Banco Santander (NYSE:SAN) Posts Earnings Results, Misses Expectations By $0.01 EPS

Key Points

• Mixed quarter: EPS missed by $0.01 ($0.27 vs. $0.28) while revenue slightly beat, and reported record Q1 profit of €3.6 billion was boosted by a ~€1.9 billion one‑off capital gain, raising questions about recurring earnings.
• Strong commercial and capital position: Santander added +8 million customers YoY, Openbank gathered €11 billion of U.S. deposits and Payments revenue rose ~20%, with CET1 at a record 14.4% and €7 billion returned via buybacks, although planned TSB/Webster deals are expected to consume ~210 bps of CET1.
• Near‑term risks and shareholder payout: The group booked a €210 million motor‑finance provision in the U.K. and elevated Argentina LLPs that increase volatility, and it declared a dividend of $0.1473 per share (ex‑dividend May 4).

Banco Santander (NYSE:SAN - Get Free Report) announced its quarterly earnings data on Wednesday. The bank reported $0.27 earnings per share for the quarter, missing analysts' consensus estimates of $0.28 by ($0.01), FiscalAI reports. The business had revenue of $17.53 billion during the quarter, compared to the consensus estimate of $17.48 billion. Banco Santander had a return on equity of 12.14% and a net margin of 18.85%.

Here are the key takeaways from Banco Santander's conference call:

• Record Q1 profit of EUR 3.6 billion (up 12% YoY) with revenue +6% (NII +5%, fees +7%), underlying ROTCE at 15.2% and efficiency improving ~2 percentage points, which management attributes to its One Transformation program.
• Strong commercial momentum — +8 million customers YoY toward the 210m 2028 target, Openbank has gathered EUR 11 billion in U.S. deposits (c. EUR 150m annual funding cost savings) and Payments (Getnet) revenue rose ~20%, supporting deposit-led funding and fee growth.
• Credit and provisioning pressure in specific areas — the group booked a EUR 210 million motor finance provision in the U.K. and Argentina drove elevated LLPs (Argentina cost-of-risk spiked, management expects normalization toward ~7%), weighing on near-term volatility.
• Very strong capital metrics with CET1 at a record 14.4% and EUR 7 billion returned via buybacks, but management warns the planned TSB and Webster deals will consume ~210 bps of CET1 phased across Q2–Q3.

Banco Santander Trading Down 0.8%

Banco Santander stock traded down $0.09 during mid-day trading on Wednesday, reaching $11.98. 7,034,807 shares of the company traded hands, compared to its average volume of 12,558,179. The company has a debt-to-equity ratio of 3.15, a current ratio of 0.33 and a quick ratio of 0.33. The firm's 50 day moving average price is $11.73 and its 200 day moving average price is $11.45. The firm has a market capitalization of $175.92 billion, a price-to-earnings ratio of 11.86, a P/E/G ratio of 0.73 and a beta of 0.76. Banco Santander has a 52-week low of $6.82 and a 52-week high of $13.24.

Banco Santander Dividend Announcement

The business also recently disclosed a dividend, which will be paid on Friday, May 8th. Shareholders of record on Monday, May 4th will be given a dividend of $0.1473 per share. This represents a yield of 254.0%. The ex-dividend date of this dividend is Monday, May 4th. Banco Santander's payout ratio is presently 20.79%.

Trending Headlines about Banco Santander

Here are the key news stories impacting Banco Santander this week:

• Positive Sentiment: Santander reported a record Q1 profit and reaffirmed its targets, highlighting strong top‑line momentum and management confidence in execution. Santander reports record Q1 profit, reaffirms targets
• Positive Sentiment: The bank is actively gathering U.S. deposits ahead of a pending deal close, strengthening funding and liquidity while awaiting transaction completion. Santander pulls in U.S. deposits while waiting for deal to close
• Neutral Sentiment: Q1 results were mixed: revenue slightly beat estimates ($17.53B vs $17.48B) but EPS missed by $0.01 ($0.27 vs $0.28). Investors will parse quality of the quarter vs forward guidance. Quarterly results and materials
• Neutral Sentiment: Net profit jumped ~60% year‑on‑year, but much of the increase was driven by a one‑off ~€1.9B capital gain from the sale of its Polish unit; this raises questions about recurring earnings power. Santander's Q1 net profit up 60% vs same period 2025
• Neutral Sentiment: New preferred notes/bond issuance is on the market (S.A.DL-Preferred Notes 24(31)); fixed‑income activity is relevant for capital & funding profiles but is not an immediate equity catalyst. Preferred notes listing
• Negative Sentiment: Santander UK booked additional costs tied to the motor‑finance scandal and expects customer payouts (reports reference ~£829 payouts), which will weigh on UK profitability and add near‑term provisions. Santander UK takes profit hit from further costs of motor finance scandal
• Negative Sentiment: Analysts are flagging deal risk and shifting expectations around the planned U.S. transaction (Webster Financial/related coverage), increasing uncertainty about deal execution and integration costs. How The Webster Financial (WBS) Story Is Shifting As Santander Deal Risks Meet Analyst Caution

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Binnacle Investments Inc increased its position in Banco Santander by 96.2% during the 3rd quarter. Binnacle Investments Inc now owns 3,227 shares of the bank's stock valued at $34,000 after purchasing an additional 1,582 shares during the period. Tower Research Capital LLC TRC increased its position in Banco Santander by 111.2% during the 2nd quarter. Tower Research Capital LLC TRC now owns 6,479 shares of the bank's stock valued at $54,000 after purchasing an additional 3,411 shares during the period. Larson Financial Group LLC increased its position in Banco Santander by 73.9% during the 3rd quarter. Larson Financial Group LLC now owns 6,501 shares of the bank's stock valued at $68,000 after purchasing an additional 2,762 shares during the period. Jones Financial Companies Lllp increased its position in Banco Santander by 271.2% during the 1st quarter. Jones Financial Companies Lllp now owns 10,276 shares of the bank's stock valued at $69,000 after purchasing an additional 7,508 shares during the period. Finally, Brown Brothers Harriman & Co. increased its position in Banco Santander by 673.3% during the 4th quarter. Brown Brothers Harriman & Co. now owns 5,970 shares of the bank's stock valued at $70,000 after purchasing an additional 5,198 shares during the period. 9.19% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

SAN has been the subject of a number of recent research reports. Wall Street Zen upgraded shares of Banco Santander from a "hold" rating to a "buy" rating in a report on Sunday. UBS Group reiterated a "buy" rating on shares of Banco Santander in a report on Monday, February 16th. Kepler Capital Markets upgraded shares of Banco Santander from a "hold" rating to a "buy" rating in a report on Tuesday, January 13th. Barclays lowered shares of Banco Santander from a "strong-buy" rating to a "hold" rating in a report on Tuesday, January 6th. Finally, Morgan Stanley upgraded shares of Banco Santander from an "equal weight" rating to an "overweight" rating in a report on Monday, March 23rd. One analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy".

Banco Santander Company Profile

Banco Santander, SA NYSE: SAN is a Spanish multinational banking group headquartered in Santander, Spain. Founded in 1857, the bank has grown from a regional institution into one of Europe's largest banking groups, operating a diversified financial services platform that serves retail, small and medium-sized enterprises, and large corporate clients. Santander is publicly listed in Spain and maintains American Depositary Receipts on the New York Stock Exchange under the ticker SAN.

The group's core activities include retail and commercial banking—offering deposit accounts, payment services, mortgages, personal and auto loans, and small business financing—alongside corporate and investment banking services for larger institutional clients.

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