MADRID, March 27 (Reuters) - Spain's Santander said on Friday it was on track to meet its 2026 full-year profitability and revenue targets after it continued to gain customers in the first quarter. In
Santander reaffirms targets as its divisified business helps to cushion against economic uncertainty
Santander's Financial Outlook and Strategic Initiatives
By Jesús Aguado
MADRID, March 27 (Reuters) - Santander on Friday reaffirmed its 2026–2028 financial targets despite global economic uncertainty, citing its diversified business model after a strong start to 2026.
Performance and Financial Targets
The euro zone's largest bank by market value said it was also on track to meet its 2026 goals as positive trends from previous years continued into the first quarter, supported by client growth and rising revenues. Costs were expected to fall year on year in constant euros.
Risk Mitigation through Diversification
Executive Chair Ana Botin said in a statement as part of a speech she is expected to deliver at the bank's shareholder meeting on Friday that its balanced presence across different countries would "significantly" mitigate risk by reducing volatility in a global environment that was becoming increasingly complex.
Global Economic Challenges
"The world now faces the scenario of higher inflation and lower growth, threats that become more likely with each passing day. Their severity will depend on the duration of the conflict (in the Gulf) and its impact on global energy supply," Botin said in the statement.
Profit Targets and Growth Drivers
In February, Santander said it was targeting higher profits for 2026 compared with a record 14.1 billion euros ($16.24 billion) in 2025. Last month, Santander raised its profit target by more than 40% to above 20 billion euros in 2028 compared with 2025, supported by benefits from acquisitions of U.S. lender Webster and Britain's TSB.
Efficiency Gains and IT Transformation
Santander said it had improved efficiency gains by around 250 basis points in the first quarter, benefiting from its IT transformation.
At 0850 GMT, shares in Santander fell 1%.
Shareholder Meeting and Strategic Investments
At the meeting, Santander's shareholders will vote on the issuance of more than 334.8 million new shares to help finance the Webster deal, which is 65% funded in cash and 35% in new shares.
Webster Acquisition Details
Based on Santander's closing share price on Thursday, Webster is valued at around $11.6 billion, of which $3.63 billion would be paid in new shares.
Role of Artificial Intelligence
Botin is also expected to say that artificial intelligence will help to generate more than 1 billion euros in savings and revenues by 2028.
($1 = 0.8680 euros)
(Reporting by Jesús Aguado; editing by Emma Pinedo and Jane Merriman)
