Banco Santander: 2Q26 First Look - Nothing to get too excited about

Research evidence excerpt

Banco Santander: 2Q26 First Look - Nothing to get too excited about

Spain | Banks

Banco Santander EquityJulyResearch22, 2026

FLASH NOTE2Q26 First Look - Nothing to get too excited

RATING BUYabout

PRICE €11.91^

An in-line net profit print, with pre-prov dynamics in line but higher

impairments. TSB is now fully integrated into Group profits, with 1 month PRICE TARGET | % TO PT €12.00 | +1%

contribution in 2Q26. NII dynamics look strong, and so do costs on One 52W HIGH-LOW €12.59 - €7.14

Transformation delivery, albeit there is some pressure on cost of risk, mainly FLOAT (%) | ADV MM (USD) 104.0% | 322.84

coming from Argentina. By key market Spain, UK and US performing well, MARKET CAP €163.1B | $186.0B

while Brazil lagging given the macro backdrop. 2026 and medium term TICKER SAN SM ^Prior trading day's closing price unless otherwise

guidance unchanged. noted. Price: Closing price on 20 January 2026

Santander reported 2Q26 net attributable profit of 3,518m EUR, or 3,768 excluding non-

recurring items (250m EUR TSB integration cost), which was in line with company-compiled

consensus of 3,771m EUR. The print includes 1 month contribution of TSB to profits (c54m

EUR). PBT was a 2% miss on higher impairments, with pre-prov profits in line. Revenues

were in line, with NII 2% above and fees 1% above, but trading income a350m EUR miss (FX

hedges in corporate center). Costs where in line, with a C:I ratio in the quarter of 42.8%. Total

provisions were 4% above consensus, and include a 39m EUR provision for UK motor finance,

transformation costs, higher Retail provisions in Argentina and single names in CIB Europe

and Brazil. Santander is reiterating the 2026 and investor day targets.

NII was 2% above cons, up 6% q/q and up 10% y/y.•

Fee income was 1% above consensus.