Direct answer
Banco Santander reported a record underlying profit of 11.2 billion euros for the first nine months of 2026, up 16 percent from a year earlier. The Spanish bank said it added 17 million customers over the past 12 months, taking its total to 189 million. The results were published on October 28, 2026, in Santander’s own results release.
What happened
Underlying profit is a measure that strips out one-off items, so it is not the same as the headline profit figure. Santander also reported attributable profit of 12.41 billion euros for the nine months, up 20 percent. That headline figure includes a 1.9 billion euro capital gain from selling part of its Polish business, partly offset by 666 million euros of charges linked to buying TSB and Webster. Total revenue rose 8 percent to 46.81 billion euros. In the third quarter alone, underlying profit was 3.8 billion euros, up 19 percent, while attributable profit was 3.43 billion euros, down 2 percent from a year earlier. Retail and commercial banking, the bank’s largest business, raised its underlying profit by 12 percent to 6,445 million euros. Loans and deposits each grew by 16 percent, although growth was much smaller once the newly acquired TSB and Webster businesses were excluded. Santander said the two acquisitions added only about 1.3 percentage points to year on year trends across its main profit lines. Santander also reaffirmed its 2026 targets, including mid-single-digit revenue growth, lower costs in constant euros, and profit above the 14.1 billion euros reported in 2025.
Why it matters for beginners
A bank makes money mainly from the gap between what it earns on loans and what it pays on deposits, plus fees for services. When more customers borrow, save, and use payment services, that income can rise, even if costs also rise. Underlying profit matters because it shows the trend in the everyday business, without one-off gains or deal costs distorting the picture. That is why Santander’s underlying profit and its headline profit move in different directions for the quarter, even though both describe the same bank. For beginners, the wider lesson is that a large bank’s result is a useful health check on households and businesses. Strong customer growth and higher lending can point to steady demand, while rising provisions or costs can signal pressure. One quarter alone does not prove a trend, which is why the nine-month figure gives a clearer view than a single quarter. Related reading: US economic growth in Q3 2026.
What to watch next
Watch Santander’s full-year results to see whether it beats its target of profit above 14.1 billion euros for 2026. Also watch whether customer growth stays strong after the TSB and Webster deals are fully included, and whether loan losses rise if economic growth slows. Santander said it expects underlying profit of more than 15 billion euros including acquisitions, so the gap between that figure and the target excluding acquisitions is worth checking when the full-year numbers arrive.
FAQ
What is underlying profit?
Underlying profit removes one-off items, such as a gain from selling a business or costs from integrating an acquisition. It is meant to show how the core business performed, but it is still a company adjusted figure, not a standard accounting measure.
Why is the headline profit higher than underlying profit here?
Because the headline profit includes a 1.9 billion euro gain from the Polish business sale, partly offset by 666 million euros of acquisition charges. Once those items are removed, the nine-month profit is 11.2 billion euros, rather than 12.41 billion euros.
Does a record bank profit mean banking is risk free?
No. A profit report looks backward at a period that has already ended. Banks still face risks from bad loans, higher funding costs, and weaker demand, and future results can fall even after a record period.