Santander Shares Rise on Record First-Half Profit and New Buyback Plan
The Spanish banking group announced its strongest first-half results in its history on Wednesday, driven by higher revenue and customer growth, prompting a positive reaction from investors.
Shares in Banco Santander gained on Wednesday after the company reported record profits for the first six months of 2026 and announced a new share buyback program. The bank's attributable profit reached €8.97 billion for the first half, a 31% increase compared to the same period last year. [16, 20, 28] The results were bolstered by a one-time capital gain of €1.9 billion from the sale of its Polish subsidiary. [16]
Excluding one-off items, underlying profit for the first half was €7.3 billion, a 15% rise from the previous year. [16] For the second quarter alone, underlying profit grew 17% to €3.8 billion. [16] Total revenue for the first six months increased by over 6% to €30.8 billion, supported by strong performance in net interest income and fees. [16, 22]
Customer Growth and Efficiency Gains
The bank attributed its strong performance to an increase in customer activity, having added 12 million customers over the period. [16] Growth in loans and customer funds, along with the recent acquisition of TSB in the United Kingdom, contributed to the positive results. [16] Santander also highlighted progress in its efficiency programs, which helped lower costs and improve its cost-to-income ratio to 42.8%. [16]
Outlook and Shareholder Returns
Alongside the earnings, Santander announced an expected €1.8 billion share buyback program related to its first-half performance, which has received approval from the European Central Bank. [16] The institution confirmed it is on track to meet its full-year 2026 targets, which include mid-single-digit revenue growth and a higher profit than the €14.1 billion reported in 2025. [16, 29]
The results come amid a positive economic backdrop for Spain, which is forecast to grow significantly faster than the euro area average in 2026. [7, 8, 15] Investors are also monitoring the European Central Bank's monetary policy meeting this week, with a decision on interest rates expected on Thursday. [5, 6, 11]
Sources
- All News — Why is Banco Santander stock climbing today?
- Why is Banco Santander stock climbing today?
- 2Q 2026 financial results – Santander adds 12 million customers as underlying profit rises 15% to €7.3 billion in the first half
- Why is Banco Santander stock climbing today? – Investing.com
- Banco Santander (SAN) Reports Strong Q2 Earnings with Revenue Growth – GuruFocus
- Banco Santander, S.A. Reports Earnings Results for the Half Year Ended June 30, 2026
- Santander sets further share buybacks as first-half profit advances – Morningstar
- Banco Santander (SAN) Projected to Post Earnings on Wednesday – MarketBeat
- Economic forecast for Spain – European Commission
- ECB Rate Decision: What to Expect on July 23 | Morningstar
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