable profit), split roughly equally between cash dividends and share buybacks. Santander flagged a c.€5bn buyback launched in February — c.€1.8bn related to H2 2025 results and c.€3.2bn tied to excess capital from the sale of 49% of Santander Poland — with nearly half already executed.
Looking further out, the bank reiterated its 2026–28 ambitions: exceed €20bn in profit by 2028, deliver RoTE above 20% and grow customers to more than 210 million. Santander also said artificial intelligence is already delivering benefits across the group and is expected to generate more than €1bn in business value (savings and revenue) by 2028.
Shareholders also approved the appointment of Deborah Vieitas as an independent director, replacing Homaira Akbari subject to regulatory approval. Ana Botín added: "We are delighted to welcome Deborah to the board. Her perspective and knowledge of the Brazil market will be a valuable addition as we continue executing our strategy."
