Banco Santander plans to exceed €20bn ($23.6bn) in profits over the next three years by leveraging cost cuts and expansion in the US and UK markets.
On 25 February, the bank released its strategic objectives for 2026-2028 during its Investor Day in London .
It anticipates return on tangible equity of above 20% by the end of this cycle.
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The bank intends to grow its customer base from a projected 180 million in 2025 to over 210 million by 2028, maintaining its large presence in both European and American markets.
This follows the bank’s $12.2bn deal to buy Webster Financial, the parent company of Webster Bank. The deal, announced earlier this month and slated to close in the second half of 2026, is expected to offer Santander a strong foothold in the US Northeast.
Meanwhile, in July 2025, Santander agreed to acquire TSB Banking Group from Sabadell in an all-cash transaction valued at up to £2.9bn ($3.9bn).
The Spanish group forecasts “mid-single” digit growth in revenue and annual reductions in total costs, with the efficiency ratio expected to reach around 36% by the end of 2028.
Annual earnings per share growth is projected to be in double digits during this period.
Santander plans to raise its cash dividend payout to about 35% of group profit from results published for 2027 onwards and allocate approximately 15% of profit to share buybacks.
The bank expects the cash dividend per share to be more than double that of 2025 by the end of the plan.
The board intends to maintain an overall payout ratio of about 50%, combining cash dividends and share buybacks, subject to approvals.
So far, Santander has committed to distributing at least €10bn through share buybacks from 2025–2026 earnings, with €5bn launched earlier in June and €1.7bn completed in 2025.
Any capital surplus above a set threshold of 13% is expected to be returned to shareholders.
For 2025, Santander reported attributable profit of €14.1bn, concluding its previous three-year cycle.
Between 2023 and 2025, earnings per share increased by 68%, while tangible net asset value per share plus dividends rose by an average of 14% annually. Santander’s share price increased over 250% in that period.
The bank is focusing on data and AI as part of its transformation programme, with expectations this will generate over €1bn in annual business value by 2028 through cost efficiencies and additional revenue.
Five global business lines such as Retail, Openbank, Corporate & Investment Banking, Wealth, and Payments will remain central to operational plans.
From results for 2027 onwards, Santander plans around 35% of profits to be paid as cash dividends and about 15% allocated for buybacks.
The board will propose Deborah Vieitas as a new independent director at the next shareholders’ meeting, pending regulatory approval.
She currently serves as non-executive chair at Banco Santander Brasil and would replace Homaira Akbari following her decision not to stand for re-election.
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