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Banco Santander ( (ES:SAN) ) has shared an update.
Banco Santander has unveiled its 2026-2028 strategic plan at an Investor Day in London, targeting an expansion of its customer base from 180 million in 2025 to more than 210 million by 2028, while further consolidating its position as a leading bank by customers across Europe and the Americas. The bank aims to deliver profit of more than €20 billion, a return on tangible equity above 20%, an efficiency ratio of about 36% and high-teens growth in tangible net asset value plus dividends, underpinned by its ONE Transformation programme and increased use of data and AI.
Management plans to maintain a CET1 ratio around 13% and continue returning roughly 50% of profits to shareholders via cash dividends and buybacks, with the cash component rising to about 35% of profits from 2027 results onward. Santander has also proposed a higher final cash dividend for 2025, lifting the total cash payout for that year by over 14%, and is executing a roughly €5 billion share buyback as part of a broader commitment to at least €10 billion in buybacks from 2025-2026 earnings.
The strategy leans on scaling common technology platforms, simplifying products and processes and embedding AI to generate over €1 billion annually in business value by 2028, while boosting digital sales and reducing cost-to-serve across its five global businesses. Recent acquisitions of TSB in the UK and Webster in the US are expected to help its UK and US operations reach returns on tangible equity of around 16% and 18% respectively, positioning Santander among the most profitable peers in those markets and increasing the share of earnings from hard-currency jurisdictions.
More about Banco Santander
Banco Santander is a global banking group headquartered in Spain, with a strong presence across Europe and the Americas. It operates a diversified model spanning retail banking, investment banking (CIB), wealth management, digital bank Openbank and payments, leveraging technology and AI to build a global financial services platform with scale in key hard-currency markets such as the UK and the US.
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