Santander posts 15% rise in first-half underlying profit
Banco Santander reported H1 2026 underlying profit of €7.3 billion, up 15% from a year earlier. The bank's underlying RoTE was 15.6%, its CET1 ratio was 14.0%, and its efficiency ratio was 42.8%. UBS maintained a buy rating and €14.30 target, while the shares traded at €12.59 on Tradegate, down 0.66%.
Santander's first-half 2026 update put underlying profit at €7.3bn, a 15% annual increase. Supporting metrics included 15.6% underlying return on tangible equity, a 14.0% CET1 ratio and a 42.8% efficiency ratio. The bank also reported attributable profit of €8.97bn, which it distinguishes from the underlying figure.
UBS reiterated a buy rating and €14.30 target on 21 Sept 2026; analyst Ignacio Cerezo noted a seasonal softening in US auto securitization that was milder than a year earlier. Santander's next scheduled update is nine-month 2026 results on 28 Oct 2026. Shares on Tradegate were €12.59, down 0.66%.
Santander's stronger underlying earnings and solid capital ratio could support its capacity to lend to households and businesses, though the share price dip may matter mainly to investors. A higher profit may influence dividends, employment, or credit availability over time, but those outcomes are not guaranteed and depend on regulation, economic conditions, and management decisions. Customers, employees, shareholders, and borrowers in its markets may all be affected in different ways.