Half Year 2026 Banco Santander SA Earnings Call Transcript
Key Points
- Banco Santander SA (SAN) reported a record quarterly profit of $3.8 billion, marking the best half-year performance ever.
- The company achieved strong revenue growth across global businesses, supported by a 12 million increase in customers year-on-year.
- Efficiency improved by 3 percentage points, and underlying Return on Tangible Equity (ROTE) increased to 15.6%.
- The CET1 ratio remains strong at 14%, indicating a robust capital position.
- Net interest income (NII) increased by 6% year-on-year, driven by margin resilience and profitable volume growth.
- Loan loss provisions were impacted by portfolio deterioration in Argentina, reflecting sector-wide trends.
- The cost of risk remains elevated at 115 basis points, slightly above the initial target of 100 to 110 basis points.
- Trading income in the Corporate and Investment Banking (CIB) segment was weaker due to lower volatility and business mix.
- The integration of TSB and associated restructuring costs have impacted financial results.
- The macroeconomic environment in Brazil remains challenging, with slower-than-expected rate normalization affecting revenues.
Good morning, everyone, and thank you for joining Santander's first-half 2026 results presentation.
Today's presentation will follow the usual structure.
First. Hector will talk about our results with a special focus on the performance of our global businesses.
Jose will then cover the financial results in more detail.
Finally, Hector will close with the outlook before we open the line for Q&A.
Before we start, I would like to highlight that this is the first quarter in which TSB is included in our results after the acquisition closed on the 30th of April.
Our underlying metrics exclude the impact of Poland and TSB integration-related restructuring costs. To provide a clearer view of the underlying trends.
With that, Hector, over to you.
Thanks, Rahul, and good morning to everyone.
Q2 was another record quarter for Santander,
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