Santander Reaffirms Targets, Boosts 2025 Dividend by 14%

Santander Projects Q1 Efficiency Gain of 250 Basis Points

Banco Santander projects a strong start to 2026, forecasting an efficiency improvement of approximately 250 basis points in the first quarter. At the bank's annual general meeting on March 27, Executive Chair Ana Botín stated that the positive trends of previous years have continued, with growth in both customers and revenue. Costs are expected to decline in constant euros year-over-year, and the bank’s CET1 capital ratio increased from its December 2025 level. This performance keeps Santander on track to increase its full-year 2026 profit above the €14.1 billion recorded in 2025, with management reaffirming all targets, including mid-single-digit revenue growth and a CET1 ratio between 12.8% and 13%.

In a volatile and uncertain world, where the unpredictable happens every day, diversification is a distinctive advantage for Santander.

— Ana Botín, Executive Chair.

Bank Confirms 14% Dividend Increase, Continues €5B Buyback

Santander is boosting shareholder returns based on its 2025 performance. The AGM is set to approve a final cash dividend of 12.5 euro cents per share, payable on May 5, 2026. This brings the total cash dividend for 2025 to 24 euro cents per share, marking a year-over-year increase of over 14%. Total shareholder remuneration against 2025 results will reach approximately €7.05 billion, representing a 50% payout ratio. This includes a c.€5 billion share buyback program that commenced in February, which is already nearly half-executed. For the 2026-2028 period, the bank plans to maintain a 50% ordinary payout target.

Diversification and AI Drive Toward €20B Profit Goal

Santander's leadership credits its strategic focus on geographic diversification and technology for its resilience and ambitious growth targets. The bank reaffirmed its goal to exceed €20 billion in profit by 2028, with a targeted Return on Tangible Equity (RoTE) of over 20%. Key to this strategy is the acquisition of Webster Financial Corporation, which is expected to accelerate Santander's transformation in the U.S. market. Furthermore, the bank is leveraging artificial intelligence to enhance risk management and productivity, expecting AI to generate more than €1 billion in business value through cost savings and new revenue by 2028.