Santander achieved a record ordinary profit of €11.176 billion in the first nine months of 2026, an increase of 16%. This result was supported by strong customer activity and progress in the execution of ONE Transformation, which is generating efficiency improvements and higher revenues. The attributable profit reached €12.405 billion, a 20% increase, and includes a net capital gain of €1.895 billion following the completion of the sale of Santander Bank Polska in January, partially offset by charges of €666 million, including integration costs for TSB and Webster. The ordinary results exclude these non-recurring items to provide a comparable view of the business's evolution.
Santander continued to increase its number of customers, with 17 million new customers in the last twelve months, bringing the total to 189 million. This growth reflects solid commercial activity across all businesses and the incorporation of eight million customers from TSB and Webster upon the completion of both acquisitions on 30 April and 20 August, respectively.
The group continued to enhance profitability and shareholder value, with an ordinary return on tangible equity (RoTE) of 16.0% (+1.1 percentage points). The accounting earnings per share (EPS) grew by 25% and the tangible net asset value (TNAV) plus the cash dividend per share increased by 11%, reflecting higher profitability and discipline in capital allocation.
Business volumes remained strong. Customer credit and resources (deposits plus investment funds) both increased by 16% in constant euros, supported by solid commercial activity across all global businesses and the incorporation of TSB and Webster. Without these acquisitions, credit increased by 6% and customer resources by 8% (deposits +6%) in constant euros. Credit growth was driven by mortgages in Retail, auto financing in Openbank, and double-digit growth in CIB and Wealth, focusing on efficient capital use. Revenues increased by 8%, to €46.807 billion. The interest margin grew by 10% (+7% excluding M&A), to €34.614 billion, and fee income rose by 9% (also +9% excluding M&A), to €10.349 billion, reflecting increased activity and customer engagement, and volume growth across all global businesses. Around 95% of the group's revenues are linked to customer activity.
Total costs fell by 1% excluding TSB and Webster (-2% in constant euros), reflecting ongoing efficiency improvements derived from ONE Transformation, the group's programme to advance towards a common operating model with shared global platforms. The net margin increased by 14%, to €26.882 billion, and the efficiency ratio improved by 2.8 percentage points, to 42.6%, thanks to a structural reduction in costs and higher revenues. The group continued to deploy artificial intelligence at scale across all its businesses, generating €194 million in business value (more revenues and lower costs and provisions) during the year, thanks to improved customer service, higher productivity, and business growth.
Provisions for insolvencies increased by 13% (+10% in constant euros), mainly due to market trends in Argentina. Excluding Argentina, provisions increased by 6% in constant euros, in line with organic credit growth. Credit quality remained strong, with a cost of risk of 1.16%, supported by prudent risk management, diversified exposure, and low unemployment levels in the markets where the bank operates. The non-performing loan ratio improved to 2.90% from the previous quarter (-3 basis points) and remains low, with a coverage ratio of 64%.
The CET1 capital ratio stood at 12.7%. Excluding the impact of -147 basis points from the acquisition of Webster, the ratio increased by 14 basis points in the quarter, with 19 basis points of net organic capital generation. Santander is on track to meet its CET1 target for year-end, aiming to be between 12.8% and 13%, at the upper end of its operational range of 12-13%.
Santander continues to offer attractive shareholder remuneration. In September, the board approved an interim cash dividend of €0.127 per share based on the results of 2026, a 10% increase from the equivalent of 2025, which will be paid on 2 November. In August, the bank launched a share buyback programme of up to approximately €1.8 billion based on the results of the first half of 2026. Total shareholder remuneration based on the results of the first half of 2026 will amount to approximately €3.660 billion, an 8% increase from a year earlier and equivalent to around 50% of the ordinary profit for the first half. With this programme, Santander will have completed around €9 billion of its plan to distribute at least €10 billion through share buybacks based on the results of 2025 and 2026, and excess capital.
