GET DAILY SIGNALSBanco Santander (SAN) Reports Q3 Attributable Profit of EUR 3.43 Billion With Stronger Underlying Results
Key Takeaways
- Banco Santander reported third-quarter attributable profit of EUR 3.43 billion, down 2% year over year, reflecting impairment and restructuring charges tied to the Webster acquisition.
- Underlying profit rose 19% to EUR 3.85 billion, coming in above the EUR 3.75 billion consensus forecast, driven by strong performances in Spain, the UK, and the US.
- Reported earnings per share reached EUR 0.23, ahead of the EUR 0.22 Visible Alpha consensus, while underlying EPS was EUR 0.26.
- Net loan-loss provisions climbed to EUR 3.49 billion as the bank absorbed sector-wide trends in Argentina, while net interest income and fee income both came in modestly below estimates.
- The bank reiterated all of its 2026 targets and its 2028 three-year plan, including a return on tangible equity (RoTE) above 20% and profit above EUR 20 billion.
Putting the Quarter in Context
Banco Santander's third-quarter report arrives at a pivotal moment for the euro zone's largest bank by market value. The lender has leaned on its diversified footprint across 10 core markets to cushion regional weakness, but that same diversification leaves results sensitive to currency moves in Latin America, where the Brazilian real recently suffered sharp losses. The quarter also marked the first full consolidation of TSB and the initial 40 days of Webster results following its August acquisition, both central to management's strategy of strengthening its developed-market presence. For investors, the report offers a clear read on whether deal-related charges are masking durable operating momentum and whether the bank can stay on track toward its 2026 and 2028 financial targets. I also checked this using Tickeron's AI Screener to see how the stock compares to others in the industry.
A Closer Look at the Numbers
Banco Santander reported third-quarter attributable profit of EUR 3.43 billion ($3.82 billion), a 2% decline from EUR 3.50 billion a year earlier, weighed down by EUR 416 million in impairment and restructuring charges tied primarily to the Webster acquisition. That figure still topped the EUR 3.23 billion consensus forecast from analysts polled by Reuters.
Excluding one-off items, underlying profit climbed 19% year over year to EUR 3.85 billion, edging above the EUR 3.75 billion average estimate. Total income increased 12% to EUR 15.96 billion, or 8% excluding currency effects, supported by higher lending revenue and fee growth. Reported earnings per share came in at EUR 0.23, ahead of the EUR 0.22 consensus, while underlying EPS reached EUR 0.26.
Beneath the headline, however, some key metrics ran soft. Net interest income (NII) rose 1.2% sequentially to EUR 11.83 billion, below the EUR 12.03 billion consensus. Net fee income was also slightly light at EUR 3.50 billion versus expectations of EUR 3.55 billion. Net loan-loss provisions increased to EUR 3.49 billion, above consensus, partly reflecting Argentina's sector-wide trends.
Profitability held firm, with underlying RoTE at 16%, and the Common Equity Tier 1 (CET1) capital ratio at 12.7% following the Webster deal.
How the Market Responded
The market's initial response was cautious. SAN shares traded lower in the pre-market on the day of the release, falling roughly 4% in early trading, as investors weighed a pre-tax profit that landed about 2% below consensus, softer-than-expected NII and fee income, and higher loan-loss provisions. The stock had already come under pressure earlier in the week after Brazil's currency and equities sold off sharply following the surprise re-election of President Luiz Inácio Lula da Silva, highlighting how sensitive Santander's valuation remains to Latin American macro conditions. Citi analysts noted that a potentially higher-for-longer interest-rate environment in Brazil could delay the normalization of the bank's bad loans there.
Looking Ahead: Targets and Risks
Santander reiterated all of its 2026 targets, which exclude the impact of M&A: mid-single-digit revenue growth and lower costs in constant euros, profit above the EUR 14.1 billion reported in 2025, and a CET1 ratio between 12.8% and 13%. Management also reaffirmed its three-year plan presented at February's Investor Day, targeting a RoTE above 20%, profit above EUR 20 billion, and more than 210 million customers by 2028.
Several factors will shape the path ahead. First, the integration of TSB and Webster remains a key execution risk and opportunity, with management signaling confidence that these acquisitions will help lift profits by more than 40% over the next three years. Second, investors should monitor asset-quality trends in Brazil, where provisions have risen and where the interest-rate environment could influence the pace of bad-loan normalization. Currency volatility in Latin America will also continue to affect reported results given the bank's geographic spread.
Finally, watch whether the bank can sustain its efficiency gains, with the cost-to-income ratio improving to 42.6% on a nine-month basis, and whether net interest income and fee income rebound after coming in below estimates this quarter. These metrics will help determine whether the underlying 19% profit growth is durable rather than a one-quarter benefit from acquisitions. From what I see, the bank remains focused on execution here.
Enhancing Research with Tickeron’s AI Screener
I regularly turn to Tickeron's AI Screener when reviewing earnings like these. The tool helps filter stocks by technical patterns, fundamentals, and AI signals, which makes it easier to spot sector comparisons and potential opportunities around names such as SAN without spending hours on manual work.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
SAN in -4.11% downward trend, sliding for three consecutive days on October 26, 2026
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where SAN declined for three days, in 115 of 219 cases, the price declined further within the following month. The odds of a continued downward trend are 53%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 16, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on SAN as a result. In 45 of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 51%.
SAN moved below its 50-day moving average on September 28, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for SAN crossed bearishly below the 50-day moving average on September 29, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 7 of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 47%.
The Aroon Indicator for SAN entered a downward trend on October 27, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +2.07% 3-day Advance, the price is estimated to grow further. Considering data from situations where SAN advanced for three days, in 230 of 314 cases, the price rose further within the following month. The odds of a continued upward trend are 73%.
SAN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 3 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 5 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 21, placing this stock better than average.
The Tickeron PE Growth Rating for this company is 26 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 46 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.653) is normal, around the industry mean (1.515). P/E Ratio (11.820) is within average values for comparable stocks, (11.735). Projected Growth (PEG Ratio) (0.932) is also within normal values, averaging (2.139). Dividend Yield (0.041) settles around the average of (0.035) among similar stocks. P/S Ratio (2.966) is also within normal values, averaging (3.867).
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 59 (best 1 - 100 worst), indicating fairly steady price growth. SAN’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
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