FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the month of July, 2026
Commission File Number: 001-12518
 
 
Banco Santander, S.A.
(Exact name of registrant as specified in its charter)
 
 
Ciudad Grupo Santander
28660 Boadilla del Monte (Madrid) Spain
(Address of principal executive office)
 
 
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F  ☒            Form 40-F  ☐







BANCO SANTANDER, S.A.
________________________

TABLE OF CONTENTS










































Item 1. January - June 2026 Half yearly financial report




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January - June2026

Index
Interim consolidated directors' report
BUSINESS MODEL
The Santander share
CORPORATE GOVERNANCE
APPENDIX
Interim condensed consolidated financial statements
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This report was approved by the board of directors on 21 July 2026, following a favourable report from the audit committee. Important information regarding this report can be found on pages 87, 88 and 89.






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Significant events in the period
Completion of the TSB acquisition
•On 30 April 2026, Santander completed the acquisition of TSB Banking Group plc (TSB), the UK subsidiary of Banco de Sabadell, S.A. (Sabadell), having received the required regulatory approvals and fulfilled the conditions required for closing, for a cash consideration of approximately GBP 2.9 billion (approximately EUR 3.3 billion), with a -55 bp impact on the June 2026 CET1 capital ratio.
•TSB is fully incorporated within the Retail & Commercial Banking global business. Therefore, from 1 May 2026, the balance sheet and results of Grupo Santander, Retail & Commercial Banking (within Retail UK) and the UK secondary segment include TSB. As a result, unless otherwise stated, all metrics for Q2 2026 and H1 2026 included in this report incorporate TSB’s business from May 2026. However, we provide some underlying income statements and balance sheet metrics excluding TSB to facilitate comparisons.
•As of 30 June 2026, TSB had approximately EUR 53 billion of total assets, a gross loan book of EUR 42 billion, more than 90% of which is residential mortgage lending, and around EUR 42 billion of customer funds, fully comprising customer deposits, of which over 80% are demand deposits. TSB has approximately 4,700 employees, around 180 branches and over 4 million customers in the UK.
Changes to Group Reporting in 2026
•On 10 February 2026, the Group announced a series of changes to its reporting structure, effective from Q1 2026. They do not change the Group’s reported profit attributable to the parent nor do they affect the Group's targets announced to the market in the Q4 2025 results presentation.
•These changes, which affect the income statements and certain management metrics, have been applied to the information reported from Q1 2026 onwards, as well as to prior periods presented in this report to facilitate comparisons. These changes do not affect the Group’s consolidated balance sheet. For further information on these changes, see the 'Significant events in the period' section of the Q1 2026 Quarterly financial report.
•In addition, other minor changes affecting the primary and secondary segments were disclosed, which are detailed in the 'Financial information by segment' section of this report.
Announcement of the Webster acquisition
•On 3 February 2026, Santander announced that it had reached an agreement to acquire 100% of Webster Financial Corporation’s (Webster) share capital, a US retail and commercial bank, highly complementary to the activities and services Santander provides in the US. The transaction is subject to customary closing conditions, including the corresponding regulatory approvals. In May 2026, Webster's shareholders approved the transaction. Once completed, we expect that this acquisition, valued at USD 12.2 billion (approximately EUR 10.3 billion), will enable us to improve Santander's positioning and market share in the country.
Completion of the Poland disposal
•On 9 January 2026, Banco Santander and Erste Group Bank AG (Erste) announced the completion of the sale of Santander Bank Polska (Santander Poland), which had been disclosed in May 2025, after obtaining all required regulatory approvals and fulfilling of the conditions for closing. The abovementioned transaction will hereinafter be referred to as the 'Poland disposal'.
•Erste acquired approximately 49% of the share capital of Santander Poland and the 50% of the asset management company (TFI) which was not integrated within Santander Poland, for a total cash consideration of approximately EUR 7 billion. The all-cash transaction at 584 zlotys per share values the bank at 2.2 times Q1 2025 tangible book value per share and represents a premium of 7.5% versus Santander Poland's closing price on 2 May 2025, excluding the dividend paid in May 2025.
•The transaction generated a net capital gain of EUR 1,895 million for Santander, increasing its CET1 ratio by 95 basis points, equivalent to around EUR 6 billion. The financial impacts on both results and capital from this transaction were recorded in Q1 2026. For further information, see the 'Alternative performance measures' section in this report.
January - June 2026
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Key consolidated data
BALANCE SHEET (EUR million) 1
Jun-26Mar-26%Jun-26Jun-25%Dec-25
Total assets1,954,465 1,856,625 5.3 1,954,465 1,815,888 7.6 1,867,515 
Loans and advances to customers1,149,162 1,070,809 7.3 1,149,162 1,010,727 13.7 1,037,288 
Customer deposits1,133,762 1,059,261 7.0 1,133,762 1,008,229 12.5 1,041,200 
Total funds1,489,431 1,394,819 6.8 1,489,431 1,307,359 13.9 1,363,160 
Total equity115,898 112,548 3.0 115,898 108,985 6.3 112,748 
Note: total funds includes customer deposits, mutual funds, pension funds and managed portfolios.
INCOME STATEMENT (EUR million) 2
Q2'26Q1'26%H1'26H1'25%2025
Net interest income11,692 11,019 6.1 22,711 21,211 7.1 42,348 
Total income15,682 15,140 3.6 30,822 28,978 6.4 58,311 
Net operating income9,277 9,010 3.0 18,287 16,580 10.3 33,532 
Profit before tax4,932 5,029 (1.9)9,961 9,104 9.4 18,681 
Profit attributable to the parent3,518 5,455 (35.5)8,973 6,833 31.3 14,101 
Note: net operating income is defined as total income minus operating expenses.
EPS AND PROFITABILITY (%) 2 3
Q2'26Q1'26%H1'26H1'25%2025
EPS (euros)0.23 0.36 (35.5)0.60 0.43 37.6 0.91 
RoE13.7 15.1 15.1 13.6 13.9 
RoTE15.8 17.3 17.4 16.0 16.3 
RoA0.82 0.92 0.91 0.81 0.84 
RoRWA2.56 2.80 2.81 2.35 2.44 
UNDERLYING INCOME STATEMENT
(EUR million) 4 5
Q2'26Q1'26%H1'26H1'25%2025
Net interest income11,692 11,019 6.1 22,711 21,237 6.9 42,401 
Total income15,707 15,140 3.7 30,847 28,966 6.5 58,308 
Net operating income8,980 8,656 3.7 17,636 15,715 12.2 31,898 
Profit before tax5,318 5,029 5.7 10,347 9,338 10.8 18,936 
Underlying profit attributable to the parent3,768 3,560 5.8 7,328 6,377 14.9 13,152 
Changes in constant euros:
Q2'26 / Q1'26: NII: +4.8%; Total income: +2.5%; Net operating income: +2.4%; Profit before tax: +4.7%; Underlying attributable profit: +4.8%.
H1'26 / H1'25: NII: +6.3%; Total income: +5.8%; Net operating income: +11.2%; Profit before tax: +10.0%; Underlying attributable profit: +14.3%.
UNDERLYING EPS, PROFITABILITY AND EFFICIENCY (%) 3 4 5
Q2'26Q1'26%H1'26H1'25%2025
Underlying EPS (euros)0.25 0.23 7.6 0.48 0.40 19.9 0.84 
Underlying RoE13.9 13.3 13.6 12.7 13.0 
Underlying RoTE16.0 15.2 15.6 14.9 15.2 
Underlying RoA0.84 0.82 0.83 0.77 0.79 
Underlying RoRWA2.60 2.49 2.55 2.23 2.31 
Efficiency ratio42.8 42.8 42.8 45.7 45.3 
SOLVENCY (%)Jun-26Mar-26Jun-26Jun-25Dec-25
Phased-in CET1 ratio14.0 14.4 14.0 13.0 13.5 
Phased-in total capital ratio18.8 18.9 18.8 17.2 17.8 
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January - June 2026
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CREDIT QUALITY (%) 3
Jun-26Mar-26Jun-26Jun-25Dec-25
Cost of risk 5 6
1.15 1.14 1.15 1.13 1.14 
NPL ratio2.93 3.00 2.93 2.90 2.91 
NPL coverage ratio64 66 64 67 66 
MARKET CAPITALIZATION AND SHARESJun-26Mar-26%Jun-26Jun-25%Dec-25
Shares (millions)14,689 14,689 0.0 14,689 14,885 (1.3)14,689 
Number of shareholders3,508,619 3,503,270 0.2 3,508,619 3,508,261 0.03,518,729 
Share price (euros)12.084 9.490 27.3 12.084 7.027 72.0 10.070 
Market capitalization (EUR million)177,506 139,402 27.3 177,506 104,599 69.7 147,921 
Tangible book value per share (euros)6.32 6.13 6.32 5.50 5.76 
Price / Tangible book value per share (X)1.91 1.55 1.91 1.28 1.75 
CUSTOMERS (thousands)Jun-26Mar-26%Jun-26Jun-25%Dec-25
Total customers182,488 176,312 3.5 182,488 170,412 7.1174,197 
Active customers105,684 102,247 3.4 105,684 100,025 5.7 101,651 
Digital customers61,998 60,435 2.6 61,998 57,241 8.359,040 
Note: customer data in 2025 exclude Poland. Including Poland: in December 2025, total customers 180,221; active customers 106,410; digital customers 62,982. In June 2025, total customers 176,431; active customers 104,733; digital customers 61,100.
OTHER DATA Jun-26Mar-26%Jun-26Jun-25%Dec-25
Number of employees185,279 185,243 0.0 185,279 193,678 (4.3)187,539 
Number of branches6,496 6,589 (1.4)6,496 7,322 (11.3)6,765 
Note: employees and branches data in 2025 exclude Poland. Including Poland: in December 2025, number of employees 198,403; number of branches 7,124. In June 2025, number of employees 204,330; number of branches 7,683.
Note: for Argentina and any grouping which includes it, the variations in constant euros have been calculated considering the Argentine peso exchange rate on the last working day for each of the periods presented. For further information, see the 'Alternative performance measures' section in the appendix to this report.
Certain figures contained in this report, have been subject to rounding to enhance their presentation. Accordingly, in certain instances, the sum of the numbers in a column or a row in tables contained in this report may not conform exactly to the total figure given for that column or row.
1.In the Group's consolidated balance sheet, balances as at 30 June 2026 include TSB, affecting comparisons with prior periods. The assets associated with the Poland disposal were classified under the 'non-current assets held for sale' line item and the related liabilities under 'liabilities associated with non-current assets held for sale' from the announcement of disposal until its completion.
2.In the statutory income statement, results associated with the business subject to the Poland disposal in all periods in 2025 and the resulting capital gain in Q1 2026 are reported under a single line item in the consolidated income statement — 'profit/(loss) after tax from discontinued operations'. Consequently, the results from the Poland disposal perimeter are excluded line by line from the breakdown of continuing operations, though they are included in the profit attributable to the parent and, therefore, in the metrics calculated based on said profit.
3.For further information, see the 'Alternative performance measures' section in this report.
4.In the underlying income statement, results associated with the business subject to the Poland disposal in all periods in 2025 and the resulting capital gain in Q1 2026 are recorded in 'non-recurring items'. This line item also includes restructuring costs associated with M&A transactions, such as those recorded in Q2 2026 relating to the TSB acquisition. These items grouped under ‘non-recurring items’ are excluded from underlying profit and underlying metrics, and explain the difference between underlying attributable profit and profit attributable to the parent.
5.In addition to financial information prepared in accordance with International Financial Reporting Standards (IFRS) and derived from our consolidated financial statements, this report contains certain financial measures that constitute alternative performance measures (APMs) as defined in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority (ESMA) on 5 October 2015, and other non-IFRS financial measures, including the figures related to “underlying” results, which do not include factors that are outside the ordinary course of our business, or have been reclassified within the underlying income statement. Further details are provided in the 'Alternative performance measures' section in the appendix to this report. For further details on the APMs and non-IFRS measures used, including their definition or a reconciliation between any applicable management indicators and the financial data presented in the annual consolidated financial statements prepared under IFRS, please see our 2025 Annual financial report, published in the CNMV on 25 February 2026, our 20-F report for the year ending 31 December 2025 filed with the SEC in the United States on 25 February 2026, as updated by the Form 6-K filed with the SEC on 1 April 2026 in order to reflect our new reporting structure as well as the 'Alternative performance measures' section in this report.
6.Underlying allowances for loan-loss provisions over the last 12 months / Average loans and advances to customers and debt securities issued by non-financial institutions over the last 12 months.
January - June 2026
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Our business model
CUSTOMER FOCUSBuilding a digital bank with branches
→ We continue to build a digital bank with branches, with a multichannel proposition designed to meet all our customers' financial needs.
182 mn
106 mn
total customersactive customers
SCALEGlobal and in-market scale
→ Our global and in-market scale helps us to improve our local banks' profitability, adding value and network benefits.
→ Our activity is organized under five global businesses: Retail & Commercial Banking (Retail), Openbank, Corporate & Investment Banking (CIB), Wealth Management & Insurance (Wealth) and Payment Solutions (Payments).
→ Our five global businesses support value creation based on the profitable growth and the operational leverage that ONE Santander provides.
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DIVERSIFICATIONBusiness, geographical and balance sheet
→ Well-balanced diversification between businesses and markets with a solid and simple balance sheet that gives us recurrent net operating income with low volatility and more predictable results.
Our corporate culture
The Santander Way remains unchanged to continue to deliver for all our stakeholders
Our purpose
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To help people and businesses prosper
Our aim
To be the best open financial services platform, by acting responsibly and earning the lasting loyalty of our people, customers, shareholders and communities
Our how
Everything we do should be Simple, Personal and Fair
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January - June 2026
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•General background
Group financial information
General background
Grupo Santander's operating environment in Q2 2026 was characterized by some volatility, particularly due to geopolitical tensions in the Middle East. However, at the end of the quarter, economic growth indicators were solid across our footprint and unemployment rates remained relatively low in general. Uncertainty regarding the global economic outlook persists and we therefore expect a moderate economic slowdown compared to our previous estimates, as well as a pickup in global inflation, driven by a negative supply shock resulting from the conflict in the Middle East.

Country
GDP Change1
Economic performance
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Eurozone
+0.3%Economic growth slowed and inflation increased following the conflict with Iran, due to higher energy prices, though second-round effects remained limited. In June, the ECB raised its deposit facility rate to 2.25%.
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Spain
+2.7%
Indicators in Q2 2026 point to solid growth, albeit more moderate than in the previous quarter. Industrial activity remained dynamic, partly driven by front-loading of orders, while consumer confidence deteriorated further. Employment accelerated in Q2 2026 and unemployment fell to 2.2 million. Inflation stabilized at 3.2% in June, though services prices are accelerating. So far, there are no clear signs of second-round effects.
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UK
+0.9%The economy started 2026 more strongly than expected, but more recent data point to a clear loss of momentum. The labour market continued to weaken, though the pace of rebalancing could be stabilizing: the unemployment rate fell to 4.9%, partly due to higher inactivity, while private sector wage growth moderated further. Headline inflation fell to 2.8% in May. Following the 25 bp cut in January, the Bank of England held interest rates at 3.75% in June.
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Portugal
+2.3%Portugal began Q2 2026 with moderate growth after stagnating in Q1 2026. The rebound in inflation to 3.3% in May and weaker confidence could weigh on consumption, though the solid labour market (with the unemployment rate at 5.5% in May), tourism and sound public finances should continue to support activity. The main downside risk stems from weakness in external demand and goods exports. S&P, Fitch and DBRS revised the sovereign debt outlooks from stable to positive in 2026.
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US
+2.7%Solid economic growth in Q2 2026 was driven by the sharp increase in investment, despite uncertainty stemming from the conflict in the Middle East. The unemployment rate remained stable, with employment growth in line with labour force growth. Inflation remained elevated in June (3.5%). The Federal Reserve held the interest rate range at 3.5%–3.75% in June and noted concerns about inflation having been above the 2% target for more than five years.
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Mexico
+0.2%After a weak Q1 2026, the economy showed signs of recovery at the beginning of Q2 2026, which we expect to strengthen in the coming months, albeit with modest growth. Exports continued to grow solidly and the labour market remained resilient, with a very low unemployment rate (2.7% in May). Inflation moderated to 3.4% in June, mainly driven by lower food prices. The central bank cut interest rates by 25 bps again in May, bringing them to 6.5%, and indicated it is likely to hold rates going forward.
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Brazil
+1.8%At the beginning of Q2 2026, the economy consolidated the recovery that began in the previous two quarters, supported by the reactivation of industrial activity and the resilience of services. The labour market remained solid, with the unemployment rate close to historical lows (5.6% in May). Inflation rebounded to 4.6% in June, driven by higher fuel, transport and food prices, and services prices remained elevated. The central bank continued its gradual easing cycle, lowering the policy rate by 25 bps in April and again in June to 14.25%, and remained cautious about the outlook, closely monitoring inflation trends and expectations.
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Chile-0.5%Following the decline in Q1 2026, the economy remained weak in Q2 2026, driven by domestic demand, though there are signs of improvement in mining. Inflation picked up to 4.3% in June, mainly driven by energy and food prices, though expectations remain anchored at the 3% target from 2027 onwards. In Q2 2026, the central bank held rates at 4.5%, adopting a cautious tone given the conflict in the Middle East, though it acknowledged that inflation risks are beginning to balance out.
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Argentina+2.3%During 2026, the economy has shown mixed signals, with weaker domestic demand, while exports remained solid. In Q2 2026, inflation moderated following the uptick at the beginning of the year, with a monthly average inflation of 2.2% in Q2 2026, compared to 3.1% in Q1 2026. The central bank maintained a restrictive stance, though with some signs of easing at the margin. Fiscal policy remained contractionary, meeting surplus targets and contributing to Fitch's and S&P’s recent sovereign rating upgrades from CCC+ to B-.
1.Year-on-year changes for Q1 2026.
January - June 2026
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Index
•Highlights of the period
Highlights of the period: main figures
ATTRIBUTABLE PROFIT
Q2'26
EUR 3,518 mn
-36% in euros /Q1'26
H1'26
EUR 8,973 mn
+31% in euros /H1'25
UNDERLYING ATT. PROFIT
Q2'26
3,768 mill. euros
+6% in euros/ Q1'26
+5% in constant euros
H1'26
7,328 mill. euros
+15% in euros/ H1'25
+14% in constant euros
RoTE
RoTE (underlying)
17.4%15.6%
+1.4 pp+0.7 pp
/H1'25
VOLUMES AND REVENUE
Loans and advances to customersCustomer
funds
+9%+11%
Net interest incomeNet fee
income
+6%+7%
Note: YoY changes in constant euros and Argentina in current euros.
EFFICIENCY
42.8%
-3 pp /H1'25
COST OF RISK
1.15%
+2 bps /Jun-25
CET1 RATIO1
14.0%
-0.4 pp /Mar-26
uIn Q2 2026, profit attributable to the parent was EUR 3,518 million, which included TSB results from May 2026. The quarter-on-quarter comparison was significantly impacted by the EUR 1,895 million capital gain from the completion of the Poland disposal in Q1 2026 and by EUR 250 million of restructuring charges associated with the TSB integration in Q2 2026, resulting in a 36% decline.
Excluding these two non-recurring impacts, underlying attributable profit was EUR 3,768 million, achieving another quarterly record, up 6% compared to Q1 2026. In constant euros, profit increased 5% quarter-on-quarter, supported by strong increases in net interest income and net fee income. Additionally, the quarter-on-quarter comparison was favoured by the incorporation of TSB and the provisions for potential complaints related to motor finance dealer commissions in the UK recorded in Q1 2026.
uYear-on-year, profit attributable to the parent in H1 2026 increased 31% to EUR 8,973 million, favoured by the aforementioned capital gain. In underlying terms, profit rose 15% year-on-year to EUR 7,328 million. In constant euros, underlying attributable profit rose 14%, driven by good performances in revenue and costs, with the cost of risk practically stable, and a small positive impact from the incorporation of TSB.
uUnderlying attributable profit grew strongly year-on-year across most of our global businesses, supported by good revenue performances and cost management.
uThese strong results put us in a good position to meet our 2026 targets.
uProfitability improved significantly year-on-year, achieving a RoTE of 17.4% in H1 2026 and the underlying RoTE increased to 15.6%, advancing towards our goal of achieving a RoTE above 20% in 2028.
uWe continued to record sustained earnings per share growth, increasing to EUR 60 cents in H1 2026, favoured by the capital gain from the Poland disposal. Underlying earnings per share improved by 20% year-on-year to EUR 48 cents, boosted by positive profit trends and the share buybacks executed over the last 12 months.
uIn terms of business volumes, both loans and advances to customers and customer funds grew at a solid pace, supported by our focus on active and disciplined capital management and profitable growth. They were also favoured by the incorporation of TSB.
Gross loans and advances to customers (excluding reverse repos) rose 9% year-on-year in constant euros. Excluding TSB, they increased 5% in constant euros, boosted by widespread growth across businesses.
Customer funds (customer deposits excluding repos plus mutual funds) grew 11% year-on-year in constant euros. Excluding TSB, they rose 7% in constant euros, increasing across all global businesses. Customer deposits excluding TSB rose 5% in constant euros, mainly driven by time deposits, and mutual funds increased double digits.
uIn a somewhat volatile environment, total income grew 6% year-on-year. In constant euros, it also rose 6% (+5% excluding TSB, in line with our 2026 target), underpinned by solid performances in net interest income (+6%), driven by higher volumes and our active balance sheet management, and net fee income (+7%), boosted by higher activity and transactionality.
uTotal costs were flat year-on-year in euros. In constant euros, they decreased 1%, -2% excluding TSB, in line with our 2026 target. These solid performances in revenue and costs continued to reflect the progress in our ONE Transformation strategy. As a result, the efficiency ratio improved year-on-year to 42.8%, supported by all businesses.
uCredit quality remained robust, supported by our good risk management and low unemployment levels across our footprint. The Group's cost of risk was virtually unchanged year-on-year at 1.15%, even after the impact from a weaker performance in Argentina in the year, reflecting sector-wide trends in the country. In Retail and Openbank, which accounted for more than 90% of the Group's net loan-loss provisions, cost of risk was 1.19% and 2.09%, respectively.
u The NPL ratio remained at low levels (2.93%), broadly in line with June 2025 (+3 bps year-on-year). The NPL coverage ratio stood at 64%. Total loan-loss reserves ended the quarter at EUR 24,207 million.
uThe CET1 ratio ended June 2026 at 14.0% after recording a -55 bp impact from the closing of the TSB acquisition. Excluding this impact, the CET1 ratio rose 0.2 pp in the quarter, with net organic generation (+27 bps), from +61 bps from attributable profit, -33 bps from capital distributions2 (in line with our 50% payout target) and -1 bp from net RWA growth. Taking into account the expected impact from the Webster acquisition, which is still subject to completion, we remain on track to meet our aim to end the year with a CET1 ratio in the range of 12.8-13%, at the top end of our 12-13% operating range.

Note: in this section, unless indicated otherwise, results are presented on an underlying basis and management metrics exclude Poland in all periods of 2025. For further information, see the 'Significant events in the period' and 'Alternative performance measures' sections in this report.
1.CET1 ratio on a phased-in basis, calculated in accordance with the transitory treatment of the CRR.
2.Capital distribution includes deduction for the accrual of ordinary shareholder remuneration and AT1 costs. For further information on our shareholder remuneration policy, see the 'Santander share' section in this report.
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January - June 2026
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Index
•Highlights of the period
Think Value
ORDINARY SHAREHOLDER REMUNERATION*
EUR million
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+14%higher than 2024 total cash dividend
*Remuneration based on the full-year results of each period
TNAVps + CASH DPS
n Cash DPS: EUR 24.00 cents
+19%
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/Jun-25
uOn 27 March 2026, the general shareholders' meeting approved a final cash dividend of EUR 12.50 cents per share against H2 2025 results, which was paid in May 2026. Considering the interim cash dividend of EUR 11.50 cents per share paid in November 2025, the total cash dividend per share paid against 2025 results was EUR 24.00 cents, 14% higher than that paid against 2024 results.
uOn 3 February 2026, the board of directors approved the Second 2025 Buyback Programme worth up to EUR 5,030 million. The programme started on 4 February 2026.
This programme includes EUR 1,830 million as part of our ordinary shareholder remuneration policy charged against H2 2025 results and the remaining amount corresponds to an extraordinary buyback of EUR 3,200 million, equivalent to approximately 50% of the CET1 capital generated following completion of the Poland disposal.
This programme puts us on track to achieve our goal of distributing at least EUR 10 billion through share buybacks charged against 2025 and 2026 results and against expected capital excess1. Considering the share buyback currently underway, we have already carried out approximately 80% of this goal.
uConsidering the cash dividends and the two share buybacks as part of our ordinary payout policy, total shareholder remuneration charged against 2025 results will be around EUR 7,030 million (approximately 50% of the Group's 2025 net reported profit, excluding non-cash, non-capital ratios impact items), split almost evenly between cash dividends and share buybacks. This is a 12% increase compared to the ordinary shareholder remuneration charged against 2024 results.
uAt the end of the quarter, TNAV per share was EUR 6.32. Including the cash dividends charged against 2025 results, TNAV per share increased 19% year-on-year.
Think Customer
CUSTOMER GROWTH
(vs. Jun-25)
Total customers:+12mn
Active customers:+6mn
uWe continued to make progress in the implementation of our global platforms, which represent a clear competitive advantage, as the capability to build platforms once and deploy them across multiple markets enables us to improve time-to-market, cost to serve and customer satisfaction.
uThese developments, alongside other initiatives focused on delivering the best experience to our customers and improving service quality, enable us to continue to attract more customers to the Group.
uAs a result, total customers increased 12 million year-on-year and active customers grew 6 million year-on-year, both also favoured by the incorporation of TSB.
Think Global
Contribution to Group revenue 2
Retail
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55%
Openbank
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21%
CIB
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15%
Wealth
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7%
Payments
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2%
H1 2026 data. Year-on-year changes in constant euros.
uIn Retail, underlying attributable profit grew 12% to EUR 4,124 million, boosted by solid performance in revenue and by a strong reduction in costs, reflecting our transformation efforts. It was also slightly favoured by the incorporation of TSB from May 2026.
uThe efficiency ratio improved to 40.5% and cost of risk stood at 1.19%. RoTE rose to 17.1%.
uIn Openbank, profit before tax increased 15% excluding the additional provisions in the UK, driven by solid performances in revenue and costs, which was not reflected in underlying attributable profit, which was also impacted by the end of tax benefits for electric vehicles in the US in 2025.
uThe efficiency ratio improved to 41.6% and cost of risk stood at 2.09%, with RoTE at 7.7%.
uIn CIB, underlying attributable profit increased 17% to EUR 1,742 million, due to higher revenue across all business lines, but especially due to a strong Q1 in Global Markets and a solid Q2 in Global Banking.
uThe efficiency ratio improved to 40.8% and RoTE to 20.3%.
uIn Wealth, underlying attributable profit rose 19% to EUR 1,083 million, boosted by solid activity, with double-digit growth in both net fee income and gains on financial transactions.
uThe efficiency ratio improved to 35.0% and RoTE was 56.9%.
uIn Payments, underlying attributable profit increased significantly to EUR 78 million, with revenue growing at a much faster pace than costs, boosted by higher activity.
uEBITDA margin reached 32.6% (+3.8 pp year-on-year).
1.As previously announced, Santander intends to allocate at least EUR 10 billion to shareholders through share buybacks charged against 2025 and 2026 results and against the expected capital excess. This share buyback target includes: i) buybacks that are part of the existing shareholder remuneration policy; and ii) additional buybacks following the publication of annual results to distribute year-end excesses of CET1 capital. The implementation of the shareholder remuneration policy and additional buybacks is subject to corporate and regulatory decisions and approvals.
2.As % of total operating areas, excluding the Corporate Centre.
January - June 2026
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9
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•Statutory income statement

Grupo Santander results
As a result of the announcement of the Poland disposal and in accordance with IFRS 5 requirements, in the statutory income statement, results associated with the business subject to the Poland disposal are reported under a single line item in the consolidated income statement — 'profit/(loss) after tax from discontinued operations' — for results corresponding to 2025. Additionally, in Q1 2026, the capital gain from the closing of the Poland disposal was recorded in the same 'profit/(loss) after tax from discontinued operations' line item. For further information, see the 'Alternative performance measures' section in this report. Furthermore, as mentioned in the 'Significant events in the period' section, Q2 2026 results include TSB from May 2026.
Grupo Santander. Summarized income statement
EUR million
ChangeChange
Q2'26Q1'26%H1'26H1'25%
Net interest income11,692 11,019 6.1 22,711 21,211 7.1 
Net fee income 1
3,494 3,357 4.1 6,851 6,342 8.0 
Gains or losses on financial assets and liabilities and exchange differences 2
81 651 (87.6)732 1,032 (29.1)
Dividend income534 90 493.3 624 471 32.5 
Share of results of entities accounted for using the equity method163 313 (47.9)476 332 43.4 
Other operating income/expenses (net) 3
(282)(290)(2.8)(572)(410)39.5 
Total income15,682 15,140 3.6 30,822 28,978 6.4 
Operating expenses(6,405)(6,130)4.5 (12,535)(12,398)1.1 
   Administrative expenses(5,566)(5,302)5.0 (10,868)(10,772)0.9 
       Staff costs (3,551)(3,379)5.1 (6,930)(6,736)2.9 
       Other general administrative expenses (2,015)(1,923)4.8 (3,938)(4,036)(2.4)
   Depreciation and amortization(839)(828)1.3 (1,667)(1,626)2.5 
Provisions or reversal of provisions(985)(765)28.8 (1,750)(1,012)72.9 
Impairment or reversal of impairment of financial assets not measured at fair value through profit or loss (net)(3,373)(3,198)5.5 (6,571)(6,524)0.7 
Impairment on other assets (net)(8)(22)(63.6)(30)(147)(79.6)
Gains or losses on non-financial assets and investments, net3 13 (76.9)16 (32)— 
Negative goodwill recognized in results5 — — 5 22 (77.3)
Gains or losses on non-current assets held for sale not classified as discontinued operations13 (9)— 4 217 (98.2)
Profit or loss before tax from continuing operations4,932 5,029 (1.9)9,961 9,104 9.4 
Tax expense or income from continuing operations(1,192)(1,250)(4.6)(2,442)(2,367)3.2 
Profit from the period from continuing operations3,740 3,779 (1.0)7,519 6,737 11.6 
Profit or loss after tax from discontinued operations— 1,895 (100.0)1,895 726 161.0 
Profit for the period3,740 5,674 (34.1)9,414 7,463 26.1 
Profit attributable to non-controlling interests(222)(219)1.4 (441)(630)(30.0)
Profit attributable to the parent3,518 5,455 (35.5)8,973 6,833 31.3 
EPS (euros)0.23 0.36 (35.5)0.60 0.43 37.6 
Diluted EPS (euros)0.23 0.36 (35.5)0.60 0.43 37.6 
Memorandum items:
   Average total assets1,923,462 1,847,367 4.1 1,885,415 1,835,466 2.7 
   Average stockholders' equity108,548 107,148 1.3 107,848 100,703 7.1 
Note: the summarized income statement groups some lines of the consolidated statutory income statement on page 85 as follows:
1.‘Commission income’ and ‘Commission expense’.
2.‘Gain or losses on financial assets and liabilities not measured at fair value through profit or loss, net’; ‘Gain or losses on financial assets and liabilities held for trading, net’; ‘Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss’; ‘Gain or losses on financial assets and liabilities measured at fair value through profit or loss, net’; ‘Gain or losses from hedge accounting, net’; and ‘Exchange differences, net’.
3.‘Other operating income’; ‘Other operating expenses’; ’Income from insurance and reinsurance contracts’; and ‘Expenses from insurance and reinsurance contracts’.
10
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•Statutory income statement
Statutory income statement
H1 2026 results compared to H1 2025
In H1 2026, profit attributable to the parent totalled EUR 8,973 million, including the capital gain of EUR 1,895 million from the closing of the Poland disposal in Q1 2026 and TSB results from May 2026. Thus, profit increased 31% year-on-year, also supported by the solid performances across businesses and good activity levels.
Total income
Total income in H1 2026 amounted to EUR 30,822 million, up 6% year-on-year. By line:
•Net interest income (NII) totalled EUR 22,711 million, 7% higher than in H1 2025, supported by solid performances in Retail, CIB and Openbank.
Net interest income
EUR million
chart-f8a70b62cbf34bbea76a.jpg
•Net fee income amounted to EUR 6,851 million, up 8% compared to H1 2025, underpinned by growth across all businesses. Of note were Retail, where we saw strong growth across most countries, and CIB and Wealth, both driven by solid commercial activity.
Net fee income
EUR million
chart-f4c53fd306594668ac9a.jpg
•Gains or losses on financial assets and liabilities and exchange differences reached EUR 732 million (EUR 1,032 million in H1 2025) driven by lower results in the Corporate Centre, due to a greater impact from foreign currency hedges, and in CIB, affected by lower volatility in Europe and Latin America.
•Dividend income was EUR 624 million (EUR 471 million in H1 2025), with the increase mainly driven by dividends from our stake in Poland recorded in the Corporate Centre.
•Income from companies accounted for by the equity method reached EUR 476 million, compared to EUR 332 million in H1 2025, supported by higher results from certain stakes recorded in the Corporate Centre.
•Other operating income recorded a loss of EUR 572 million, (compared to a EUR 410 million loss in H1 2025), affected by a more negative impact from the hyperinflation adjustment in Argentina and lower leasing revenue in Openbank US.
In summary, we had a solid performance in total income, reflecting the benefits of our diversification and global scale, our sound margin management and higher volumes.
Total income
EUR million
chart-8d91059250d04e1ca5ba.jpg
Operating expenses
Operating expenses in H1 2026 amounted to EUR 12,535 million, increasing slightly year-on-year (+1%), rising at a much slower pace than revenue.
Our cost management continued to focus on further structurally improving efficiency. We continued to drive our business model transformation plan, ONE Transformation, which, together with the rollout of our global platforms, the use of AI and network effects across our footprint, is resulting in greater operational leverage and better commercial dynamics.
Operating expenses
EUR million
chart-798f9158cc694ae9a97a.jpg
Provisions or reversal of provisions
Provisions (net of provision reversals) amounted to EUR 1,750 million in H1 2026 and included additional provisions for potential complaints related to motor finance dealer commissions in the UK mainly in Q1 2026 and a EUR 337 million charge (EUR 250 million net of tax) from M&A-related restructuring costs in Q2 2026
January - June 2026
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11
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•Statutory income statement
associated with the TSB acquisition. In H1 2025, this line totalled EUR 1,012 million.
Impairment or reversal of impairment of financial assets not measured at fair value through profit or loss (net)
Impairment of financial assets not measured at fair value through profit or loss (net) was EUR 6,571 million, impacted by Argentina, reflecting sector-wide trends in the country. In H1 2025, it was EUR 6,524 million and included provisions which strengthened the balance sheet after having updated macroeconomic parameters in Brazil’s credit provisioning models.
Impairment on other assets (net)
The impairment on other assets (net) was EUR 30 million. In H1 2025, the impairment on other assets totalled EUR 147 million.
Gains or losses on non-financial assets and investments (net)
This line recorded a net gain of EUR 16 million in H1 2026. In the same period in 2025, this line recorded a EUR 32 million loss.
Negative goodwill recognized in results
In H1 2026, there was EUR 5 million of negative goodwill. In H1 2025, we recorded EUR 22 million relating to the acquisition of CrediScotia Financiera from Scotiabank which expanded our presence in the consumer business in Peru.
Gains or losses on non-current assets held for sale not classified as discontinued operations
This item, which mainly includes the sale and impairments of foreclosed assets, recorded a EUR 4 million gain in H1 2026. In H1 2025, this line recorded a EUR 217 million gain, which included a capital gain in Q2 2025 of EUR 231 million from the sale of Santander’s remaining 30.5% stake in CACEIS.
Profit or loss before tax from continuing operations
Profit before tax was EUR 9,961 million in H1 2026, up 9% year-on-year, supported by solid performances in net interest income and net fee income, with good cost management.
Tax expense or income from continuing operations
Total tax expense in H1 2026 amounted to EUR 2,442 million, which includes a EUR 174 million charge corresponding to the accrual of the tax on expected income obtained in Spain for the year. In H1 2025, tax expense was EUR 2,367 million and included a EUR 174 million charge corresponding to the accrual of the tax on expected income obtained in Spain for the year.
Profit or loss after tax from discontinued operations
Profit from discontinued operations totalled EUR 1,895 million in H1 2026 corresponding to the capital gain generated from the completion of the Poland disposal, compared to EUR 726 million in H1 2025 which reflects the results associated with the business subject to the Poland disposal.
Profit attributable to non-controlling interests
Profit attributable to non-controlling interests amounted to EUR 441 million in H1 2026, compared to EUR 630 million in H1 2025.
Profit attributable to the parent
Profit attributable to the parent rose to a new record of EUR 8,973 million in H1 2026, compared to EUR 6,833 million in H1 2025. This 31% increase year-on-year was driven by our solid revenue performance and good cost control, also supported by the aforementioned capital gain, which more than offset the impact of additional provisions for potential complaints related to motor finance dealer commissions in the UK mainly in Q1 2026, amounting to EUR 194 million net of tax and non-controlling interests.

12
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•Underlying income statement
Underlying income statement
→ Another consecutive quarter of record profit, driven by solid revenue and cost performances.
→ We continue to drive profitable growth and efficiency improvement, maintaining sound credit quality.
→ Results include TSB from May 2026, with impacts of around 1 pp across the P&L.
Underlying attributable profit
EfficiencyUnderlying RoTE
EUR 7,328 million+15% in euros42.8%15.6%
+14% in constant euros-3 pp+0.7 pp
Note: changes vs. H1 2025.
H1 2026 results compared to H1 2025
The Group presents, both at the total Group level and for each of the business units, the changes in euros registered in the income statement, as well as variations excluding the exchange rate effect (i.e. in constant euros, except for Argentina and any grouping which includes it), understanding that the latter provide a better analysis of the Group’s management. For further information, see the 'Alternative performance measures' section in this report.
At the Group level, the impact of exchange rates during the period was not significant, with a favourable year-on-year impact of 0.7 pp on total income and an unfavourable impact of 0.2 pp on total costs.
In addition, to better understand the business trends, the underlying income statement includes the reclassification of certain items. These reclassifications between the underlying income statement and the statutory income statement include:
In H1 2026:
•Certain charges that, in the statutory income statement are recorded under the 'other results and provisions' line item, are presented in the underlying income statement under 'total costs'. These are mainly related to recurring operating charges, primarily related to labour and legal processes, amounting to EUR 676 million.
•In Q2 2026, we recorded additional provisions totalling EUR 39 million, net of tax and non-controlling interests, for potential complaints related to motor finance dealer commissions in the UK associated with our joint ventures, reclassified to the ‘other results and provisions’ line item.
In H1 2025:
•In the statutory income statement, the results related to the business subject to the Poland disposal are reported in the 'profit/(loss) after tax from discontinued operations' line item.
However, in the underlying income statement, the results related to the business subject to the Poland disposal are recorded in a single line item under 'non-recurring items', and are therefore excluded from the Group's underlying profit.
•Additionally, certain charges that, in the statutory income statement are recorded under the 'other results and provisions' line item, are presented in the underlying income statement under 'total costs'. These are mainly related to recurring operating charges, primarily related to labour and legal processes, amounting to EUR 865 million.
Summarized underlying income statement (EUR million)
Ex. TSB
ChangeChange
H1'26H1'25%% excl. FX%% excl. FX
Net interest income22,711 21,237 6.96.35.95.3
Net fee income6,851 6,311 8.67.48.37.2
Gains (losses) on financial transactions 1
732 1,026 (28.7)(28.6)(29.0)(28.9)
Other operating income553 392 41.144.042.345.3
Total income30,847 28,966 6.55.85.75.1
Total costs(13,211)(13,251)(0.3)(0.5)(1.3)(1.5)
Net operating income17,636 15,715 12.211.211.610.6
Net loan-loss provisions(6,574)(6,058)8.57.18.36.8
Other gains (losses) and provisions(715)(319)124.1127.3124.2127.4
Profit before tax10,347 9,338 10.810.09.99.1
Tax on profit(2,549)(2,577)(1.1)(2.3)(2.1)(3.3)
Profit from continuing operations7,798 6,761 15.314.714.513.9
Net profit from discontinued operations— — ————
Consolidated profit7,798 6,761 15.314.714.513.9
Non-controlling interests(470)(384)22.420.822.420.8
Underlying profit attributable to the parent 2
7,328 6,377 14.914.314.113.5
Non-recurring items1,645 456 260.7260.7264.8264.8
Profit attributable to the parent8,973 6,833 31.330.730.830.2
Underlying EPS (euros)0.48 0.40 19.9 
Underlying Diluted EPS (euros)0.48 0.40 19.8 
1. Includes exchange differences.
2. Excludes non-recurring items.
Note: all underlying management metrics have been calculated excluding Poland. For further information, see the 'Alternative performance measures' section in this report.
January - June 2026
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•Underlying income statement
Additionally, regarding results that fall outside the ordinary course of our business and are therefore excluded from the underlying income statement:
In H1 2026:
•The total amount recorded under the 'non-recurring items' line item was EUR 1,645 million, including the EUR 1,895 million capital gain from the completion of the Poland disposal in Q1 2026 and a EUR 250 million charge (net of tax) from M&A-related restructuring costs in Q2 2026 associated with the TSB acquisition.
In H1 2025:
•The total amount in 'non-recurring items' was EUR 456 million corresponding to the results related to the business subject to the Poland disposal.
•Additionally, in Q2 2025 this line included the following two events of the same value but opposite signs:
•A capital gain of EUR 231 million from the sale of Santander’s remaining 30.5% stake in CACEIS.
•A one-off charge of EUR 467 million (EUR 231 million, net of tax and minority interests), which strengthened the balance sheet after having updated macroeconomic parameters in Brazil’s credit provisioning models.
For further information on the reconciliation between the statutory and underlying income statements, see the 'Alternative performance measures' section in this report.
As a result, profit attributable to the parent and underlying profit attributable to the parent were not the same in either period.
•Profit attributable to the parent in H1 2026 was EUR 8,973 million, compared to EUR 6,833 million in H1 2025, representing a 31% year-on-year increase in euros, also +31% in constant euros.
•Underlying profit attributable to the parent reached EUR 7,328 million in H1 2026, compared to EUR 6,377 million in H1 2025. This represents a 15% increase year-on-year in euros, +14% in constant euros.
This underlying profit year-on-year comparison reflects solid trends in both total income and total costs and was also slightly favoured by the incorporation of TSB from May 2026 (excluding TSB, underlying attributable profit rose 14%, also +14% in constant euros).
Total income amounted to EUR 30,847 million in H1 2026, a 6% increase year-on-year. In constant euros, it also increased by 6% year-on-year, with the following detail by line:
•Net interest income (NII) performed well, increasing 6% year-on-year. By business:
•In Retail, it grew by 4%, with positive performances in most countries supported by higher volumes and our active balance sheet management, in addition to being slightly favoured by the incorporation of TSB.

•In Openbank, the positive trends from last year continued, rising 4% especially in Openbank Europe and in South America, supported by higher volumes and disciplined margin management.
•In CIB, NII increased strongly (+36%), mainly due to higher financing volumes in less capital-intensive products in Global Markets.
•In Wealth, NII declined 1%, though it improved in the quarter supported by higher loan yields and an increase in the credit portfolio.
•In Payments, NII decreased 2%, mainly due to Argentina.
Net interest income
EUR million
leyendaconstantesa07a.gif
constant euros
chart-71a65ed1742a449a832a.jpg
•Net fee income rose 7% year-on-year, driven by widespread growth across all businesses, benefitting from the network effect and higher transactionality. By business:
•In Retail, it grew by 6%, particularly in transactional, FX, insurance and mutual fund fees and with good trends across most countries.
•In Openbank, net fee income increased by 6%, with particularly strong performances in Brazil, which benefitted from portfolio expansion and higher insurance activity, and Europe, driven by a pickup in new business volumes.
•In CIB, it grew 7%, reflecting a strong second quarter in Global Banking, particularly in Corporate Finance in the US and Europe.
•In Wealth, it rose 11%, with strong performances in both business lines, but particularly in Private Banking, driven by solid commercial activity and our focus on promoting fee-generating activities and products.
•In Payments, it increased 8% driven mainly by Getnet due to higher activity.
This net fee income growth is in line with our target of increasing net fee income at a faster rate than net interest income.
14
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January - June 2026
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•Underlying income statement
Net fee income
EUR million
leyendaconstantesa07a.gif
constant euros
chart-a88b6a52da004be4825a.jpg
•Gains on financial transactions decreased 29%, affected by a weaker performance in the Corporate Centre, due to higher impacts from foreign exchange hedges, and a decline CIB due to lower market volatility in Europe and Latin America, partially offset by solid performances in the other businesses, mainly in Wealth.
•Other operating income increased 44% compared to the same period in 2025, as dividends from our stake in Poland and higher results from certain stakes, both recorded in the Corporate Centre, more than offset a greater negative impact from the hyperinflation adjustment in Argentina and lower leasing revenue in Openbank US.
This total income performance keeps us on track to achieve our mid-single-digit revenue growth target for 2026.
Total income
EUR million
leyendaconstantesa07a.gif
constant euros
chart-e3a5f9693181443991da.jpg
Total costs in H1 2026 amounted to EUR 13,211 million, in line with H1 2025. In constant euros, they declined 1%. In real terms (i.e. excluding the impact of average inflation and perimeter effects and in constant euros), they were 5% lower.
The positive performance reflects our transformation efforts and lower charges related to asset impairments and operational risk, mainly in Retail in Spain and the UK and in Openbank Europe.

Our cost management remained focused on structurally improving our efficiency and our target of bringing it to levels close to 36% by the end of 2028. With that aim, we continued to make progress in our transformation plan, ONE Transformation, which provides greater operational leverage, improving business dynamics, simplifying processes and promoting leaner and more agile structures.
By business and in constant euros, total costs performed as follows:
•In Retail, total costs declined by 3%. In real terms, they fell 8%, reflecting our transformation efforts and lower asset impairment and operational risk charges. The efficiency ratio improved to 40.5% from 43.4% in H1 2025.
•In Openbank, total costs decreased 3%. In real terms, they declined 6% backed by our efficiency efforts and or focus on transformation, primarily in Europe and the US, as well as by lower legal and asset impairment charges. The efficiency ratio improved to 41.6% from 44.5% in H1 2025.
•In CIB, total costs rose 7%, +4% in real terms, reflecting higher activity levels, but they increased at a much slower pace than revenue. We maintained a leading position among peers in terms of efficiency, with the efficiency ratio improving to 40.8% from 44.7% in H1 2025.
•In Wealth, total costs grew 6%, +3% in real terms, due to our investments to strengthen our teams and develop new capabilities to address increasing commercial activity. The efficiency ratio improved to 35.0% from 36.3% in H1 2025.
•In Payments, total costs rose 8%, reflecting investments in the development of our global platforms. However, costs grew at a lower pace than revenue, which increased double digits.
Total costs
EUR million
leyendaconstantesa07a.gif
constant euros
chart-acb03b6803ee46eca3ba.jpg
Net operating income in H1 2026 amounted to EUR 17,636 million, up 12% compared to H1 2025. In constant euros, it rose 11%, underpinned by the good performances across net interest income and net fee income and reflecting the positive impacts from our transformation efforts on costs.
The efficiency ratio stood at 42.8%, improving by 3 pp year-on-year, supported by the positive dynamics in both revenue and costs, with efficiency improvements across all global businesses.
January - June 2026
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15
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•Underlying income statement
Net operating income
EUR million
leyendaconstantesa07a.gif
constant euros
chart-572d767b4171441892ea.jpg
Net loan-loss provisions amounted to EUR 6,574 million in H1 2026, an 9% increase year-on-year.
In constant euros, they grew 7%, mainly due to higher provisions in Retail Argentina, reflecting sector-wide trends in the country and some single names in CIB in Europe and Brazil. Excluding Argentina, the Group's net loan-loss provisions were broadly stable in constant euros, with a good performance in Retail (mainly in Spain) and a decline in the Corporate Centre, having recorded provisions in H1 2025 related to our plan to accelerate NPL ratio reductions, which improved the Group's credit quality.
All in all, the cost of risk was broadly stable at 1.15%, in line with the Group’s year-end target.
Net loan-loss provisions
EUR million
leyendaconstantesa07a.gif
constant euros
chart-64c13e4b9784415783ba.jpg
Other gains (losses) and provisions registered a EUR 715 million loss, compared to a EUR 319 million loss in H1 2025. This comparison was impacted by the EUR 245 million additional provisions for potential complaints related to motor finance dealer
commissions in the UK (EUR 194 million, net of tax and non-controlling interests) in H1 2026 as well as by higher charges related to our transformation, mainly in Retail and Openbank Europe.
Tax on profit amounted to EUR 2,549 million, a 1% decline year-on-year. In constant euros, it fell 2%, mainly due to a lower tax burden in the Corporate Centre. In both H1 2026 and H1 2025, this line included a charge related to the accrual of the tax on expected income obtained in Spain for the year, for similar amounts.
Underlying profit attributable to the parent in H1 2026 reached EUR 7,328 million, 15% higher than in H1 2025. In constant euros, it increased by 14% year-on-year, keeping us on track to achieve our 2026 underlying profit target of more than EUR 14.1 billion.
Underlying profit attributable to the parent
EUR million
leyendaconstantesa07a.gif
constant euros
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Underlying RoTE for H1 2026 reached 15.6% compared to 14.9% in H1 2025. Underlying RoRWA stood at 2.55% (2.23% in H1 2025) and underlying earnings per share stood at EUR 0.48 (EUR 0.40 in H1 2025).
The 'Non-recurring items' line in H1 2026 recorded a EUR 1,645 million result, corresponding to the capital gain from the completion of the Poland disposal in Q1 2026, partially offset by EUR 250 million of restructuring costs related to the TSB integration in Q2 2026. In H1 2025, this line recorded a EUR 456 million positive result related to the business subject to the Poland disposal.
Considering these non-recurring items, profit attributable to the parent in H1 2026 was EUR 8,973 million, +31% year-on-year, +31% also in constant euros.
RoTE for H1 2026 reached 17.4% compared to 16.0% in H1 2025. RoRWA was 2.81% (2.35% in H1 2025) and earnings per share stood at EUR 0.60 (EUR 0.43 in H1 2025).


16
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January - June 2026
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•Underlying income statement
Q2 2026 results compared to Q1 2026
As described above, there were some results that did not form part of our underlying business that were included under 'non-recurring items' in both Q2 2026 and Q1 2026. We recorded a EUR 250 million (net of tax) charge for restructuring costs related to the acquisition of TSB in Q2 2026 and a EUR 1,895 million capital gain from the completion of the Poland disposal in Q1 2026.
As a result, profit attributable to the parent and underlying profit attributable to the parent were not the same in either period.
•Profit attributable to the parent in Q2 2026 was EUR 3,518 million, compared to EUR 5,455 million in Q1 2026, which was favoured by the aforementioned capital gain from the Poland disposal.
•Underlying profit attributable to the parent in Q2 2026 stood at EUR 3,768 million, compared to EUR 3,560 million in Q1 2026.
This represents a 6% quarter-on-quarter increase in underlying profit. In constant euros, it rose 5%, supported by a solid revenue performance and the incorporation of TSB in May 2026 (excluding TSB, underlying profit was up 4%,+3% in constant euros). In constant euros:
•Total income rose 2%, by line as follows:
•Net interest income increased by 5%, supported by Retail (+7%), with positive trends in most countries, especially in the
UK driven by TSB, as well as by CIB (increases across business lines) and a pickup in Wealth.
•Net fee income rose 3%, boosted especially by CIB (+14%), driven by strong activity in the quarter in Global Banking.
•Gains on financial transactions declined significantly, due to lower results in Global Markets in CIB, affected by lower volatility.
•Total costs increased 3% quarter-on-quarter mainly driven by the incorporation of TSB in Retail UK, partially offset by a good performance in Openbank in the US and Europe.
•Net loan-loss provisions rose 2% driven by higher provisions in Retail, especially in Spain and the UK (balance sheet optimization initiatives) and some single names in CIB.
•The other gains (losses) and provisions line item recorded a EUR 313 million loss, compared to a EUR 402 million loss in Q1 2026. This improvement reflected lower additional provisions for potential complaints related to motor finance dealer commissions in the UK (EUR 39 million in Q2 2026 compared to EUR 207 million in Q1 2026), which more than offset higher charges related to our transformation, mainly in Retail Spain.
Summarized underlying income statement (EUR million)
ChangeEx. TSB
Change
Q2'26Q1'26%% excl. FX%% excl. FX
Net interest income11,692 11,019 6.14.84.22.8
Net fee income3,494 3,357 4.12.73.62.3
Gains (losses) on financial transactions 1
81 651 (87.6)(87.8)(88.1)(88.3)
Other operating income440 113 289.4289.0293.6293.3
Total income15,707 15,140 3.72.52.21.0
Total costs(6,727)(6,484)3.72.51.70.5
Net operating income8,980 8,656 3.72.42.61.3
Net loan-loss provisions(3,349)(3,225)3.81.93.41.4
Other gains (losses) and provisions(313)(402)(22.1)(22.5)(22.1)(22.5)
Profit before tax5,318 5,029 5.74.74.23.1
Tax on profit(1,299)(1,250)3.92.81.80.7
Profit from continuing operations4,019 3,779 6.45.34.93.9
Net profit from discontinued operations— — ————
Consolidated profit4,019 3,779 6.45.34.93.9
Non-controlling interests(251)(219)14.613.614.613.6
Underlying profit attributable to the parent 2
3,768 3,560 5.84.84.33.3
Non-recurring items(250)1,895 ————
Profit attributable to the parent3,518 5,455 (35.5)(36.0)(36.2)(36.7)
Underlying EPS (euros)0.25 0.23 7.6 
Underlying Diluted EPS (euros)0.25 0.23 7.6 
1. Includes exchange differences.
2. Excludes non-recurring items.
January - June 2026
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17
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•Balance sheet
Grupo Santander's balance sheet
As a result of the Poland disposal and in accordance with IFRS 5 requirements, the assets associated with the Poland disposal were classified under the 'non-current assets held for sale' line item in the Group’s consolidated balance sheet and the related liabilities under 'liabilities associated with non-current assets held for sale' from the announcement of disposal until its completion. As previously explained in the 'Significant events in the period' section, the balance sheet includes TSB from May 2026.

Grupo Santander. Condensed balance sheet
EUR million
Change
AssetsJun-26Jun-25Absolute%Dec-25
Cash, cash balances at central banks and other demand deposits138,008 175,555 (37,547)(21.4)152,281 
Financial assets held for trading 286,941 234,834 52,107 22.2 252,318 
   Debt securities113,686 85,290 28,396 33.3 98,568 
   Equity instruments23,105 16,278 6,827 41.9 22,030 
   Loans and advances to customers49,308 35,715 13,593 38.1 32,766 
   Loans and advances to central banks and credit institutions41,596 39,263 2,333 5.9 40,599 
   Derivatives59,246 58,288 958 1.6 58,355 
Financial assets designated at fair value through profit or loss1
15,942 14,515 1,427 9.8 15,807 
   Loans and advances to customers6,087 5,597 490 8.8 6,440 
   Loans and advances to central banks and credit institutions436 1,110 (674)(60.7)413 
   Other (debt securities an equity instruments)9,419 7,808 1,611 20.6 8,954 
Financial assets at fair value through other comprehensive income75,371 75,801 (430)(0.6)74,612 
   Debt securities58,970 60,929 (1,959)(3.2)58,305 
   Equity instruments3,602 2,300 1,302 56.6 2,281 
   Loans and advances to customers12,444 12,268 176 1.4 12,906 
   Loans and advances to central banks and credit institutions355 304 51 16.8 1,120 
Financial assets measured at amortized cost1,334,351 1,148,957 185,394 16.1 1,202,689 
   Debt securities165,861 119,661 46,200 38.6 140,014 
   Loans and advances to customers1,081,323 957,147 124,176 13.0 985,176 
   Loans and advances to central banks and credit institutions87,167 72,149 15,018 20.8 77,499 
Investments in subsidiaries, joint ventures and associates7,722 7,191 531 7.4 7,052 
Tangible assets26,480 28,997 (2,517)(8.7)27,438 
Intangible assets18,772 17,249 1,523 8.8 17,308 
    Goodwill13,143 11,960 1,183 9.9 11,958 
    Other intangible assets5,629 5,289 340 6.4 5,350 
Non-current assets held for sale2,866 68,710 (65,844)(95.8)75,011 
Other assets2
48,012 44,079 3,933 8.9 42,999 
Total assets1,954,465 1,815,888 138,577 7.6 1,867,515 
Liabilities and shareholders' equity
Financial liabilities held for trading 193,417 155,682 37,735 24.2 171,546 
   Customer deposits47,168 39,997 7,171 17.9 36,120 
   Debt securities issued— — — — — 
   Deposits by central banks and credit institutions51,974 30,816 21,158 68.7 39,443 
   Derivatives52,319 50,396 1,923 3.8 51,968 
   Other41,956 34,473 7,483 21.7 44,015 
Financial liabilities designated at fair value through profit or loss43,407 35,513 7,894 22.2 42,148 
   Customer deposits26,214 22,499 3,715 16.5 25,930 
   Debt securities issued15,221 9,671 5,550 57.4 11,686 
   Deposits by central banks and credit institutions1,950 3,343 (1,393)(41.7)4,510 
   Other22 — 22 — 22 
Financial liabilities measured at amortized cost1,543,776 1,400,632 143,144 10.2 1,421,184 
   Customer deposits1,060,380 945,733 114,647 12.1 979,150 
   Debt securities issued332,846 302,292 30,554 10.1 312,704 
   Deposits by central banks and credit institutions100,832 108,310 (7,478)(6.9)93,234 
   Other49,718 44,297 5,421 12.2 36,096 
Liabilities under insurance contracts19,347 18,343 1,004 5.5 18,737 
Provisions9,211 8,098 1,113 13.7 8,355 
Liabilities associated with non-current assets held for sale— 59,361 (59,361)(100.0)62,995 
Other liabilities3
29,409 29,274 135 0.5 29,802 
Total liabilities1,838,567 1,706,903 131,664 7.71,754,767 
Shareholders' equity143,259 138,066 5,193 3.8 141,144 
   Capital stock7,345 7,443 (98)(1.3)7,345 
   Reserves4
126,941 123,790 3,151 2.5 121,396 
   Profit attributable to the Group 8,973 6,833 2,140 31.3 14,101 
   Less: dividends— — — — (1,698)
Other comprehensive income(33,913)(37,565)3,652 (9.7)(37,974)
Minority interests6,552 8,484 (1,932)(22.8)9,578 
Total equity115,898 108,985 6,913 6.3 112,748 
Total liabilities and equity1,954,465 1,815,888 138,577 7.6 1,867,515 

Note: the condensed balance sheet groups some lines of the consolidated balance sheet on pages 83 and 84 as follows:
1.'Non-trading financial assets mandatorily at fair value through profit or loss' and 'Financial assets designated at fair value through profit or loss'.
2.‘Hedging derivatives’; ‘Changes in the fair value of hedged items in portfolio hedges of interest risk’; 'Assets under reinsurance contracts'; ‘Tax assets’; and ‘Other assets’.
3.‘Hedging derivatives’; ‘Changes in the fair value of hedged items in portfolio hedges of interest rate risk’; ‘Tax liabilities’; and ‘Other liabilities‘.
4.‘Share premium’; ‘Equity instruments issued other than capital’; ‘Other equity’; ‘Accumulated retained earnings’; ‘Revaluation reserves’; ‘Other reserves’; and ‘Own shares’.
18
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January - June 2026
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•Balance sheet
Gross loans and advances to customers (excl. reverse repos)
Customer funds (deposits excl. repos + mutual funds)
Good performance of the loan portfolio, boosted, in part, by the incorporation of TSB into our Retail business.
Customer funds increased both quarter-on-quarter and year-on-year, also supported by the incorporation of TSB.
EUR 1,072 billion+5% QoQ+1% QoQ ex. TSBEUR 1,297 bn+6% QoQ+2% QoQ ex. TSB
+9% YoY+5% YoY ex. TSB+11% YoY+7% YoY ex. TSB
By business:
By product:
Year-on-year growth across all businesses. Notable increases in Retail mortgages, auto in Openbank and a double-digit rise in CIB.
Compared to June 2025, higher deposits, both demand and time deposits, and strong growth in mutual funds, with widespread increases across countries.
Retailex. TSBOpenbankCIBDemandex. TSBTimeex. TSBMutual funds
+9%+2%+3%+22%+7%+2%+14%+11%+16%
Note: changes in constant euros.
Loans and advances to customers
As at 30 June 2026, loans and advances to customers stood at EUR 1,149,162 million, a 7% increase quarter-on-quarter, and +14% year-on-year. These quarter-on-quarter and year-on-year comparisons were favoured by the incorporation of TSB from May 2026.
For the purpose of analysing traditional banking loans, the Group uses gross loans and advances to customers excluding reverse repos. As at 30 June 2026, gross loans and advances to customers excluding reverse repos, totalled EUR 1,071,562 million.
Additionally, the comments below do not include the exchange rate impact (i.e. in constant euros) except for Argentina and any grouping which includes it. For further information, see the 'Alternative performance measures' section in this report.
Compared to March 2026, gross loans and advances to customers excluding reverse repos increased 5% in constant euros (+1% excluding TSB), with the following detail:
•In Retail, they increased by 7%, favoured by the incorporation of TSB, whose loan portfolio is largely concentrated in mortgages to individuals. Excluding TSB, they rose 1%, as widespread increases in mortgages more than offset lower SME loans mainly in Spain and Brazil.
•In Openbank, they were up 2%, due to higher auto balances across our main markets.
•In CIB, loans increased 2%, boosted by increases in Global Transaction Banking and Global Markets.
•In Wealth, loans rose 6%, with broad-based growth across countries, particularly in Spain.
Gross loans and advances to customers (excl. reverse repos)
EUR billion
chart-025adb5c5bef4944822a.jpg
+11 
%
1
Jun-26 / Jun-25
1. In constant euros: +9%.
•In Payments, loan balances are not material as they represent only 0.1% of the Group total.
Compared to June 2025, gross loans and advances to customers (excluding reverse repos) grew 9% in constant euros (+5% excluding TSB), as follows:
•In Retail, they rose 9%. Excluding TSB, loans rose 2%, with increases across all products except SMEs, which were affected by declines in Spain (ICO loan maturities and our focus on active risk management and balance sheet optimization). There were strong performances across our footprint in mortgages, in most countries in personal loans and in loans to corporates, mainly in Brazil and Europe.
•In Openbank, they were up 3%, boosted by the good performances in auto (+6%) across our footprint.
•In CIB, they increased 22%, boosted by growth across business lines, especially in less capital-intensive products, such as Export Finance (ECAs) and Trade Finance in Global Transaction Banking and securitized products in Global Markets.
•In Wealth, they increased 6%, particularly in Spain and the US, both rising double digits.
As at 30 June 2026, gross loans and advances to customers excluding reverse repos, maintained a diversified mix across our footprint, with presence in different countries in Europe, Latin America and the US.
Gross loans and advances to customers (excl. reverse repos)
% operating areas. June 2026
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January - June 2026
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19
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•Balance sheet
Customer funds
Customer deposits amounted to EUR 1,133,762 million as at 30 June 2026, up 7% quarter-on-quarter and 12% year-on-year. Both comparisons benefitted from the incorporation of TSB from May 2026.
The Group uses customer funds (customer deposits excluding repos, plus mutual funds) for the purpose of analysing traditional retail banking funds. As at 30 June 2026, they amounted to EUR 1,297,293 million.
The comments below do not include the exchange rate impact (i.e. in constant euros), except for Argentina and any grouping which includes it. For further information, see the 'Alternative performance measures' section in this report.
Compared to March 2026, customer funds increased 6% in constant euros. Excluding TSB, they were up 2%, with the following detail:
•By product, customer deposits excluding repos increased 1%, driven by both demand and time deposits, while mutual funds continued to grow (+6%).
•By business, customer funds grew in Retail (+2%), Wealth (+5%) and Openbank (+1%), which more than offset the decrease in CIB (-2%).
Compared to June 2025, customer funds were 11% higher in constant euros. Excluding TSB, they were up 7%, with the following detail:
•By product, deposits excluding repos rose 5%, with growth mainly in time deposits and, to a lesser extent, in demand deposits. Mutual funds increased 16%, with solid performances across countries.
•By business, they rose 8% in Retail, driven by double-digit growth in time deposits and mutual funds, with growth also in demand deposits They grew 4% in Openbank, supported by higher demand deposits as part of our funding cost optimization strategy, and by mutual funds, which recorded double-digit growth. In CIB, they increased 1%, as higher time deposits more than offset declines in mutual funds and demand deposits. In Wealth, they were up 12% driven by mutual funds (+19%).
•By country, customer funds grew across our footprint.
As at 30 June 2026, customer funds maintained a diversified mix across our footprint, with presence in Europe, Latin America and the US. The weight of demand deposits as a percentage of total customer funds was 53%, while time deposits accounted for 25% of the total and mutual funds for 22%.
In addition to capturing customer deposits, the Group, for strategic reasons, maintains a selective policy of issuing securities in the international fixed income markets and strives to adapt the frequency
Customer funds
EUR billion.
chart-5f88875155d84683a96a.jpg
+13% ¹1
+20%
+11%
•Total
•Mutual funds
•Deposits excl. repos
Jun-26 / Jun-25
1. In constant euros: +11%.
and volume of its market operations to the structural liquidity needs of each unit, as well as to the receptiveness of each market. The Group's issuances for H1 2026 were as follows:
•Medium- and long-term senior debt totalling EUR 14,009 million and covered bonds placed in the market for EUR 6,806 million.
•TLAC eligible instruments issued amounted to EUR 9,796 million, of which EUR 7,156 million was senior non-preferred, EUR 1,356 million was subordinated debt and EUR 1,284 million was contingently convertible AT1s (CoCos).
•Maturities of medium- and long-term debt totalled EUR 25,832 million.
The net loan-to-deposit ratio was 101% (100% in June 2025), and the ratio of deposits plus medium- and long-term funding to the Group’s loans was 124%, showing a comfortable funding structure. The Group liquidity coverage ratio (LCR) was an estimated 155% in June 2026 (see the 'Risk management' chapter of this report).
The Group's access to wholesale funding markets, as well as the cost of issuances depends, in part, on the ratings granted by the rating agencies.
Rating agencies
Long termShort termOutlook
Fitch RatingsA (Senior A+)F1 (Senior F1)Stable
Moody'sA1P-1Stable
S&P Global RatingsA+A-1Stable
DBRSA (High)R-1 (Middle)Stable
Following the upgrade of the Kingdom of Spain's rating in September 2025, Moody's raised Santander's long-term rating to A1 and maintained the short-term rating at P-1 in October 2025.
Fitch has maintained A+ rating for Santander's long-term senior rating since Q1 2025.
S&P Global Ratings maintained Santander's credit rating at A+ for long-term and A-1 for short-term debt. Since Q2 2024, S&P has maintained its BBB- (investment grade) rating for our AT1 instruments.
All four agencies view the outlook as stable, in line with their respective ratings for the sovereign.
Sometimes the methodology applied by the rating agencies limits a bank's rating to the sovereign rating of the country where it is headquartered. Banco Santander, S.A. is still rated above the sovereign debt rating of the Kingdom of Spain in long-term senior debt by Moody's and Fitch, and rated at the same level by S&P and DBRS. These ratings above the sovereign demonstrate our financial strength and the benefits derived from our diversification.
Customer funds
% operating areas. June 2026
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20
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January - June 2026
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•Solvency ratios
Solvency ratios
Phased-in capital ratio
CET1 ratio
The phased-in CET1 ratio stood at 14.0%, keeping us on track to end the year within our target range of 12.8-13%.
In the quarter, the CET1 ratio increased 0.2 pp excluding the impact of the TSB acquisition.
capital_eng.jpg
Attributable profit+61 bps
Ordinary capital distribution1
-33 bps
Value creation
TNAVps
€6.32
TNAVps + Cash DPS
+19% YoY
Note: Phased-in ratios are calculated in accordance with the transitory treatment of the CRR.
As at 30 June 2026, the total phased-in capital ratio (applying the CRR transitional arrangements) stood at 18.8% and the phased-in CET1 ratio at 14.0%.
We comfortably meet the levels required by the ECB on a consolidated basis, estimated at 14.1% for the total capital ratio and at 9.8% for the CET1 ratio. This resulted in a distance to the maximum distributable amount (MDA) of 401 bps and a CET1 management buffer of 418 bps.
In the quarter, the CET1 ratio declined 0.4 pp to 14.0%, mainly due to the acquisition of TSB in May (-55 bps). Excluding this impact, the CET1 ratio increased 0.2 pp as net organic capital generation remained solid at +27 bps in the quarter, the result of +61 bps from attributable profit, -33 bps from capital distributions1 (in line with our 50% payout target) and -1 bp from net RWA growth. Additionally, there was a +4 bp contribution in 'Regulatory & models' following model updates and -11 bps in 'Markets & others' mainly from deductions related to DTAs.
Taking into account the expected impact from the Webster acquisition (which is subject to completion)2, estimated at c.-150 bps, we remain on track to meet our aim to end the year with a CET1 ratio in the range of 12.8-13%, at the top end of our 12-13% operating range.
TNAV per share ended the quarter at EUR 6.32. Including the interim cash dividend charged against 2025 results paid in November 2025 (EUR 11.50 cents per share) and the final cash dividend charged against 2025 results paid in May 2026 (EUR 12.50 cents per share), TNAV plus cash dividend per share increased 19.3% over the last twelve months (+3.1% in the quarter).
Lastly, the leverage ratio was 4.81%.
Eligible capital. June 2026
EUR million
Phased-in
CET186,447 
Basic capital96,673 
Eligible capital115,750 
Risk-weighted assets616,803 
%
CET1 capital ratio14.0 
Tier 1 capital ratio15.7 
Total capital ratio18.8 
CET1 ratio performance
%
chart-73e7142232694a3bb7aa.jpg
2026 target 12.8-13%
Note: Phased-in ratios are calculated in accordance with the transitory treatment of the CRR.
1.Capital distribution includes deductions for the accrual of ordinary shareholder remuneration and AT1 costs. For further information on our shareholder remuneration policy, see the 'Santander share' section in this report.
2.The transaction is subject to customary closing conditions, including the corresponding regulatory approvals.
3.Business RWA change net of risk transfer initiatives.
January - June 2026
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21
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•Risk management
Risk management
Credit risk
Market risk
Credit quality indicators remained contained within expected levels.Average VaR decreased slightly in Q2 2026, reflecting lower market volatility amid expectations of reduced geopolitical tensions in the Middle East.
Cost of riskNPL ratioNPL coverage ratioAverage VaR
1.15%2.93%64%Q2'26EUR 18 million-EUR 1 mn vs. Q1'26
+1 bp vs. Mar-26-7 bps vs. Mar-26-1 pp vs. Mar-26
Structural and liquidity risk
Operational risk
Robust and diversified liquidity buffer, with ratios well above regulatory requirements.In Q2 2026, our operational risk profile remained stable, focusing on risks associated with suppliers, technology, cyberrisk and business continuity. Operational losses declined compared to the previous quarter.
Liquidity Coverage Ratio (LCR)
155%1
+4 pp vs. Mar-26
Credit risk2
In H1 2026, the global economy remained relatively resilient, despite an environment marked by geopolitical tensions, uncertainty surrounding trade policies and central banks' monetary policy decisions in response to inflation and economic developments. These factors resulted in pressure on energy markets and some bouts of volatility, though less pronounced in Q2 2026.
In this context, our global and diversified business model, together with our strong local presence and prudent risk management, enable us to maintain a medium-low risk profile, even in a still uncertain macroeconomic and geopolitical environment.
In terms of credit quality:
•The NPL ratio stood at 2.93%, improving 7 bps compared to March 2026, driven by gross credit risk with customers (total risk), which grew 7% to EUR 1,281 billion, mainly driven by positive volume trends in Retail (favoured by the integration of TSB in the UK) and CIB. This improvement was partially offset by an increase in credit impaired loans, which rose 5% to EUR 37,560 million, impacted by less favourable exchange rate movements, dynamics in certain portfolios (primarily in CIB, due to some single names), and the integration of TSB in Retail.
Year-on-year, the NPL ratio remained under control (+3 bps), as some increases in credit impaired loans, partly impacted by exchange rate movements and portfolio trends in Argentina, were mostly offset by total risk growth, mainly in CIB and Retail.
•In Q2 2026, net loan-loss provisions totalled EUR 3,349 million, up 2% in constant euros compared to the previous quarter, driven by higher Retail provisions, particularly in Spain and the UK, due to balance sheet optimization initiatives, and some single names in CIB.
In H1 2026, provisions rose 7% year-on-year in constant euros, reaching EUR 6,574 million, mainly due to higher provisions in Retail in Argentina, reflecting sector-wide trends in the country, and in CIB, due to some single names in Europe and Brazil. Excluding Argentina, the Group's net loan-loss provisions were practically stable year-on-year in constant euros, with a good performance in Retail (mainly in Spain) and lower provisions in the Corporate Centre, following provisions recorded in H1 2025 related to our plan to accelerate NPL ratio reductions, which improved the Group's credit quality.
Key risk metrics
Net loan-loss provisions 3
Cost of risk (%) 4
NPL ratio (%)NPL coverage ratio (%)
Q2'26H1'26Chg (%)
/ H1'25		Chg (%)
/ Q1'26		Jun-26Chg (bps)
/ Jun-25		Chg (bps)
/ Mar-26		Jun-26Chg (bps)
/ Jun-25		Chg (bps)
/ Mar-26		Jun-26Chg (pp)
/ Jun-25		Chg (pp)
/ Mar-26
Retail2,0784,0215.74.31.19623.05(6)(13)662(1)
Openbank1,0292,0842.7(3.4)2.09025.6164970(7)(1)
CIB238444447.313.80.292261.02251737(6)0
Wealth(2)7(66.3)—0.03(16)(6)1.1721(2)50(21)(7)
TOTAL GROUP3,3496,5747.11.91.15212.933-764(2)(1)
Note: Payment Solutions' detail is not disclosed, as credit risk metrics are not relevant for this type of business.
All management metrics included in this section have been calculated excluding Poland.
1.Group LCR. See 'Structural and liquidity risk' in this section. Provisional data.
2.Changes in current euros, unless otherwise indicated.
3.EUR million. % change in constant euros.
4.Calculated as underlying allowances for loan-loss provisions over the last 12 months / Average loans and advances to customers and debt securities issued by non-financial institutions over the last 12 months.
For more detailed information, please see the 'Alternative performance measures' section.
22
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January - June 2026
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•Risk management

•Cost of risk stood at 1.15%, 1 bp above March 2026 and 2 bps above June 2025. Excluding Argentina, cost of risk would have improved 1 bp quarter-on-quarter and 2 bps year-on-year.
•The NPL coverage ratio was broadly stable in Q2 2026 at 64%, with loan-loss allowances of EUR 24,207 million. The coverage ratio remained at comfortable levels considering that more than 65% of the Group’s portfolio is backed by quality collateral.
Regarding the IFRS 9 stages, the distribution of the portfolio was stable in Q2 2026 in percentage terms.
NPL coverage ratio by stage
EUR billion
Exposure1
NPL coverage2
Jun-26Mar-26Jun-25Jun-26Mar-26Jun-25
Stage 11,0901,0249650.3%0.3%0.3%
Stage 29389825.4%5.7%5.7%
Stage 338363341.7%41.9%42.1%
1. Exposure subject to impairment. Additionally, in June 2026 there were EUR 60 billion in loans and advances to customers not subject to impairment recorded at mark to market with changes through P&L (EUR 48 billion in March 2026 and EUR 46 billion in June 2025).
Stage 1: financial instruments for which no significant increase in credit risk has been identified since its initial recognition.
Stage 2: if there has been a significant increase in credit risk since the date of initial recognition but the impairment event has not materialized, the financial instrument is classified in Stage 2.
Stage 3: a financial instrument is catalogued in this stage when it shows effective signs of impairment as a result of one or more events that have already occurred resulting in a loss.
2. Total loan-loss reserves in each stage / exposure subject to impairment in each stage.
Credit impaired loans and loan-loss allowances
EUR million
Change (%)
Q2'26QoQYoY
Balance at beginning of period35,893 6.4 5.0 
   Net additions4,121 (8.9)37.2 
   Increase in scope of consolidation502 — — 
   Exchange rate differences and other306 (58.5)— 
   Write-offs(3,262)5.1 (7.7)
Balance at period-end37,560 4.6 15.1 
Loan-loss allowances24,207 2.7 10.9 
   For impaired assets15,659 4.1 12.7 
   For other assets8,548 0.2 7.7 
Our Retail, Openbank and CIB businesses account for around 97% of the Group's total credit portfolio as of 30 June 2026, while Payment Solutions and Wealth have limited balance sheet exposure. Therefore, the following explanations are focused on the most relevant businesses from a credit risk management point of view:
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Retail & Commercial Banking
Credit risk exposure
55% of total Group
Retail's portfolio mainly comprises high quality mortgage loans, where around 90% of loans have a loan to value below 80%, and a corporate portfolio in which more than 50% has property collateral or other collateral.
The NPL ratio improved 13 bps in Q2 2026 to 3.05%, driven by an increase in total risk (+8%), underpinned by widespread growth and the integration of TSB. Credit impaired loans were up 3%, mainly due to the aforementioned integration and some single names in the corporate portfolio in Brazil.
The cost of risk rose 6 bps compared to June 2025, reaching 1.19%, with higher provisions, mainly in Argentina (reflecting sector-wide trends in the country), Mexico (partially due to higher lending activity and model updates) and the UK (partly due to portfolio normalization). This was partially offset by solid trends in Spain (driven by a good portfolio performance and our balance sheet optimization strategy) and Brazil (underpinned by prudent risk management and a shift in the portfolio mix). Compared to Q1 2026, cost of risk increased 2 bps, with higher provisions, mainly in Argentina, Mexico and the UK, partially offset by a good performance in Spain.
The NPL coverage ratio decreased 1 pp in Q2 2026, reaching 66%, a level we consider appropriate given the Retail portfolio includes the mortgage portfolios in Spain and the UK, which have high-quality collateral.
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Openbank
Credit risk exposure
17% of total Group
Openbank comprises business originated by consumer finance companies, including our digital bank (formerly called Openbank), Open Digital Services (ODS) and our retail business in the US.
The NPL ratio stood at 5.61%, 9 bps above that of March 2026, as a 4% increase in credit impaired loans, primarily in the US and Brazil, was partially offset by total risk growth (+2%), supported by solid trends across most of our markets, particularly in Openbank Europe, the US and Brazil.
The cost of risk was stable compared to June 2025, standing at 2.09%, the result of a good performance in provisions in the US, driven by the implementation of capital optimization measures and resilient consumer behaviour, backed by persistently high used car prices. This positive dynamic was partly offset by increases in other units, mainly in Openbank Europe, which was impacted in part by the macro environment and a credit quality deterioration in corporates. Compared to Q1 2026, cost of risk was up 2 bps, due to higher provisions, especially in Brazil and Openbank Europe, partially offset by a good performance in the US.
The NPL coverage ratio decreased 1 pp in Q2 2026, standing at 70%, a level we are comfortable with considering more than 80% of the portfolio consists of auto loans.

January - June 2026
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23
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•Risk management
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Corporate & Investment Banking
Credit risk exposure
25% of total Group
CIB comprises Global Transaction Banking, Global Banking (Global Debt Financing and Corporate Finance) and Global Markets business lines and offers products and services on a global scale to corporate and institutional clients, and collaborates with other global businesses to better serve our broad customer base.
The NPL ratio rose 17 bps in Q2 2026 to 1.02%, due to higher credit impaired loans, primarily driven by some single names, which were partially offset by total risk growth (+10%).
The cost of risk was up 22 bps compared to June 2025 to 0.29%, with higher provisions due to some single names and growing from a low base, as virtually no provisions were recorded in Q4 2024 and Q1 2025. Compared to March 2026, the ratio rose 6 bps, driven by higher provisions as a result of portfolio growth and some single names, particularly in Europe, the US and Brazil.
The NPL coverage ratio stood at 37%, with no material changes compared to March 2026.
Market risk
In Q2 2026, market risk was mainly shaped by market volatility stemming from the conflict in the Middle East. Volatility moderated as peace talks between the US and Iran began, though uncertainty remained regarding the possibility of inflation remaining persistently high.
Trading activity in CIB is focused on meeting our clients' needs. Its risk is measured in terms of daily VaR at 99% and originates mainly from possible movements in interest rates.
In Q2 2026, average VaR was EUR 18 million, slightly lower than in Q1 2026, amid somewhat lower market volatility, despite the persistence of some geopolitical uncertainty.
VaR figures remained low compared to the size of the balance sheet and the Group's activity, and continued to be primarily driven by interest rate risk.
Trading portfolios1. VaR by region
EUR million
20262025
Q2AverageLastAverage
Total18.0 14.1 18.2 
Europe13.7 10.7 15.7 
North America6.0 5.8 5.8 
South America7.2 8.0 8.5 
1. Activity in Santander Corporate & Investment Banking markets.
Trading portfolios1. VaR by market factor
EUR million
Q2 2026Min.Avg.Max.Last
VaR total12.6 18.0 28.5 14.1 
Diversification effect(12.7)(18.2)(25.1)(17.7)
Interest rate VaR12.1 15.7 21.0 13.5 
Equity VaR4.6 7.0 11.4 6.6 
FX VaR4.0 5.8 8.7 4.7 
Credit spreads VaR3.4 5.9 9.7 4.2 
Commodities VaR1.2 1.8 2.8 2.8 
1.Activity in Santander Corporate & Investment Banking markets.
Note: in the North America, South America and Asia portfolios, VaR corresponding to the credit spreads factor other than sovereign risk is not relevant and is included in the interest rate factor.
Trading portfolios1. VaR performance
 
EUR million
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1. Activity in Santander Corporate & Investment Banking markets.
24
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January - June 2026
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•Risk management
Structural and liquidity risk
Structural exchange rate risk
Grupo Santander's structural exchange rate risk mainly arises from foreign currency transactions related to permanent financial investments, their results and associated hedges.
During Q2 2026, the performance of the main currencies in which the Group operates generally appreciated against the euro, notably the Mexican peso, amid expectations that the central bank may have reached the end of its easing cycle with the 25 basis point cut in May to 6.50%.
Our dynamic management of this risk aims to limit the impact on the CET1 capital ratio from exchange rate movements. In Q2 2026, the coverage of the main currencies impacting this ratio remained close to 100%.
Regarding financial results, the exchange rate hedging strategy is tactical and dynamic, depending on our expectations of the evolution of the different currencies in the various countries where the Group operates.
Structural interest rate risk
Interest rate risk management aims to mitigate potential negative impacts on Santander, both in terms of net interest income and economic value of its equity, due to adverse fluctuations in interest rate curves in the various currencies in which the Group operates.
The Group measures interest rate risk through statistical models based on structural risk mitigation strategies using interest rate instruments, such as fixed-income bond portfolios and derivative instruments, to keep the risk profile within the risk appetite.
Our structural interest rate risk remained at comfortable levels during the period. Our structural debt portfolios performed well, in a context in which, although uncertainty around the evolution of the conflict in the Middle East persisted, pressure on interest rates was lower amid expectations of a resolution to the conflict between the US and Iran.
At an aggregate level, Santander maintains positive net interest income sensitivity to interest rate hikes and negative sensitivity in the same scenario for the economic value of its equity.
Liquidity risk
Liquidity risk is the risk of not having the necessary liquid financial resources available to meet our obligations as they come due. Losses can be caused by forced asset sales or margin impacts due to the mismatch between expected cash inflows and outflows.
Our strong liquidity position is based on a decentralized model, where each subsidiary is managed autonomously.
In Q2 2026, the Group maintained a comfortable position, with ratios well above regulatory limits, supported by a robust and diversified liquidity buffer.
The Group liquidity coverage ratio (Group LCR1) ended June 2026 at 155%, +4 pp compared to March 2026.
Operational risk
The operational risk profile remained stable in Q2 2026. However, the Group closely monitors the evolution of operational risks, focusing on operational resilience (technology, cyberrisk, suppliers and business continuity) and risks linked to transformation plans (including the use of new technologies), external fraud, the most significant legal processes and the impact of geopolitical risks on the current environment.
In Q2 2026, operational risk losses2 decreased double digits quarter-on-quarter, reflecting the impact of the provision for potential complaints related to motor finance dealer commissions in the UK recorded in Q1 2026. Legal proceedings continued to be the main driver of these losses, which were concentrated in the Retail business.



1.The Consolidated LCR ratio as at end June 2026 was 146%, comfortably exceeding internal and regulatory requirements. All LCR figures are provisional. For more information on the calculation of both the Group LCR and the Consolidated LCR, see the 'Liquidity and funding management' section of the 'Economic and financial review' chapter in the Annual report 2025 published on 24 February 2026.
2.Operational risk losses are provisional.
January - June 2026
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25
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•Santander share
The Santander share
Dividends and shareholder remuneration
In accordance with the 2025 shareholder remuneration policy, the bank paid a final cash dividend charged against 2025 results of EUR 12.50 cents per share in May 2026.
Additionally, the bank announced a second share buyback programme worth up to a maximum of EUR 5,030 million, started on 4 February 2026 and is currently underway. Of which:
•EUR 1,830 million corresponds to approximately 25% of the Group’s net reported profit in H2 2025, in line with the ordinary shareholder remuneration policy charged against 2025 results.
•The remaining EUR 3,200 million corresponds to an extraordinary buyback, equivalent to approximately 50% of the CET1 capital generated following completion of the sale of 49% of Santander Bank Polska to Erste Group in January 2026.
As at the date of publication of this report, approximately 80% of the aforementioned buyback programme had been executed.
As a result, total shareholder remuneration charged against 2025 results amounts to approximately EUR 7,030 million, comprising the interim dividend of EUR 11.50 cents per share paid in November 2025, the final cash dividend of EUR 12.50 cents per share paid in May 2026, the first share buyback programme of EUR 1,700 million (completed in December 2025) and EUR 1,830 million under the second share buyback programme (underway) corresponding to ordinary remuneration from 2025 results.
This is equivalent to approximately 50% of the Group's 2025 net reported profit, excluding non-cash, non-capital ratios impact items), split approximately 50% in cash dividends and 50% in share buybacks.
As announced on 25 February 2026, the board of directors intends to: i) apply an ordinary shareholder remuneration policy for 2026 to 2028 results that entails distributing approximately 50% of the Group’s underlying profit (excluding non-cash, non-capital ratios impact items), split approximately evenly between cash dividends and share buybacks for 2026 results; and ii) distribute any excess capital to shareholders at the end of the 2026-2028 period. From 2027 results, the ordinary shareholder remuneration policy is expected to comprise around 35% of the Group's underlying profit (on the same basis) in cash dividends and around 15% in share buybacks.
The execution of the ordinary shareholder remuneration policy and the distribution of any excess capital to shareholders at the end of the 2026-2028 period is subject to corporate and regulatory decisions and approvals.
Share price performance
Santander's shares are listed on five markets: on four exchanges in Spain (Madrid, Barcelona, Bilbao and Valencia), in the US (as ADRs), in the UK (as a CDI), in Mexico (Sistema Internacional de Cotizaciones) and in Poland.
In Q2 2026, we operated in an environment characterized by some volatility, driven by geopolitical tensions in the Middle East. However, at the end of the quarter, economic growth indicators were solid across our footprint and unemployment rates remained relatively low in general.
Despite this environment, equities performed well, with widespread increases. As of 30 June 2026, Santander’s share price had increased 20.0% in the year to date, outperforming both the sector as a whole and the broader European market.
In the banking sector, the Euro Stoxx Banks, the eurozone's main index, rose 11.6% year to date, while the DJ Stoxx Banks was up 12.5% and the MSCI World Banks +10.4%. The other main indices also closed higher (Ibex 35 +12.5% and DJ Stoxx 50 +10.1%).
Share price
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START 31/12/2025
END 30/06/2026
€10.070€12.084
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MAXIMUM 30/06/2026
MINIMUM 23/03/2026
€12.084€8.938

Comparative share performance
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26
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January - June 2026
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•Santander share
Market capitalization and trading
As at 30 June 2026, Santander’s market capitalization of EUR 177,506 million was the largest in the eurozone and the 14th largest in the world among financial institutions.
The share’s weighting in the Stoxx Europe 600 Banks index was 9.0% and 14.6% in the Euro Stoxx Banks. In the domestic market, its weight in the Ibex 35 was 17.8% as at 30 June 2026.
A total of 3,663 million shares were traded in the quarter for an effective value of EUR 38,117 million and an annualized liquidity ratio of 50%.
The average daily trading volume was 29.3 million shares with an effective value of EUR 305 million.
Shareholder base
The total number of Santander shareholders as at 30 June 2026 was 3,508,619, of which 2,846,326 were European (71.25% of the capital stock) and 649,332 from the Americas (27.33% of the capital stock).
Excluding the board, which holds 1.34% of the bank’s capital stock, retail shareholders accounted for 32.27% and institutional shareholders accounted for 66.39%.



Share capital distribution by geographic area
30 June 2026
The AmericasEuropeOther
27.33%71.25%1.42%
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Source: data obtained from the shareholder registers of Banco Santander.

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#1
Bank in the eurozone by market capitalization
EUR177,506million
The Santander share
30 June 2026
Shares and trading data
Shares (number)14,689,319,502 
Average daily turnover (number of shares)29,306,828 
Share liquidity (%)50
(Annualized number of shares traded during the period / number of shares)
Stock market indicators
Price / Tangible book value per share (X)1.91 
Free float (%)97.49
.

Share capital distribution by type of shareholder
30 June 2026
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Institutions
66.39%
Board *
1.34%
Retail
32.27%
* Shares owned or represented by directors.


January - June 2026
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Index

Financial information by segment
Description of segments
We base segment reporting on financial information presented to the chief operating decision maker, which excludes certain statutory results items that distort year-on-year comparisons and are not considered for management reporting. This financial information (underlying basis) is computed by adjusting reported results for the effects of certain gains and losses (e.g. capital gains, write-downs, impairment of goodwill, etc.). These gains and losses are items that management and investors ordinarily identify and consider separately to better understand the underlying trends in the business.
The Group has aligned the information in this chapter with the underlying information used internally for management reporting and with that presented in the Group's other public documents.
Santander's executive committee has been selected to be its chief operating decision maker. The Group's operating segments reflect its organizational and managerial structures. The Group's executive committee reviews internal reporting based on these segments to assess performance and allocate resources.
The segments are split by global business and by country in which profits are earned. We prepare the financial information by aggregating the figures for Santander’s global businesses and countries, relating it to both the accounting data of the business units integrated in each segment and that provided by management information systems. The same general principles as those used in the Group are applied.
Main changes to the composition of Santander's segments in 2026
On 10 February 2026, the Group announced a series of changes to its reporting structure, effective from Q1 2026. These changes did not affect the Group’s reported profit attributable to the parent, nor the targets we communicated to the market during the Q4 2025 results presentation. For further information about these changes, see ‘Significant events in the period’ section of the Q1 2026 Financial report.
In addition to these changes, a number of modifications to the reporting structure were also communicated that only affect the Group’s primary and secondary segments, as follows:
Reporting of the Cards business within Retail & Commercial Banking (Retail)
Given that our payments platform strategy is now largely established, we are positioning Payments, renamed Payment Solutions, as the Group’s payments platform business.
In this context, from 1 January 2026, the income statement and balance sheet items relating to the Cards business have been reclassified to Retail (previously recorded in Payments), to better align reporting with the management structure in these businesses in 2026.
The Group’s card processing platform remains in Payment Solutions and charges market-based fees to the global businesses for card processing, valued at market prices.
RoTE Spain
The Santander Spain secondary segment does not have its own accounting tangible equity since it is booked under Banco Santander,
S.A. with other units such as the Corporate Centre. For this reason, a theoretical tangible equity is allocated to the segment.
In this context, the methodology for allocating such tangible equity to Spain has been updated to increase accuracy, taking into account: i) the amount required to reach a 13% CET1 ratio; and ii) the allocation of deductions and other capital adjustments (add-ons).
Other changes within the primary segments
In addition to the change in the Payments business previously described, two minor adjustments have been introduced to the primary segments: i) the Digital Consumer Bank (Consumer) business has been renamed Openbank; and ii) Wealth Management & Insurance has been reorganized into two business lines: Private Banking, which comprises the corporate private banking unit and International Private Banking in the US, Switzerland and the UAE; and Insurance & Asset Management Solutions, which brings together the insurance business and liquid and illiquid asset management activities, and includes the investment platforms and holdings that complement the traditional Wealth business. These changes do not have any impact on the reported figures at the Group or primary segment levels.
Composition of Santander's segments
Taking into account all of the changes detailed above, from 2026 the primary and secondary segments are structured as follows:
Primary segments
This primary level of segmentation, comprises six reportable segments: five global businesses plus the Corporate Centre.
Retail & Commercial Banking (Retail): area that integrates the retail banking and commercial banking businesses (individuals, SMEs and corporates), except private banking clients and business originated in the consumer finance businesses. Detailed financial information is provided on Spain (Retail Spain), the UK (Retail UK), Mexico (Retail Mexico) and Brazil (Retail Brazil), which represent most of the total Retail business.
Openbank, previously known as Digital Consumer Bank (Consumer): comprises business originated by consumer finance companies, including our digital bank (formerly Openbank), Open Digital Services (ODS) and our retail business in the US. Detailed financial information is provided on Europe (Openbank Europe) and the US (Openbank US).
Corporate & Investment Banking (CIB): business which includes the Global Transaction Banking, Global Banking (Global Debt Financing and Corporate Finance) and Global Markets business lines. It offers products and services on a global scale to corporate and institutional clients and collaborates with other global businesses to better serve our broad customer base.
Wealth Management & Insurance (Wealth): comprises two business lines: i) Private Banking, which includes the corporate private banking unit and international private banking in the US, Switzerland and the UAE; and ii) Insurance & Asset Management Solutions, which brings together the insurance business and liquid and illiquid asset management activities and includes the investment platforms and holdings that complement the traditional Wealth business.
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Index

Payment Solutions (Payments): brings together the Group’s digital payment solutions and provides global technological solutions to Group entities and new customers in the open market. It comprises Getnet, Getnet Platforms and Ebury.
Corporate Centre: includes the centralized activities relating to equity stakes in financial companies, financial management of the structural exchange rate position, assumed within the sphere of the Group’s asset and liability committee, as well as management of liquidity and of shareholders’ equity via issuances.
As the Group’s holding entity, this area manages all capital and reserves and allocation of capital and liquidity to the other businesses. It also incorporates goodwill impairments but not the costs related to the Group’s central services (charged to the areas), except for corporate and institutional expenses related to the Group’s functioning.
Secondary segments
This secondary level includes our main geographical units and the Corporate Centre, as described in the primary segments.
Detailed financial information is provided on Spain, the UK, Portugal, Openbank Europe (previously referred to as DCB Europe, which includes all consumer business, our digital bank in Europe and ODS), the US, Mexico, Brazil, Chile and Argentina.
Information is also provided for the 'Rest of the Group', the grouping which brings together everything that is not included in the aforementioned geographical units or the Corporate Centre.






The businesses included in each of the segments in this report and the accounting principles under which their results are presented here may differ from the businesses included and accounting principles applied in the financial information separately prepared and disclosed by our subsidiaries (some of which are publicly listed) which in name or geographical description may seem to correspond to the business areas covered in this report. Accordingly, the results and trends shown for our business areas in this document may differ materially from those of such subsidiaries.
The Group's underlying income statement records the results related to the business subject to the Poland disposal for all periods in 2025, the capital gain from the completion of the Poland disposal in Q1 2026 and M&A-related restructuring costs in Q2 2026 associated with the integration of TSB under a single line item, 'non-recurring items'. The impacts recorded in this line are therefore excluded from the Group's underlying profit. Consequently, the global businesses, which are reported only on an underlying basis in accordance with IFRS 8, also exclude these non-recurring items. The underlying ratios, management metrics and business volumes do not include the activity affected by the Poland disposal.
Additionally, both the balance sheets and income statements of the Retail global business, Retail UK and the UK secondary segment include TSB from May 2026.
On the other hand, the results of our segments presented below include the impact of foreign exchange rate fluctuations. However, for a better understanding of the changes in the performance of our primary and secondary segments, we also provide and discuss the year-on-year changes to our results excluding such exchange rate impacts (i.e. in constant euros), except for Argentina, and any grouping which includes it, where the variations in constant euros have been calculated considering the Argentine peso exchange rate on the last working day for each of the periods presented. For further information, see methodology in the 'Alternative performance measures' section in this report.
Lastly, certain figures contained in this report, have been subject to rounding to enhance their presentation. Accordingly, in certain instances, the sum of the numbers in a column or a row in tables contained in this report may not conform exactly to the total figure given for that column or row.

January - June 2026
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Index

January-June 2026
Main items of the underlying income statement
EUR million
Primary segmentsNet interest
income		Net fee
income		Total
income		Net operating
income		Profit
before tax		Underlying profit attributable to the parent
Retail & Commercial Banking14,159 3,329 17,135 10,188 5,861 4,124 
Openbank5,610 714 6,535 3,817 1,405 827 
Corporate & Investment Banking2,543 1,353 4,779 2,831 2,379 1,742 
Wealth Management & Insurance655 898 2,093 1,360 1,356 1,083 
Payment Solutions82 563 771 114 92 78 
Corporate Centre(338)(6)(466)(673)(746)(525)
TOTAL GROUP22,711 6,851 30,847 17,636 10,347 7,328 
Secondary segments
Spain3,860 1,588 6,380 4,238 3,529 2,534 
UK2,687 209 2,713 1,268 987 725 
Portugal672 266 937 672 631 471 
Openbank Europe2,415 385 2,989 1,619 616 253 
US2,909 755 4,004 2,171 1,274 989 
Mexico2,502 804 3,412 2,024 1,280 897 
Brazil5,067 1,615 6,595 3,926 1,457 1,093 
Chile1,093 306 1,538 1,081 781 469 
Argentina1,162 452 1,355 837 221 194 
Corporate Centre(338)(6)(466)(673)(746)(525)
Rest of the Group682 476 1,391 474 316 229 
TOTAL GROUP22,711 6,851 30,847 17,636 10,347 7,328 
Underlying profit attributable to the parent distribution1
H1 2026

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1. As a % of operating areas. Excluding the Corporate Centre.
Underlying profit attributable to the parent. H1 2026
EUR million. % change YoY
Retail
Openbank
CIB
Wealth
Payments
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Var
Var2
+13 %+12 %
-21 %-19 %
+18 %+17 %
+19 %+19 %
+400 %+297 %
2. Changes in constant euros.
30
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January - June 2026
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Index

January-June 2025
Main items of the underlying income statement
EUR million
Primary segmentsNet interest
income		Net fee
income		Total
income		Net operating
income		Profit
before tax		Underlying profit attributable to the parent
Retail & Commercial Banking13,357 3,057 16,202 9,167 5,283 3,653 
Openbank5,504 681 6,425 3,565 1,456 1,042 
Corporate & Investment Banking1,857 1,268 4,119 2,279 2,188 1,472 
Wealth Management & Insurance671 813 1,930 1,229 1,196 906 
Payment Solutions80 510 641 41 22 16 
Corporate Centre(232)(16)(353)(567)(807)(713)
TOTAL GROUP21,237 6,311 28,966 15,715 9,338 6,377 
Secondary segments
Spain3,585 1,503 6,118 3,916 3,232 2,258 
UK2,543 166 2,492 974 762 560 
Portugal684 255 989 722 730 525 
Openbank Europe2,266 372 2,827 1,356 727 396 
US2,949 678 3,927 1,959 904 839 
Mexico2,238 689 3,010 1,700 1,093 794 
Brazil4,740 1,549 6,309 3,841 1,551 996 
Chile1,002 297 1,410 921 623 369 
Argentina939 390 1,145 624 393 262 
Corporate Centre(232)(16)(353)(567)(807)(713)
Rest of the Group523 428 1,092 269 129 91 
TOTAL GROUP21,237 6,311 28,966 15,715 9,338 6,377 


January - June 2026
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Index


RetailUnderlying attributable profit
EUR 4,124 mn
→ We continued to drive our ONE Transformation programme to support our vision of becoming a digital bank with branches, through the implementation of a common operating model and the rollout of our global technology platform.
→ Loans increased 9% in constant euros year-on-year (+2% ex. TSB), mainly driven by mortgages. In constant euros, deposits rose 13% (+6% ex. TSB), with positive dynamics in most countries, and mutual funds grew 18%.
→ Underlying attributable profit reached EUR 4,124 million, up 13% year-on-year in euros and +12% in constant euros (+10% ex. TSB), driven by total income (both in net interest income as well as net fee income) and a strong cost reduction, resulting from the implementation of our common operating model.

Strategy
In Q2 2026, we continued our business transformation, in line with our vision of being a digital bank with branches, which combine leading technology with close, expert advice for our customers. To achieve this, we continue to successfully execute on our strategic priorities:
•Transformation of our operating model based on three pillars:
•End-to-end digitalization. We continued to drive product digitalization and optimize customer journeys, improving the share of products and services that are available digitally by 7 pp year-on-year to 73%, resulting in a 21% increase year-on-year in digital sales. The launch of the global app has enabled us to deliver a more consistent and higher-quality experience across digital channels. In addition, we continued to roll out our new branch model and Work Cafés, with new openings in Brazil, the UK and Portugal in the quarter.
•Automation and simplification. We continued to simplify and automate processes at scale while promoting leaner and more agile structures. This enabled us to reduce the number of non-commercial FTEs per million customers by 19% year-on-year, freeing up capacity for commercial activities and higher value-added customer service, thereby improving customer experience and lowering the cost per active customer 6% year-on-year.
•Global Technology Platform. We remain focused on the rollout of common technology platforms. Gravity, our back-end technology, has been fully implemented in Spain, Mexico and Chile, enabling us to reduce transaction costs and improve response times, and is also technically ready for deployment in Brazil in 2026. The new global app is now available in Spain, Mexico, Brazil and Chile, and our assisted channel solution is operational in more than half of the Group's branches and across contact centres in Mexico, enhancing productivity and sales. Our new customer interaction platform, which was already available in Brazil, the UK, Argentina, Chile and Mexico, is now technically
ready for rollout in Spain. This platform enables effective hyper-personalization across all channels and segments, increasing the sales conversion ratio.
•Transformation of the business model by remaining focused on value creation and positioning the customer at the centre of our management through:
•Customer relationships. We are providing a simpler value proposition tailored to our key customer segments. In Spain, for example, we are significantly enhancing SME profitability through improvements to Santander Growth, which leverages advanced analytics to identify high-growth companies and provide them with tailored solutions supported by specialized teams. We are rolling out the model across Brazil, Mexico, the UK, Chile and Portugal. In Spain, we also launched a new Teens App, designed for teenagers taking their first financial steps, with access to exclusive offers. In Mexico, we strengthened our commercial offering for individuals, entrepreneurs and SMEs with a comprehensive package that combines lending, digital banking and international transfers with better conditions.
•Customer experience. We continue to integrate the best digital products with a new branch model redefined as community hubs, and we are using advanced hyper-personalization tools enabling us to improve our customer experience.
•Structural efficiency and profitability improvement. The transformation of our operating and business model continues to drive structural efficiency improvements and commercial capacity, which, together with prudent risk management and strict capital allocation, supports our profitable growth. We completed the acquisition of TSB in the UK in Q2 2026 and we expect to complete the Webster acquisition in the US this year. In the coming months, we will continue to work to ensure the successful integration of both entities into the Group.
Retail. Customers. June 2026
Thousands and year-on-year change
Total Retail
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Total customers154,51115,23526,92722,23275,577
+7%0%+20%+3%+6%
Active customers79,6339,25015,90611,58333,771
+6%+4%+18%+5%+2%
32
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Index

Business performance
Gross loans and advances to customers, excluding reverse repos, increased 11% year-on-year. In constant euros, they grew 9%. This comparison was favoured by the TSB acquisition, whose loan book mostly comprises mortgages. Excluding TSB, loans increased 2% in constant euros, mainly driven by growth in mortgages to individuals, with the following breakdown by segment:
•In individuals, the mortgage portfolio grew in all countries, but particularly in the UK, Portugal, Brazil and Spain. Personal loans also increased across our footprint, except in Brazil, which reflects our capital optimization strategy and macro environment in the country. Card volumes increased in general, especially in Select customers in Brazil.
•SME loans were affected by lower volumes in Spain and the UK, with positive dynamics across the rest of our footprint. Commercial loans increased mainly driven by Brazil and the UK, which more than offset decreases in the US and Mexico.
The year-on-year performance of customer funds also was favoured by the incorporation of TSB's deposits (TSB does not have mutual funds), with 15% year-on-year growth in customer deposits, excluding repos and +13% in constant euros. Excluding TSB and in constant euros:
•Customer deposits, excluding repos grew 6%, largely due to a good performance in Spain and the UK. There was a 12% increase in time deposits with positive performances across the board except in the US and Argentina, while demand deposits rose 4%, increasing in most countries.
•Mutual funds grew 18% year-on-year, rising across most of our footprint. Overall, customer funds grew 8%.
Retail. Business performance. June 2026
EUR billion and YoY % change in constant euros
655
+9%
Ex. TSB: +2%
810
+14%
Ex. TSB: +8%
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Others
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Ex. TSB: +4%
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Ex. TSB: +7%
Gross loans and advances to customers excl. reverse reposCustomer deposits excl.
repos + mutual funds
Results
Underlying attributable profit in H1 2026 was EUR 4,124 million, 13% higher year-on-year. This comparison was slightly favoured by the TSB acquisition, with around 1-2 pp contributions across P&L lines. In constant euros profit increased 12%, as follows:
•Total income increased 4% driven mainly by positive performances in net interest income and net fee income.
Net interest income increased 4% year-on-year, with positive performances in most countries, driven by higher volumes and our active balance sheet management, and slightly favoured by the TSB acquisition.
Our more targeted products and high value-added services offering, especially to Select segments, contributed to 6% net fee income growth year-on-year, particularly in transactional, FX, insurance and mutual fund fees. By country, there were notable increases in Mexico, Argentina, the UK and Spain.
Retail. Total income. H1 2026
EUR million and YoY % change in constant euros
spaina.jpg
uka.jpg
mexicoa.jpg
brazila.jpg
Others
chart-d0909f5331b8418f8b1a.jpg
VarEx. TSB
+6%
+14%+4%
+4%
-2%
+2%
    
 Retail
EUR 17,135 mn
+4%
+2%
•Total costs decreased 3% year-on-year, -8% in real terms, reflecting our transformation efforts through organizational simplification, process automation and the rollout of our global platform and a lower impact from asset impairment and operational risk charges. The efficiency ratio improved to 40.5%.
•Net loan-loss provisions grew 6% year-on-year, mainly in Argentina, reflecting sector-wide trends in the country. Excluding Argentina, provisions declined 4%, with positive performances in Spain and Brazil. Cost of risk was 1.19% (+6 bps year-on-year) and the NPL ratio improved to 3.05%, the latter favoured by the TSB acquisition.
Overall, RoTE in H1 2026 was 17.1%.
Compared to Q1 2026, the P&L was favoured by TSB. Excluding it, profit increased 2% in constant euros, driven by net interest income and net fee income, which more than offset greater provisions related to balance sheet optimization initiatives in Spain and the UK, and higher restructuring charges related to transformation.
Retail. Underlying income statement
EUR million and % change
/ Q1'26/ H1'25
Q2'26%excl. FXH1'26%excl. FX
Ex. TSBEx. TSB
Total income8,851 +7+5+317,135 +6+4+2
Total costs-3,594+7+5+2-6,948-1-3-5
Net operating income5,258+7+5+310,188+11+9+8
LLPs-2,078+7+4+4-4,021+9+6+5
PBT2,976+3+205,861+11+10+8
Underlying attrib. profit2,115+5+5+24,124+13+12+10
January - June 2026
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spaina.jpg
Retail Spain
Profit before tax
EUR 2,229 mn
Commercial activity and business performance
Commercial activity remained strong in the quarter as we continued to gain market share in payrolls, pensions, cards and active Bizum users.
Gross loans and advances to customers, excluding reverse repos, increased 1% year-on-year as the higher mortgages and personal loans in Select, more than offset a decrease in SMEs as a result of our active risk management, balance sheet optimization initiatives and ICO loan maturities.
Customer deposits, excluding repos, grew 6% year-on-year, mainly due to demand deposits driven by our value proposition for Select customers which supports deposit growth and improves our funding mix. Mutual funds improved 17%. As a result, customer funds rose 8%.
Results
Profit before tax in H1 2026 reached EUR 2,229 million, 33% higher than in H1 2025. By line:
•Total income was 6% higher, with increases in net interest income, driven by balance sheet management and lower cost of deposits, net fee income, driven by strong momentum in FX and insurance fees, and gains on financial transactions (valuation of stakes).
•Total costs decreased 8%, benefitting from transformation initiatives and a lower impact from operational risk and asset impairment charges. The efficiency ratio improved 4.9 pp to 31.3%.
•Net loan-loss provisions declined 45%, driven by balance sheet optimization initiatives and credit quality improvement.
In the quarter, net operating income increased 4% driven by strong revenue, with a positive net interest income performance (active balance sheet management and volumes growth), and better costs. However, the good net operating income performance was not reflected in profit before tax due to higher provisions, after balance sheet optimization initiatives in Q1, and higher transformation-related charges.
Retail Spain. Underlying income statement
EUR million and % change
Q2'26/ Q1'26H1'26/ H1'25
Total income1,949 +23,857 +6
Total costs-598 -2-1,207 -8
Net operating income1,351 +42,650 +14
LLPs-187 +59-304 -45
PBT1,068 -82,229 +33
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Retail UK
Profit before tax
EUR 938 mn
Commercial activity and business performance
In Q2 2026, we completed the TSB acquisition, becoming the third largest bank in the country in terms of individual current account volumes and the fourth largest by mortgage volumes.
Gross loans and advances to customers, excluding reverse repos, increased 22% year-on-year. In constant euros, they also increased 22%. This comparison was favoured by the incorporation of TSB in May 2026. Excluding TSB, loans increased 4% in constant euros driven by positive trends in mortgage originations since H2 2025, as well as a pickup in new business volumes in corporates.
Customer deposits, excluding repos, increased 26% year-on-year. In constant euros, they also grew 26%, similarly favoured by the incorporation of TSB's deposits. Excluding TSB, deposits increased 6% in constant euros, driven by growth in time deposits from individuals and demand deposits from corporates. Mutual funds rose 31% in constant euros. As a result, customer funds excluding TSB improved 7% in constant euros.
Results
Profit before tax in H1 2026 reached EUR 938 million, 36% higher than in H1 2025. In constant euros, it increased 40%. Excluding TSB, profit before tax was 28% higher in constant euros, by line:
•Total income rose 4%, driven by higher transactional fees, net interest income, supported by volumes growth, and gains on financial transactions, following weaker hedging results in H1 2025.
•Total costs fell 10%, boosted by process automation, our simplification efforts and lower asset impairment charges. As a result, net operating income grew 28%, with a significant improvement in the efficiency ratio.
•Net loan-loss provisions increased as a result of model updates and balance sheet optimization initiatives, but remained at very low levels.
Compared to Q1 2026, excluding TSB, profit before tax increased 6% in constant euros, driven by higher net fee income, gains on financial transactions and lower costs from transformation savings, which amply offset an increase in provisions as a result of balance sheet optimization initiatives.
Retail UK. Underlying income statement
EUR million and % change
/ Q1'26/ H1'25
Q2'26%excl. FXH1'26%excl. FX
Ex. TSBEx. TSB
Total income1,452 +23+22+32,635 +11+14+4
Total costs-763+17+17-3-1,416-4-1-10
Net operating income689+30+30+121,219+35+39+28
LLPs-115+52+52+32-191+69+74+60
PBT522+25+25+6938+36+40+28
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Retail Mexico
Profit before tax
EUR 832 mn
Commercial activity and business performance
In the quarter, we continued to make great strides in the transformation of our operating model, driving digital adoption (76% of our active customers now use digital channels) and strengthening our commercial offering for individuals, entrepreneurs and SMEs.
Gross loans and advances to customers, excluding reverse repos, increased 13% year-on-year. In constant euros, they grew 1% driven by higher mortgages and personal loans which more than offset a decline in the corporate portfolio in line with our strategy.
Customer deposits, excluding repos, rose 17% year-on-year. In constant euros, they grew 5% driven by both demand and time deposits. We are targeting mutual fund growth, resulting in an 11% increase in constant euros. As a result, customer funds rose 7% in constant euros.
Results
Profit before tax in H1 2026 reached EUR 832 million, 11% higher than in H1 2025. In constant euros, it increased 4%, as follows:
•Total income rose 4%, driven mainly by net fee income, particularly in transactional and insurance fees, reflecting the improvement in our value proposition and greater customer transactionality, and higher gains on financial transactions from FX. Net interest income increased slightly, supported by a lower cost of deposits in a lower interest rate environment.
•Total costs decreased 3%, driven by savings from our simplification and automation initiatives, helping to sustain the business’s recurring profitability. As a result, net operating income grew 9% and the efficiency ratio improved 2.8 pp to 40.1%.
•Net loan-loss provisions increased 14%, in part due to higher lending activity and model updates.
Compared to Q1 2026, profit before tax grew 3% in constant euros, driven by positive performances in net interest income, due to our active balance sheet management, and net fee income (insurance and transactional fees), with slightly lower provisions following model updates in Q1.
Retail Mexico. Underlying income statement
EUR million and % change
/ Q1'26/ H1'25
Q2'26%excl. FXH1'26%excl. FX
Total income1,299 +4+22,552 +11+4
Total costs-523 +5+3-1,022 +4-3
Net operating income775 +3+11,529 +17+9
LLPs-341 +10-679 +22+14
PBT426 +5+3832 +11+4
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Retail Brazil
Profit before tax
EUR 634 mn
Commercial activity and business performance
In Q2 2026, our business strategy remained focused on expanding the affluent and corporate segments by offering a personalized and global experience and providing an integrated multi-channel experience and a simplified product offering to the mass market to reinforce engagement and customer satisfaction.
Gross loans and advances to customers, excluding reverse repos, increased 12% year-on-year. In constant euros, they rose 3%, driven by strong momentum in all products except personal loans in the mass segment, in line with our strategy focused on profitable growth and prudent risk management.
Customer deposits, excluding repos, increased 21% year-on-year. In constant euros, they grew 12%, mainly on the back of growth in time deposits in Select, reflecting the increased engagement and primacy achieved in the affluent segments. Mutual funds grew 25% year-on-year in constant euros. As a result, customer funds rose 15% in constant euros.
Results
Profit before tax in H1 2026 was EUR 634 million, 6% lower than in H1 2025. In constant euros, it decreased 10%, by line:
•Total income declined 2%, impacted by lower net fee income, especially in insurance from high levels in H1 2025, and a decline in gains on financial transactions due to lower capital market-related activity in corporates. Net interest income was flat, as higher volumes in the affluent segment offset a lower result in mass market segment, in line with our strategy.
•Total costs increased 1%, but were down 3% in real terms, reflecting our efforts in simplification, automation and digitalization.
•Net loan-loss provisions decreased 4%, reflecting our prudent risk management and the shift in the portfolio mix.
Compared to Q1 2026, profit before tax decreased in constant euros, as growth in net interest income, driven by our active balance sheet management, and insurance fees did not offset lower gains on financial transactions, higher costs and an increase in provisions impacted by the macro environment and single names in corporates.
Retail Brazil. Underlying income statement
EUR million and % change
/ Q1'26/ H1'25
Q2'26%excl. FXH1'26%excl. FX
Total income2,423 +504,737 +3-2
Total costs-1,081 +8+3-2,085 +6+1
Net operating income1,343 +3-22,652 0-4
LLPs-1,032 +8+3-1,988 +1-4
PBT285 -18-23634 -6-10
January - June 2026
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OpenbankUnderlying attributable profit
EUR 827 mn
→ Our priority is to become a leading digital bank that combines advanced technology with a personal and human touch, placing customers at the centre of everything we do and maximizing profitability and long-term shareholder value.
→ Loans rose 3% year-on-year in constant euros, +6% in auto, with solid trends across our footprint. Deposits increased 3% in constant euros, driven by strong growth in the Americas, supported by our digital bank, in line with our strategy to optimize funding costs and reduce net interest income volatility across the cycle.
→ Underlying attributable profit was EUR 827 million in H1 2026, heavily impacted by additional provisions for potential complaints related to motor finance dealer commissions in the UK recorded in the period. Excluding it, profit before tax rose 15% year-on-year in constant euros, reaching EUR 1,651 million, underpinned by improvements in net interest income, net fee income and total costs.

Strategy
Openbank brings together Santander's mobility finance and consumer banking operations under a single global business, supported by our global digital banking platform, which is live in the US, Spain, Mexico and Germany. The business has a strong foundation for growth, operating in 26 countries in Europe and the Americas and serving 28 million customers.

Our vision is to evolve our business from a primarily monoline lending model to a leading, digital banking model that combines advanced technology with a personal, human touch, placing customers at the heart of our management.

To navigate an increasingly competitive environment and meet evolving customer needs while delivering on our vision, we are transforming Openbank into a more global, integrated, scalable and efficient business, focusing on advancing our strategic priorities:

•Consolidate our leadership in mobility finance. We are optimizing the business to maximize profitability and capital efficiency, while continuing to deepen and expand strategic relationships with global OEMs and key industry players. At the same time, we are expanding beyond traditional auto lending into segments such as operational leasing to better serve our customers and partners while supporting growth.
In Europe, we continued to develop our leasing platform this quarter, with new features to enhance customer experience and drive efficiency, including a vehicle replacement service, greater SME digital functionalities and the expansion of our cross-border vehicle remarketing capabilities into the Netherlands and Belgium.
In the US, we further strengthened our capabilities across the full credit spectrum, while maintaining a disciplined approach to portfolio management. In the quarter, we implemented a new pricing model and adjusted our longer-term financing offering in line with broader market practices. In Latin America, we maintained our leadership in new and used vehicle financing across our footprint, backed by strong commercial momentum.
•Grow our digital banking business. We are building scale in our core markets, strengthening our value proposition to become our customers’ primary bank, driving engagement and loyalty while laying the foundations to expand into new markets.
In the US, our digital bank maintained its solid performance in new customers and deposits captured, supported by our partnership with Verizon. We also refined the customer experience through improvements in usability, transparency, speed and reliability.
In Mexico, we delivered a strong performance, surpassing 1.2 million customers, while further reinforcing our offering through initiatives such as Plan Personal de Pagos, which enables customers
to split purchases into instalments. We also launched a new pricing functionality for credit cards, which enables us to tailor our offering to customers' profiles.
In Europe, we maintained strong customer growth across our markets, while broadening our proposition through several initiatives. In Spain, we launched a new onboarding experience and in Germany, launched an improved 'Best Giro' current account with new features and a new 'Best Card' which strengthens our payments and travel offering.
In parallel, we continue to develop Openbank Pay, our checkout lending and embedded finance engine, incorporating new partners and countries to drive customer growth with low acquisition costs. In the quarter, we upgraded customer journeys on Amazon Spain, driving higher conversion rates and helping us reach more than 2.6 million customers.
•Leverage AI and automation capabilities to accelerate our transformation and growth. In the quarter, we further embedded new technologies across our processes to improve productivity and personalization and reduce cost to serve across our footprint. For instance, in the US, we leveraged increased automation to enhance the decision-making process across our dealer network.
•As part of our focus on profitable growth, we continued to optimize deposit gathering and manage interest rate sensitivity through hedging and repricing actions. We maintained a disciplined approach to balance sheet management, focusing on risk and capital while supporting sustainable growth.
Finally, we completed the merger of Santander Consumer Finance, S.A. and Open Bank, S.A. in Europe, creating a single legal entity under the Openbank brand and supporting the transformation and simplification of our business.
Openbank. Total customers
Millions
+7%
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Business performance
New lending was 8% higher year-on-year in constant euros, on the back of good performances in Europe, the US and Brazil. We continued to focus on balancing profitability and prudent risk management in an environment marked by some volatility and geopolitical uncertainty.
Gross loans and advances to customers, excluding reverse repos, grew 4% year-on-year. In constant euros, they rose 3%, supported by auto (+6%), with a good performance particularly in Europe, despite a weak start to the year for the market. There were double-digit increases across most of our countries in Latin America.
Our EUR 12.3 billion leasing portfolio contracted 18% year-on-year in constant euros, as solid growth in Europe was more than offset by a weaker performance in the US, following the discontinuation of our partnership with Stellantis and lower demand for electric vehicles following the end of fiscal incentives.
Our access to wholesale funding markets remained strong and diversified. Customer deposits, excluding repos, increased 4% year-on-year. In constant euros, they rose 3%, reflecting our focus on deposit gathering, supported by our digital bank. Including mutual funds, customer funds were up 4% in constant euros.
Openbank. Business. June 2026
EUR billion and YoY % change in constant euros
220
+3%
145
+4%

Openbank Europe
Openbank US
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Openbank Europe
Openbank US
chart-f602bc53a47e469f808a.jpg
Gross loans and advances to customers excl. reverse reposCustomer deposits excl.
repos + mutual funds
Openbank. Leasing portfolio. June 2026
EUR billion and YoY % change in constant euros
Total leasing
12
-18%
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Results
In H1 2026, underlying attributable profit stood at EUR 827 million, 21% lower year-on-year, due to the aforementioned additional provisions in the UK and a normalized tax rate. In constant euros, profit decreased 19%, as follows:
•Total income grew 4%, supported by solid net interest income and net fee income trends, which more than offset softer dynamics in other income.
Net interest income increased 4%, mainly driven by disciplined margin management and higher volumes. Good performance across most of our footprint, with notable contributions from Europe and South America.
Net fee income rose 6%, underpinned by broad-based growth, but particularly in Brazil, benefitting from portfolio expansion and higher insurance activity, and in Europe, driven by a pickup in new business trends.
Other income decreased, mainly due to leasing, as growth in Europe, supported by improvements in the portfolio mix and new business trends, did not fully offset a weaker performance in the US, impacted by lower residual values and volumes.
Openbank. Total income. H1 2026
EUR million and YoY % change in constant euros
Openbank Europe
Openbank US
Other
chart-31416f43933242e7a57a.jpg
Var
+6 %
-2 %
+14 %
•Total costs fell 3%, backed by our efficiency and transformation efforts, primarily in Europe and the US, as well as lower operational risk (including those linked to the CHF portfolio) and asset impairment charges. As a result, net operating income grew 9% and efficiency improved 2.9 pp to 41.6%.
•Net loan-loss provisions rose 3%, in line with credit growth, with a good performance in the US that partially offset increases in Europe, Brazil and Argentina. Credit quality remained under control, with the NPL ratio at 5.61% and cost of risk stable at 2.09%.
•Other gains (losses) and provisions posted a higher loss, due to additional provisions for potential complaints related to motor finance dealer commissions in the UK recorded this year and higher charges related to our transformation in Europe.
•Excluding said charges in the UK, profit before tax increased 15% year-on-year.
•The effective tax rate normalized following the end of fiscal benefits for electric vehicles in the US in 2025.
RoTE stood at 7.7% in H1 2026, 9.7% excluding the additional provisions in the UK.
Compared to Q1 2026, underlying attributable profit was favoured by lower provisions in the UK. Excluding these charges, profit was up 28% in constant euros, supported by an improvement in leasing in the US and Europe, broad-based cost savings, lower LLPs in the US and a decline in transformation charges.
Openbank. Underlying income statement
EUR million and % change
/ Q1'26/ H1'25
Q2'26%excl. FXH1'26%excl. FX
Total income3,276 006,535 +2+4
Total costs-1,324 -5-6-2,718 -5-3
Net operating income1,952 +5+43,817 +7+9
LLPs-1,029 -2-3-2,084 0+3
PBT866 +60+591,405 -3-2
Underlying attrib. profit537 +85+82827 -21-19
January - June 2026
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OBE
Openbank Europe
Profit before tax
EUR 616 mn
Commercial activity and business performance
In a market that saw a softer start to the year in new car registrations, we grew new business volumes 8% year-on-year in constant euros, while maintaining our focus on profitability.
The stock of gross loans and advances to customers, excluding reverse repos, increased 2% year-on-year. In constant euros, it also rose 2%, underpinned by higher auto balances.
Customer deposits, excluding repos, contracted 1% year-on-year. They fell 2% in constant euros, reflecting our focus on prioritizing profitability in a competitive environment. Mutual funds expanded 20% in constant euros, from low levels.
Results
In H1 2026, profit before tax stood at EUR 616 million, 15% lower year-on-year, impacted by the additional provisions in the UK. In constant euros, profit before tax declined 16%, as follows:
•Total income increased 6%, with strong net interest income (+6%), underpinned by good margin management and higher volumes. Net fee income (+4%) and leasing income also supported growth, benefitting from a pickup in new business.
•Total costs decreased 7%, mainly backed by savings from our efficiency and transformation efforts, as well as lower operational risk charges, including those linked to the CHF portfolio.
•Net loan-loss provisions rose 11%, partly reflecting a model update, higher volumes in Openbank Pay and a lower contribution from portfolio sales. Cost of risk remained around 1%.
•Other gains (losses) and provisions posted a higher loss, due to the additional provisions in the UK recorded this year and higher charges related to our transformation efforts.
•Excluding the additional provisions in the UK, profit before tax grew 18% year-on-year.
Compared to Q1 2026, profit before tax saw a sharp increase in constant euros, partially favoured by lower provisions in the UK. Excluding these charges, profit before tax rose 21%, mainly driven by stronger performances in net fee income and leasing, supported by improved new business dynamics and lower costs and transformation charges.
Openbank Europe. Underlying income statement
EUR million and % change
/ Q1'26/ H1'25
Q2'26%excl. FXH1'26%excl. FX
Total income1,501 +102,989 +6+6
Total costs-663 -6-6-1,370 -7-7
Net operating income837 +7+71,619 +19+19
LLPs-347 +1+1-689 +11+11
PBT433 +136+135616 -15-16
usa.jpg
Openbank US
Profit before tax
EUR 568 mn
Commercial activity and business performance
Our digital bank has delivered a solid performance since its launch, now serving around 235,000 customers, with USD 11.4 billion in deposits gathered (+123% year-on-year). Our partnership with Verizon remained a key contributor, generating more than USD 1.3 billion in deposits since its launch in April 2025.
Gross loans and advances to customers, excluding reverse repos, were up 3% year-on-year. In constant euros, they were flat, as an increase in auto offset the impact of our asset rotation initiatives. The leasing portfolio fell 36% in constant euros, following the discontinuation of our partnership with Stellantis and weaker demand for electric vehicles.
Customer deposits, excluding repos, rose 12% year-on-year. In constant euros, they were up 9%, driven by demand deposits, supported by momentum from our digital bank, which saw strong deposit gathering early in the year, in line with our strategy to optimize funding costs. Mutual funds saw double-digit growth, contributing to a 9% increase in customer funds in constant euros.
Results
In H1 2026, profit before tax rose 13% year-on-year to EUR 568 million. In constant euros, it grew 21%, as follows:
•Total income was down 2%, mainly due to the impact of lower residual values and reduced volumes on leasing income. Net interest income remained resilient, backed by funding optimization, while net fee income fell 9%, primarily due to lower servicing fees.
•Total costs decreased 4%, supported by the benefits from productivity initiatives and continued cost discipline, as well as lower charges related to asset impairments.
•Net loan-loss provisions improved 11%, reflecting capital relief measures and resilient repayment behaviour, in part supported by persistently high used car prices. Cost of risk fell year-on-year to 4.03%.
Compared to Q1 2026, profit before tax rose 46% in constant euros, driven by a strong leasing performance, a sharp decrease in total costs (partly due to lower marketing-related expenses), lower transformation charges and favourable seasonal trends in net loan-loss provisions.
Openbank US. Underlying income statement
EUR million and % change
/ Q1'26/ H1'25
Q2'26%excl. FXH1'26%excl. FX
Total income1,207 +102,406 -9-2
Total costs-489 -6-6-1,008 -10-4
Net operating income718 +5+51,398 -8-1
LLPs-384 -13-14-827 -16-11
PBT338 +47+46568 +13+21
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CIBUnderlying attributable profit
EUR 1,742 mn
→ Our diversification across business lines, client types and global footprint, enhanced by the investments made in recent years, makes us more resilient in challenging environments and reinforces our long-term strategy focused on sustainable growth.
→ Good activity levels year-on-year across all business lines, especially Global Banking (GB) and Global Markets (GM), reflecting the benefits from the growth initiatives we have launched.
→ Underlying attributable profit reached EUR 1,742 million, a 18% increase year-on-year (+17% in constant euros), supported by strong revenue performances across business lines that far outpaced cost growth. We maintain a leading position in efficiency and profitability, with RoTE at 20.3%.
Strategy
Our Corporate & Investment Banking (CIB) business is a global franchise, well diversified by business line, country and client type. We continue to demonstrate the strength of our global platform, delivering solid performances and supporting sustainable growth in 2026 despite geopolitical uncertainty.
In Q2 2026, we continued to make progress on our strategic priorities, scaling the capabilities built in recent years to support growth across the Group, while maintaining capital discipline, profitability and shareholder value creation, in line with our ambition to:
•Deepen strategic relationships with clients, putting them first, supported by a business model that combines in-depth industry knowledge, expert advice and proven financing capabilities. This focus enabled us to lead the ranking in terms of investment banking fees in Spain in H1 2026.
Clients increasingly expect faster, safer and more integrated solutions across products, sectors and markets. A good example this quarter was our role as Coordinating Lead Arranger in a USD 22.8 billion loan for Vantage Data Centers, one of our largest project finance loan deals, reflecting seamless collaboration across our Structured Finance & Advisory (SF&A), Private Debt Mobilization and Debt Capital Markets teams, among others.
•Accelerate ONE Santander and strengthen collaboration across the Group, reinforcing an integrated client agenda between GB, GM and Global Transaction Banking (GTB), and further embedding CIB capabilities across the Group’s global businesses. Of note were GM solutions and execution services, as well as GB and GTB acting as product factories to better serve Commercial Banking customers.
Our global platforms, particularly FX and Trade, remain important levers to strengthen CIB's product integration across the Group, increase digitalization and support more scalable and capital-light
growth models. In Trade, we are progressing in the industrialization of our operating model and now close to 50% of the Group's Trade business is running on global platforms.
The US remains one of our most important growth priorities, as reflected in its contribution to total CIB revenue. Looking ahead, the Webster acquisition, which is expected to be completed in H2 2026, represents an additional opportunity to expand our client access in this market and benefit from greater scale through collaboration and leverage Santander’s US platform more broadly.
•Transform our operating model through simplification, globalization and technology and AI to drive productivity, efficiency and enhanced risk and control management. We remained focused on shared platforms and on disciplined investment allocation. As a result, our progress in application and vendor optimization is generating meaningful efficiencies in support operations.
Technology and AI are key priorities, supporting the scaling of our capabilities. This quarter, we completed our first High-Quality Liquid Assets Exchange (HQLAx) tokenized securities lending trade, an important milestone in the use of distributed ledger technology to improve collateral mobility, settlement traceability and scalability.
AI is already delivering business benefits through initiatives such as the Automated Pricer, a tool for sales in equity derivatives and repos that increases pricing automation, enabling a higher volume of client requests to be served and improving funding decisions.
•We continue to actively manage capital through our Originate-to-Share (OtS) model and to support the scale-up of our client franchise and the growth of fee-intensive and capital-light businesses. As a result, our total revenue to risk-weighted assets ratio improved 0.8 pp year-on-year to 8.8%.
Recent awards
Ranking in League Tables H1 2026
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Global FinanceGTRStructured Finance*Debt Capital Markets
Best Bank for Payments in Latin America
Best Supply Chain Finance Bank
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dcma.jpg
Global Banking & MarketsEuromoneyEquity Capital MarketsM&AECAs*
Sovereign Bond Deal of the Year (Qatar)
Latin America’s / Spain's Best Investment Bank
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Source: Dealogic, Infralogic, Bloomberg; specific filters apply. (*) Brazil Project Finance Bonds. ECAs as of FY 2025.
January - June 2026
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Business performance
Global Transaction Banking recorded higher activity levels in H1 2026 driven mainly by Export Finance, despite a less favourable interest rate environment:
•Trade & Working Capital Solutions maintained its good momentum driven by product innovation, strategic partnerships and our focus on strengthening clients' supply chains. We created initiatives that generate new business opportunities and enhance customer engagement and we increased the scale of solutions such as the Invensa partnership with Pemberton Asset Management and EIB guarantee agreements, both aimed at strengthening supply chains.
•Export Finance had high activity levels, leveraging our global platform, sector expertise and strong relationships with Export Credit Agencies and multilateral institutions. We remained focused on supporting clients globally with flexible and innovative solutions, such as the BPI France Assurance Export-backed financing for MSC Cruises, which strengthens our leading global position.
•Cash Management activity remained robust even in the current interest rate environment. We continued to grow our franchise in Latin America, expanding real-time payment solutions, enhancing treasury connectivity and developing product capabilities.
Global Banking (GB) registered strong activity levels, mainly in the Americas, supported by cross-border coverage, advisory and financing platforms:
•Corporate Finance (CF) achieved a very strong increase in activity levels year-on-year across products and markets. Leveraged Finance activity was supported by investor appetite across key sectors, with notable high-yield and cross-border transactions, such as Carlyle’s (US) buyout of BASF Coatings (Germany). ECM had a record quarter in terms of activity, supported by strong IPO momentum in the US and an important role in the IPO market reopening in Brazil.
•Structured Finance showed good activity levels despite geopolitical uncertainty, with especially good momentum in Fund Finance. Activity was supported by AI-related infrastructure and energy transition sectors. Activity remained strong in the US and in South America, while in Europe it remained at softer levels.
•Debt Finance continued with strong activity, supported by investor demand for investment-grade bonds in Europe and the US, and sustained momentum in Latin America. Activity also remained solid across refinancing, acquisition and event-driven financing, with notable transactions in the quarter such as Verizon’s inaugural USD hybrid bond.
Global Markets (GM) performed well, supported by sustained client-driven activity with institutional clients. Activity was mixed across countries, with strong momentum in the US, Mexico, Argentina and Chile compensating softer activity in Brazil. By product, the main activity drivers were Fixed Income, Currencies, and Commodities, mostly through securitized products, credit, FX and equity.
Gross customer loans and advances, excluding reverse repos, were up 25% year-on-year. In constant euros, they grew 22%, boosted by growth across business lines, especially in less capital-intensive products, such as Export Finance (ECAs) and Trade Finance in GTB and securitized products in GM.
Customer deposits, excluding repos, increased 7% year-on-year. In constant euros, they increased 4%, mainly driven by Cash Management.
Results
Underlying attributable profit in H1 2026 rose 18% year-on-year to EUR 1,742 million. In constant euros, it grew 17%, as follows:
•Total income rose 16%, on the back of strong net interest income and net fee income growth.
Net interest income increased 36%, due to higher volumes in financing activities through less capital-intensive products in GM.
Net fee income rose 7%, reflecting a strong Q2 in GB which was driven especially by Corporate Finance in the US and Europe.
Other income decreased due to lower gains on financial transactions, in a context of lower market volatility in Europe and Latin America.
By business line, in addition to double-digit revenue growth in GB and GM, total income in GTB increased 5%. By country, there were double-digit increases in the US, Europe, Mexico, Chile and Argentina.
CIB. Total income by business. H1 2026
EUR million and % change in constant euros
chart-549980a7c8a2406eb48a.jpg
Note: total income includes revenue from other activities which are less material (EUR 7 million in H1'25 and EUR 76 million in H1'26).
•Total costs increased 7%, reflecting higher activity levels, rising at a much slower pace than revenue. Efficiency improved 3.9 pp to 40.8%, one of the best in the sector.
•Net loan-loss provisions have a limited impact due to the nature of the business and the high quality of the portfolio. In H1 2026, they increased, driven by credit portfolio growth and some single names in Europe and Brazil.
As a result, RoTE reached 20.3% in H1 2026, 0.8 pp higher year-on-year, reflecting our focus on capital management, efficiency and profitability.
Compared to Q1 2026, total income was broadly stable in constant euros, as the strong quarter in GB offset the usual seasonality in GM in Q1. However, this was not reflected in underlying attributable profit due to higher costs and the impact of some single names in net loan-loss provisions.
CIB. Underlying income statement
EUR million and % change
/ Q1'26/ H1'25
Q2'26%excl. FXH1'26%excl. FX
Total income2,395 0-14,779 +16+16
Total costs-1,003 +6+5-1,948 +6+7
Net operating income1,392 -3-42,831 +24+23
LLPs-238 +15+14-444 +450+447
PBT1,151 -6-72,379 +9+8
Underlying attrib. profit853 -4-51,742 +18+17
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Index

Wealth
Underlying attributable profit
EUR 1,083 mn
→ We continue building the best wealth and insurance manager in Europe and the Americas, supported by our leading global private banking platform and our fund and insurance factories that leverage our scale and global capabilities to offer the best value proposition to our customers.
→ Record total assets under management of EUR 581 billion, +13% year-on-year in constant euros, on the back of the solid commercial dynamics. In the insurance business, gross written premiums increased to EUR 6.2 billion.
→ Underlying attributable profit amounted to EUR 1,083 million, 19% higher year-on-year (+19% also in constant euros), with revenue increasing across business lines.
Strategy
We aim to continue developing our Wealth Management & Insurance service model and value proposition through a common global platform that leverages the Group's scale and capabilities.
From 2026, our business lines are organized into two verticals: Private Banking and Insurance & Asset Management Solutions. This new structure enables us to capture more synergies and strengthen collaboration across businesses.
In Q2 2026, we focused on the following strategic initiatives:
•In Private Banking (PB), we continued to strengthen our global positioning, in line with our focus on enhancing client experience, increasing specialization, improving connectivity across regions and segments, and expanding our offering of higher value-added solutions.
During the quarter, we advanced in our innovation agenda, further enhancing AI-powered tools and capabilities across key markets.
For example, in Spain, we are developing AI-enabled solutions to increase the productivity and efficiency of our bankers, enabling them to focus on client advisory and higher value-added interactions. We are also making progress with our operational efficiency initiatives in our International Private Banking unit. These developments are helping to improve commercial effectiveness, advisory capabilities and client experience.
We continue to promote international collaboration as a key pillar of our value proposition, enabling us to connect clients to the full range of Santander's global capabilities. This is reflected in a 20% year-on-year increase in new client referrals.
At the same time, our efforts remain focused on Ultra-High-Net-Worth (UHNW) and Family Office clients through an enhanced value-added proposition, covering health, education, art and lifestyle services, aimed at strengthening client engagement within this strategic segment.
Private Banking clients
Thousands
+11%
chart-0743dc18ed714612a67a.jpg
Note: June 2025 figures have been adjusted for better comparability due to a change in perimeter. Without this adjustment, PB’s customers +5% year-on-year.
•Insurance & Asset Management Solutions (Ins. & AM Solutions) is now an established business line which offers a value proposition that brings together liquid, illiquid and insurance
products into a unified model, as a result of the integration of asset management and insurance businesses.
•In liquid products, we continue to strengthen our global investment platform and operating model to underpin solid commercial activity and sustained client engagement. The Group's global capabilities and a product offering aligned with client needs support the solid performance of our commercial metrics.
During the quarter, we continued to simplify and globalize our operating model, while deploying digital and automation capabilities, including tools such as SAMi (AI assistant supporting commercial activity) and SAM Conecta (global distribution and business intelligence platform that centralizes commercial and product information). Both enhance commercial effectiveness and operational efficiency.
•In illiquid products, we are scaling up the alternatives business. We continued to reinforce distribution and investment capabilities, while broadening our product offering, which is attracting institutional investors, family offices and private investors.
During Q2 2026, our private credit strategy fund (ABCL II) closed its first funding round. The initiative, which provides financing to companies backed by hard assets that are essential for business continuity, has an active fundraising pipeline that is expected to drive additional capital commitments in the coming months.

•In insurance, we are building a global operating model to become an integrated insurance platform that combines Life & Pensions, Health and Protection under a single execution model:
–In Life & Pensions, we are setting up a one-stop shop for retirement needs. In Spain and Portugal, we have integrated life savings and pensions into a single structure to deliver combined solutions, gaining efficiencies and scale, with the model already in place and new solutions under development.
–In Protection, we continue to integrate products into banking interactions with clients while strengthening our distribution model and unlocking value pools, such as health insurance.
In Brazil, we are addressing high value segments such as Select and SMEs. We also launched a proof of concept for the SaudeCompara platform, a solution that compares and distributes healthcare plans under a B2B2E model. In Portugal, our OneCare Health was named Product of the Year 2026, an award chosen by consumers, reflecting a differentiated health solution driven by its modularity and focus on prevention.
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Index

Business performance
Solid commercial activity and market performance in Q2 2026 enabled us to reach record total assets under management (AuMs) of EUR 581 billion, 13% higher year-on-year in constant euros.
By business and in constant euros, volumes performed as follows:
•In PB, commercial activity progressively normalized throughout Q2 following the exceptionally strong start to the year, demonstrating the resilience of client activity despite market movements and geopolitical uncertainty. At the same time, we remained focused on growing recurrent fees.
Customer assets and liabilities reached EUR 380 billion, +15% year-on-year, with all products growing, including value-added solutions, such as alternatives and discretionary portfolio management which we are promoting. Net new money totalled EUR 11.0 billion and our Private Banking customer base stood at nearly 302,000.
•In Insurance & Asset Management Solutions, total AuMs reached EUR 294 billion, +11% year-on-year:
–Liquid products: total AuMs reached EUR 292 billion, +11% year-on-year, on the back of solid commercial activity, demonstrating strong client engagement and an attractive product offering. Net sales totalled EUR 6.6 billion in H1 2026.
–Illiquid products: total AuMs reached EUR 2.6 billion, reflecting our expansion across countries.
–Insurance: gross written premiums reached EUR 6.2 billion in H1 2026, +11% year-on-year, with both Life & Pensions and Protection growing double digits.
Wealth. Business performance. June 2026
EUR billion and % change in constant euros
Total AuMs
Funds and investment
Custody
Customer deposits
Customer loans
GWPs
chart-10b0a995bbd949158cfa.jpg
/ Mar-26/ Jun-25
+6%+13%
+6%+12%
+8%+22%
+1%0%
+7%+6%
+20%+11%
Note: total products marketed, advised, under custody and/or managed.
Results
Underlying attributable profit in H1 2026 amounted to EUR 1,083 million, 19% higher year-on-year. In constant euros, it also grew 19%, with the following performance by line:
•Total income increased 9% as a result of our focus on value-added solutions to expand our fee businesses and improve revenue recurrency and predictability.
Net interest income decreased 1%, though it improved in the quarter supported by higher loan yields and an increase in the credit portfolio.

Net fee income rose 11% year-on-year, with strong performances across both business lines, but particularly in Private Banking, driven by solid commercial activity and our focus on promoting fee-generating activities and products.
Other income increased, boosted by the good performance in insurance.
•Total costs increased 6% year-on-year (growing at slower pace than total income) due to our investments to strengthen our teams and to develop new capabilities to address increasing commercial activity.
Including the fees distributed and recorded in other global businesses, total income reached EUR 3,385 million, up 8% on the back of higher customer activity in PB and higher volumes in Insurance & Asset Management Solutions.
Wealth. Total income. H1 2026
EUR million and YoY % change in constant euros
PB
Ins&AM Solutions
chart-8a48ed9ee0e54cd9a52a.jpg
Total incomeTotal income + distr. fees
+5%+5%
+23%+13%
Total incomeDistribution fees
Note: additionally, Wealth's total income included EUR 72 million in H1'25 and EUR 36 million in H1'26 corresponding to Other Investments. Information excludes overlaps between Wealth businesses and insurance fees recorded in Openbank.
When considering these distributed fees along with our PAT, the total contribution to Group profit (PAT+Fees) reached EUR 1,945 million, up 14% year-on-year in constant euros.
As a result, our RoTE in H1 2026 was 56.9%.
Compared to Q1 2026, underlying attributable profit increased 19% in constant euros, supported by strong revenue growth in Insurance & Asset Management Solutions and lower costs.
Wealth. Underlying income statement
EUR million and % change
/ Q1'26/ H1'25
Q2'26%excl. FXH1'26%excl. FX
Total income1,093 +9+92,093 +8+9
Total costs-367 0-1-733 +5+6
Net operating income726 +15+141,360 +11+11
LLPs2 ——-7 -66-66
PBT732 +17+161,356 +13+13
Underlying attrib. profit590 +20+191,083 +19+19
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Index

Payments
Underlying attributable profit
EUR 78 mn
→ Santander holds a unique position in the payments industry, driven by its payments platform business, offering best-in-class products across the entire value chain: issuing, acquiring, account-to-account (A2A) payments and international payments.
→ Activity increased across all business lines, underpinned by the development of our global platforms, which enabled us to continue to gain scale. Total payments volume (TPV) in Getnet rose 10% year-on-year in constant euros, the number of transactions processed in Getnet Platforms was five times higher and Ebury's customer base grew 28% year-on-year.
→ Underlying attributable profit was EUR 78 million, four times higher than in H1 2025 in constant euros, driven by strong revenue growth. EBITDA margin improved 3.8 pp year-on-year to 32.6%.
Strategy
In Payment Solutions (Payments), the Group's payments platform business, we continued executing our priorities and strengthening our strategic positioning:
•In Getnet, our acquiring business, we maintain our leadership in the payments ecosystem across Latin America, Spain and Portugal. In Mexico in Q2 2026, we continued to innovate through an agentic payments use case that is pioneering in Latin America, in collaboration with Mastercard and the software company Neivor. It enables merchants to accept and process AI agent-initiated payments, strengthening our position in next-generation payment solutions.
We also strengthened our value proposition for global merchants with the launch of Pay-in in Brazil, an initiative that enables international businesses to trade and receive payments without establishing an entity in the country, thereby strengthening and simplifying cross-border expansion. We also enhanced our Dynamic Currency Conversion (DCC) solution in Mexico, our value-added service that allows international customers to pay in their local currency, with flexible pricing adapted to the transaction.
Additionally, we continued to advance in our commercial expansion in key sectors and countries through new strategic partnerships, such as the one reached with AEVI, a payment technology provider. Through this partnership, which has been deployed in Mexico, we have jointly developed a payments solution that broadens our potential access to new customers, supporting further growth in payments volumes.
•In Getnet Platforms, we continued to deploy our technology platform for A2A payment processing, foreign exchange, fraud detection and other value-added services. The platform now processes more than 1 billion payments per month across our markets.
At the same time, we are continuing to expand the rollout of our global card platform which is now processing more than 500 million transactions per month across Brazil, Mexico, Chile, Spain and the UK.
These platforms support multiple payment methods and greater differentiation in the open market and improve the efficiency of our operational processes and infrastructure.
•Ebury, our global platform offering cross-border payments and FX solutions for mid-sized companies and SMEs, completed a funding round of approximately GBP 550 million during the quarter, led by Centerbridge alongside Santander and existing stakeholders, to accelerate product development, international expansion and AI capabilities, further strengthening its long-term growth potential.
Business performance
In H1 2026, activity increased year-on-year, with widespread growth across our business lines.
•Getnet’s total payment volume reached EUR 129 billion, representing a 10% year-on-year increase in constant euros, driven mainly by higher commercial activity in Mexico, Brazil and Europe.
•In Getnet Platforms, the number of processed transactions were five times higher than the same period last year, driven by Brazil.
•At Ebury, the number of active customers grew by 28% year-on-year, surpassing 28,000.
Loans and deposits are not material in Payments, as they represent just 0.1% and 0.2% of the total Group, respectively.
Results
Underlying attributable profit was EUR 78 million in H1 2026, compared with a profit of EUR 16 million in H1 2025. In constant euros, the performance across lines was the following:
•Total income grew 17%, driven by net fee income in Getnet, supported by increased activity, and higher revenue from payment processing services provided to other financial institutions.
•Total costs rose 8%, +4% in real terms, reflecting the investments in the development of global platforms.
•Net loan-loss provisions increased due to the impact in Getnet Brazil in Q1 2026, though they are not material given the nature of the business.
Overall, the EBITDA margin reached 32.6% (+3.8 pp year-on-year).
Compared to Q1 2026, underlying attributable profit grew significantly in constant euros, supported by higher net fee income, net loan-loss provision normalization in Getnet Brazil and a lower tax burden.
Payments. Underlying income statement
EUR million and % change
/ Q1'26/ H1'25
Q2'26%excl. FXH1'26%excl. FX
Total income387 +1-1771 +20+17
Total costs-337 +5+4-657 +9+8
Net operating income51 -19-23114 +176+138
LLPs-6 -53-55-20 +85+81
PBT43 -12-1792 +327+230
Underlying attrib. profit59 +197+18378 +400+297
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Index

Corporate Centre
Underlying attributable profit
-EUR 525 mn
→ The Corporate Centre continued to support the Group, defining, developing and coordinating the Group's strategy, as well as aiding the operating units, adding value.
→ It carries out the financial and capital management functions as well as corporate oversight and control functions and coordinates interactions with the Group's supervisors and regulators.
→ Underlying attributable loss in H1 2026 of EUR 525 million, compared with a loss of EUR 713 million in H1 2025, driven by lower LLPs, following provisions recorded in H1 2025 related to our plan to reduce the NPL ratio, and a lower tax burden. Additionally, it was supported by positive results related to certain stakes and dividends from our stake in Poland.
Strategy and functions
The Corporate Centre contributes value to the Group through the following functions, among others:
•Global control frameworks and supervision.
•Fostering the exchange of best practices in cost management, which enables us to be one of the most efficient banks.
•Collaborating in the definition and execution of the global strategy, corporate development operations and projects to ensure we meet the business plan.
•Contributing to the launch of projects that will be developed by our global businesses, aimed at leveraging our worldwide presence to generate economies of scale.
•Ensuring open and constructive communication with shareholders, analysts, investors, bondholders, rating agencies and other market players.
•Adding value to our businesses, countries and divisions by encouraging the exchange of best practices, driving and managing innovative global initiatives and defining corporate policies to improve process efficiency and customer service quality.
It also coordinates relationships with European regulators and supervisors and carries out functions related to financial management and capital, as follows:
•Financial Management functions:
•Structural management of liquidity risk associated with funding the Group’s recurring activity and stakes of a financial nature. At the end of June 2026, the liquidity buffer was EUR 329 billion (provisional data).
This is done ensuring the diversification of funding sources (issuances and others), maintaining an adequate profile in volumes, maturities and costs.
The price of these transactions with other Group units is the market rate that includes all liquidity concepts (which the Group supports by immobilizing funds during the term of the transaction) and regulatory requirements (TLAC/MREL).
•We also actively manage interest rate risk to dampen the impact of interest rate changes on net interest income, conducted via high credit quality, very liquid and low capital consumption derivatives.
•Strategic management of exposure to exchange rates in equity and dynamic management of the FX hedges related to the units’ next 12 months results in euros. The net investments in equity currently hedged totalled EUR 15,822 million (mainly in the UK,
Mexico and Chile) with different FX instruments (spots and forwards).
•Management of total capital and reserves: Group capital planning and management, aimed at optimizing capital use and efficient allocation across business units and opportunities by: i) coordinating with subsidiaries; ii) setting solvency targets and monitoring capital ratios; and iii) utilizing asset mobilization and risk transfer through the Global Asset Desk to maximize capital efficiency and shareholder returns.
Results
In H1 2026, the underlying attributable loss was EUR 525 million, compared with a loss of EUR 713 million recorded in H1 2025. By line:
•Net interest income declined EUR 107 million impacted by lower interest rates.
•Losses on financial transactions worsened by EUR 307 million, due to a higher impact from foreign currency hedges.
•Additionally, 'other operating income' increased due to higher results from certain stakes and the dividends from our stake in Poland.
•Total costs decreased by 3% compared to H1 2025, reflecting simplification measures.
•Net loan-loss provisions improved significantly, as we recorded provisions in H1 2025 related to our plan to accelerate NPL ratio reductions, which improved the Group's credit quality.
•Additionally, the improvement in underlying profit was supported by a lower tax burden year-on-year.
Corporate Centre. Underlying income statement
EUR million and % change
Q2'26Q1'26% chg.H1'26H1'25% chg.
Total income-295 -171+72-466 -353+32
Net operating income-399 -274+46-673 -567+19
PBT-450 -296+52-746 -807-8
Underlying attrib. profit-385 -141+174-525 -713-26

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Index

Sustainability
Strategy
1Support our customers in meeting their goals in their transition to a low-carbon economy, while also managing climate-related risks and impacts.
2Encourage employee growth, fostering an inclusive culture and promoting skill development, while providing fair working conditions.
3Contribute to the economic, financial and social development of our communities, with a special focus on education, employability and entrepreneurship.
4Be a trusted partner to our customers, with products and services adapted to their needs, while applying responsible practices, supporting their financial inclusion and protecting their information.
5Act responsibly through a strong culture, governance and conduct.
Key highlights
In Q2 2026, we advanced in the following initiatives:
→ In Retail, we promoted sustainable financing in Latin America, including three transactions in Brazil totalling BRL 900 million under the Eco Invest Brazil initiative; in Mexico we structured the first silver-labelled social loan, aimed at supporting vulnerable elderly people, totalling MXN 250 million, and we led a USD 1.2 billion syndicated green financing for a hotel group; and in Argentina we participated in the first international green bond issuance by a renewable energy company, amounting to USD 400 million. Additionally, 6.7 million people continued to benefit from financial inclusion measures, of which 1.4 million were new beneficiaries in H1 2026.
→ In Openbank Europe, we financed around 200,000 electric vehicles in H1 2026, a 71% increase year-on-year, with a 12.2% market share in Europe as of May 2026.
→ In CIB, we financed, among others, the following international projects:
–We allocated EUR 6.9 billion to green financing or mobilization during the quarter, achieving EUR 188 billion to date towards our target of EUR 220 billion in green financing or mobilization by 2030.1
–In ECM, we participated in Solaria's EUR 300 million capital increase, supporting its expansion in clean energy for data centres through wind power and battery storage.
–In GTB, we acted as Sole Sustainability Coordinator for the Republic of Ecuador’s USD 500 million transaction, partly guaranteed by the Inter-American Development Bank (IDB), which was named Environmental Finance’s 2026 Social Loan of the Year.
–In DCM, we continued to participate through different leadership roles in European Green Bond (EuGB), such as a EUR 500 million issuance for Gruppo Hera, EUR 500 million for Redeia and EUR 1.5 billion for Groupe BPCE. In Latin America, we supported MSU Green Energy's USD 400 million green bond issuance, one of Argentina's leading renewable energy platforms, and Mundo's USD 435 million sustainability bond, a Chilean telecommunications operator.
–In Structured Finance, we supported financing Foxtail Flats and Four Mile Mesa Solar and Storage, two projects by DESRI, one of the leading renewable energy developers in the US, providing solar generation and battery storage capacity to power Meta's data centres.
→ In Wealth, our Socially Responsible Investments reached 24% of total assets under management, including SAM funds, third-party funds, portfolios and directly held assets under advisory in Private Banking.
Additionally, we allocated EUR 29.1 million in the quarter to promote education, employability and entrepreneurship, and helped 1.2 million people and organizations. In total, we have allocated EUR 351.1 million since 2023, moving towards our EUR 400 million target set for 2023-2026.
1.Target was set in 2019 and 2021, before the publication of the European taxonomy in Q2 2023. Therefore, the target definition is not fully aligned with the taxonomy. For further information, see the 'Alternative performance measures' section in this report.
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Corporate governance
Changes to the Group's Senior Management
On 23 June, Banco Santander’s Board of Directors approved the appointment of Matías Sánchez and Borja Oyarzábal as Global Co-Heads of the Group’s Retail & Commercial Banking business. Matías Sánchez will be responsible for Retail, while Borja Oyarzábal will lead Commercial. The appointments are subject to the relevant regulatory approvals. Mr Sánchez has nearly three decades of experience within the Group, where he has held a number of leadership positions. Since September 2022, he has served as Global Head of Cards and Digital Solutions. Mr Oyarzábal joined the Group in March 2025 as Global Head of Commercial and Head of Commercial Spain, having previously served as Chief Executive Officer of Tresmares Capital since 2019. They succeed Daniel Barriuso, who remains with the Group as Senior Advisor to the Chair and the Chief Executive Officer and as a board member of Santander México and Openbank.
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Appendix
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•Group information
Financial information

Group information
In this appendix, results are presented on an underlying basis and the balance sheet figures, ratios and other metrics exclude Poland for all periods in 2025. However, if we were to include Poland, the Group's main management ratios would not be materially affected. For further information, see the 'Alternative performance measures' section in this report.
From May 2026, the balance sheet and results of Grupo Santander, Retail & Commercial Banking (within Retail UK) and the UK secondary segment include TSB. For further information, see the 'Significant events in the period' section in this report.
For Argentina and any grouping which includes it, the variations in constant euros have been calculated considering the Argentine peso exchange rate on the last working day for each of the periods presented. For more information, see the calculation method detailed in the ‘Alternative performance measures’ section in this appendix.
Underlying net fee income. Consolidated
EUR million
Q2'26Q1'26Change (%)H1'26H1'25Change (%)
Fees from services1,907 1,823 4.63,730 3,503 6.5
Wealth management and marketing of customer funds1,154 1,117 3.32,271 2,119 7.2
Securities and custody433 417 3.8850 689 23.4
Net fee income3,494 3,357 4.16,851 6,311 8.6
Underlying total costs. Consolidated
EUR million
Q2'26Q1'26Change (%)H1'26H1'25Change (%)
Staff costs3,551 3,379 5.16,930 6,736 2.9
Other general administrative expenses2,015 1,923 4.83,938 4,024 (2.1)
   Information technology652 627 4.01,279 1,125 13.7
   Communications97 88 10.2185 175 5.7
   Advertising125 121 3.3246 267 (7.9)
   Buildings and premises165 162 1.9327 388 (15.7)
   Printed and office material14 17 (17.6)31 41 (24.4)
   Taxes (other than tax on profits)119 140 (15.0)259 279 (7.2)
   Other expenses843 768 9.81,611 1,749 (7.9)
Administrative expenses5,566 5,302 5.010,868 10,760 1.0
Depreciation and amortization839 828 1.31,667 1,626 2.5
Operating expenses6,405 6,130 4.512,535 12,386 1.2
Other operating costs322 354 (9.0)676 865 (21.8)
Total costs6,727 6,484 3.713,211 13,251 (0.3)
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•Group information
Employees and branches. Consolidated
EmployeesBranches
Jun-26Jun-25ChangeJun-26Jun-25Change
Retail & Commercial Banking125,036132,236-7,200Spain1,458 1,724 (266)
Openbank29,53531,344-1,809UK484 420 64 
Corporate & Investment Banking13,31312,742571Portugal281 373 (92)
Wealth Management & Insurance7,3157,391-76Openbank Europe293 297 (4)
Payment Solutions8,2138,15360US372 403 (31)
Corporate Centre1,8671,81255Mexico1,264 1,332 (68)
Total Group185,279193,678(8,399)Brazil1,515 1,888 (373)
Chile223 231 (8)
Argentina366 405 (39)
Rest of the Group240 249 (9)
Total Group6,4967,322(826)

Underlying net loan-loss provisions. Consolidated
EUR million
Q2'26Q1'26Change (%)H1'26H1'25Change (%)
Non-performing loans3,769 3,648 3.37,417 6,902 7.5
Recovery of written-off assets(420)(423)(0.7)(843)(844)(0.1)
Net loan-loss provisions3,349 3,225 3.86,574 6,058 8.5
Loans and advances to customers. Consolidated
EUR million
Change
Jun-26Jun-25Absolute%Dec-25
Commercial bills52,293 48,432 3,861 8.051,110 
Secured loans589,377 529,629 59,748 11.3530,749 
Other term loans315,997 280,488 35,509 12.7295,998 
Finance leases39,871 38,185 1,686 4.438,540 
Receivable on demand11,683 11,593 90 0.810,313 
Credit cards receivable27,628 24,582 3,046 12.426,179 
Impaired assets34,713 30,401 4,312 14.231,577 
Gross loans and advances to customers (excl. reverse repos)1,071,562 963,310 108,252 11.2984,466 
Reverse repos100,403 68,227 32,176 47.273,980 
Gross loans and advances to customers1,171,965 1,031,537 140,428 13.61,058,446 
Loan-loss allowances22,803 20,810 1,993 9.621,158 
Loans and advances to customers1,149,162 1,010,727 138,435 13.71,037,288 
January - June 2026
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•Group information
Total funds. Consolidated
EUR million
Change
Jun-26Jun-25Absolute%Dec-25
Demand deposits685,768 631,963 53,805 8.5646,125 
Time deposits326,774 278,911 47,863 17.2298,284 
Mutual funds284,751 237,566 47,185 19.9255,389 
Customer funds1,297,293 1,148,440 148,853 13.01,199,798 
Pension funds15,966 15,631 335 2.116,112 
Managed portfolios54,952 45,933 9,019 19.650,459 
Repos121,220 97,355 23,865 24.596,791 
Total funds1,489,431 1,307,359 182,072 13.91,363,160 
Eligible capital (phased-in)1. Consolidated
EUR million
Change
Jun-26Jun-25Absolute%Dec-25
Capital stock and reserves138,082 131,218 6,864 5.2128,798 
Attributable profit8,973 6,833 2,141 31.314,101 
Dividends(1,832)(1,708)(124)7.3(3,525)
Other retained earnings(36,055)(39,970)3,915 (9.8)(40,445)
Minority interests7,143 8,179 (1,035)(12.7)9,037 
Goodwill and intangible assets(15,246)(15,297)50 (0.3)(15,037)
Other deductions(14,617)(8,001)(6,616)82.7(8,190)
CET186,447 81,253 5,194 6.484,739 
Preferred shares and other eligible tier 110,226 9,578 648 6.89,645 
Tier 196,673 90,830 5,843 6.494,385 
Generic funds and eligible tier 2 instruments19,076 16,905 2,172 12.817,460 
Eligible capital115,750 107,735 8,014 7.4111,845 
Risk-weighted assets616,803 625,750 (8,947)(1.4)629,430 
CET1 capital ratio14.013.01.013.5
Tier 1 capital ratio15.714.51.215.0
Total capital ratio18.817.21.517.8
Note: includes Poland.
1. Phased-in ratios are calculated in accordance with the transitory treatment of the CRR.

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•Information by segment

Segment information
Primary segments
Retail & Commercial Banking
EUR million
Ex. TSBEx. TSB
/ Q1'26/ Q1'26/ H1'25/ H1'25
Underlying income statementQ2'26%% excl. FX%% excl. FXH1'26%% excl. FX%% excl. FX
Net interest income7,370 8.6 7.0 5.4 3.9 14,159 6.0 4.3 4.4 2.7 
Net fee income1,697 4.0 2.2 3.1 1.4 3,329 8.9 6.3 8.4 5.9 
Gains (losses) on financial transactions 1
151 (15.1)(14.4)(17.0)(16.3)329 8.3 7.3 7.2 6.1 
Other operating income(367)16.6 16.0 15.1 14.5 (681)32.4 31.3 31.5 30.4 
Total income8,851 6.8 5.3 4.1 2.5 17,135 5.8 3.9 4.4 2.5 
Total costs(3,594)7.1 5.4 3.2 1.5 (6,948)(1.2)(2.7)(3.1)(4.6)
Net operating income5,258 6.6 5.2 4.7 3.2 10,188 11.1 8.9 10.1 7.9 
Net loan-loss provisions(2,078)6.9 4.3 6.1 3.5 (4,021)9.4 5.7 9.0 5.3 
Other gains (losses) and provisions(204)99.7 99.1 99.7 99.1 (306)46.3 48.4 46.4 48.4 
Profit before tax2,976 3.2 2.4 0.4 (0.3)5,861 10.9 9.6 9.4 8.2 
Tax on profit(757)(4.7)(5.5)(8.0)(8.8)(1,550)4.8 3.5 3.0 1.7 
Profit from continuing operations2,220 6.2 5.4 3.6 2.9 4,310 13.3 12.1 11.9 10.7 
Net profit from discontinued operations— — — — — — — — — — 
Consolidated profit2,220 6.2 5.4 3.6 2.9 4,310 13.3 12.1 11.9 10.7 
Non-controlling interests(104)27.9 26.8 27.9 26.8 (186)23.7 21.9 23.7 21.9 
Underlying attributable profit to the parent2,115 5.3 4.6 2.6 1.9 4,124 12.9 11.7 11.4 10.2 
Activity metrics
Gross loans and advances to customers ²655,098 8.6 7.4 1.6 0.5 655,098 11.2 9.3 4.1 2.3 
Customer funds810,250 9.1 8.0 3.5 2.5 810,250 15.6 13.6 9.7 7.8 
    Customer deposits ³686,510 10.0 8.9 3.3 2.3 686,510 14.5 12.8 7.6 6.0 
    Mutual funds123,740 4.6 3.4 4.6 3.4 123,740 22.3 18.1 22.3 18.1 
Risk-weighted assets295,406 5.1 0.5 295,406 1.7 (2.8)
Ratios (%), employees and customers
RoTE17.4 0.7 17.1 0.8 
Efficiency ratio40.6 0.1 40.5 (2.9)
NPL ratio3.05 (0.13)3.05 (0.06)
NPL coverage ratio66 (1)66 2 
Number of employees125,036 0.9 125,036 (5.4)
Number of total customers (thousands)154,511 3.8 154,511 7.2 
Number of active customers (thousands)79,633 4.0 79,633 5.7 
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
January - June 2026
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•Information by segment
Retail Spain
EUR million
/ Q1'26/ H1'25
Underlying income statementQ2'26%H1'26%
Net interest income1,548 4.8 3,025 2.5 
Net fee income331 (3.8)675 6.8 
Total income1,949 2.2 3,857 6.4 
Total costs(598)(1.7)(1,207)(8.0)
Net operating income1,351 4.0 2,650 14.5 
Net loan-loss provisions(187)59.2 (304)(44.9)
Profit before tax1,068 (8.0)2,229 32.7 
Activity metrics
Gross loans and advances to customers 1
161,116 1.9 161,116 0.6 
Customer funds292,610 3.5 292,610 7.9 
    Customer deposits 2
237,924 3.2 237,924 6.1 
    Mutual funds54,686 5.0 54,686 16.6 
1. Excluding reverse repos.
2. Excluding repos.
Retail UK
EUR million
Ex. TSBEx. TSB
/ Q1'26/ Q1'26/ H1'25/ H1'25
Underlying income statementQ2'26%% excl. FX%% excl. FXH1'26%% excl. FX%% excl. FX
Net interest income1,428 18.2 17.9 0.5 0.3 2,635 7.3 10.5 (1.4)1.5 
Net fee income102 26.4 26.1 8.3 8.0 183 32.4 36.3 21.8 25.4 
Total income1,452 22.7 22.5 3.5 3.3 2,635 10.9 14.1 1.3 4.3 
Total costs(763)16.9 16.7 (3.3)(3.5)(1,416)(3.9)(1.1)(12.9)(10.3)
Net operating income689 29.8 29.6 11.9 11.6 1,219 35.0 39.0 24.5 28.2 
Net loan-loss provisions(115)52.5 52.2 32.3 32.0 (191)69.4 74.4 55.9 60.5 
Profit before tax522 25.4 25.2 6.2 6.0 938 35.8 39.8 24.2 27.9 
Activity metrics
Gross loans and advances to customers 1
275,225 19.8 18.2 1.6 0.2 275,225 21.7 22.3 3.2 3.7 
Customer funds266,699 20.7 19.1 1.9 0.5 266,699 25.7 26.3 6.1 6.6 
    Customer deposits 2
259,024 21.6 20.0 2.0 0.7 259,024 25.6 26.1 5.4 5.9 
    Mutual funds7,675 (2.7)(4.0)(2.7)(4.0)7,675 30.3 30.9 30.3 30.9 
1. Excluding reverse repos.
2. Excluding repos.
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•Information by segment
Retail Mexico
EUR million
/ Q1'26/ H1'25
Underlying income statementQ2'26%% excl. FXH1'26%% excl. FX
Net interest income1,063 5.6 3.9 2,070 8.0 0.9 
Net fee income274 7.0 5.3 529 22.5 14.5 
Total income1,299 3.6 2.0 2,552 11.5 4.2 
Total costs(523)4.9 3.2 (1,022)4.2 (2.6)
Net operating income775 2.8 1.1 1,529 16.9 9.2 
Net loan-loss provisions(341)1.2 (0.5)(679)21.8 13.9 
Profit before tax426 4.7 3.0 832 10.8 3.5 
Activity metrics
Gross loans and advances to customers 1
39,352 1.5 (2.5)39,352 12.5 1.4 
Customer funds58,160 4.0 (0.1)58,160 18.5 6.8 
    Customer deposits 2
40,899 2.2 (1.8)40,899 16.8 5.2 
    Mutual funds17,260 8.6 4.3 17,260 22.8 10.6 
1. Excluding reverse repos.
2. Excluding repos.
Retail Brazil
EUR million
/ Q1'26/ H1'25
Underlying income statementQ2'26%% excl. FXH1'26%% excl. FX
Net interest income1,966 7.5 2.7 3,794 4.9 0.3 
Net fee income567 6.6 1.8 1,100 1.6 (3.0)
Total income2,423 4.8 0.0 4,737 2.7 (1.9)
Total costs(1,081)7.6 2.8 (2,085)6.1 1.4 
Net operating income1,343 2.6 (2.1)2,652 0.2 (4.2)
Net loan-loss provisions(1,032)7.9 3.1 (1,988)0.8 (3.7)
Profit before tax285 (18.4)(22.6)634 (5.9)(10.1)
Activity metrics
Gross loans and advances to customers 1
70,392 2.3 0.7 70,392 11.7 3.1 
Customer funds94,110 6.9 5.2 94,110 24.9 15.4 
    Customer deposits 2
66,975 9.1 7.3 66,975 21.2 11.9 
    Mutual funds27,135 1.9 0.2 27,135 35.1 24.8 
1. Excluding reverse repos.
2. Excluding repos.
January - June 2026
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•Information by segment
Openbank
EUR million
/ Q1'26/ H1'25
Underlying income statementQ2'26%% excl. FXH1'26%% excl. FX
Net interest income2,815 0.7 (0.1)5,610 1.9 4.1 
Net fee income342 (8.1)(9.1)714 5.0 5.9 
Gains (losses) on financial transactions 1
(12)383.9 397.3 (14)(39.4)(38.1)
Other operating income130 37.7 37.2 225 (14.9)(11.6)
Total income3,276 0.5 (0.3)6,535 1.7 3.8 
Total costs(1,324)(5.1)(5.7)(2,718)(5.0)(2.9)
Net operating income1,952 4.6 3.6 3,817 7.1 9.2 
Net loan-loss provisions(1,029)(2.4)(3.4)(2,084)0.4 2.7 
Other gains (losses) and provisions(57)(78.9)(79.0)(328)852.0 894.8 
Profit before tax866 60.5 58.7 1,405 (3.5)(1.9)
Tax on profit(243)45.8 44.4 (409)47.2 45.2 
Profit from continuing operations623 67.0 65.0 996 (15.4)(13.4)
Net profit from discontinued operations— — — — — — 
Consolidated profit623 67.0 65.0 996 (15.4)(13.4)
Non-controlling interests(86)4.1 3.8 (169)25.0 24.7 
Underlying attributable profit to the parent537 85.0 82.4 827 (20.7)(18.5)
Activity metrics
Gross loans and advances to customers ²220,241 2.1 1.6 220,241 4.3 2.6 
Customer funds145,426 1.8 1.4 145,426 5.1 3.8 
    Customer deposits ³135,631 1.2 0.9 135,631 4.4 3.0 
    Mutual funds9,796 9.9 9.5 9,796 17.2 15.8 
Risk-weighted assets160,650 1.5 160,650 3.1 
Ratios (%), employees and customers
RoTE10.2 5.1 7.7 (2.7)
Efficiency ratio40.4 (2.4)41.6 (2.9)
NPL ratio5.61 0.09 5.61 0.64 
NPL coverage ratio70 (1)70 (7)
Number of employees29,535 (2.6)29,535 (5.8)
Number of total customers (thousands)27,612 1.6 27,612 6.7 
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
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•Information by segment
Openbank Europe
EUR million
/ Q1'26/ H1'25
Underlying income statementQ2'26%% excl. FXH1'26%% excl. FX
Net interest income1,211 0.6 0.2 2,415 6.6 6.2 
Net fee income195 2.5 2.4 385 3.4 3.5 
Total income1,501 0.8 0.5 2,989 5.7 5.5 
Total costs(663)(6.2)(6.5)(1,370)(6.9)(7.0)
Net operating income837 7.2 6.8 1,619 19.4 19.1 
Net loan-loss provisions(347)1.2 1.0 (689)11.3 11.2 
Profit before tax433 136.3 134.7 616 (15.3)(15.6)
Activity metrics
Gross loans and advances to customers 1
145,717 1.9 1.9 145,717 2.4 2.0 
Customer funds88,644 2.2 2.2 88,644 (0.1)(0.6)
    Customer deposits 2
82,924 1.7 1.8 82,924 (1.3)(1.7)
    Mutual funds5,719 9.2 9.2 5,719 19.9 19.9 
1. Excluding reverse repos.
2. Excluding repos.
Openbank US
EUR million
/ Q1'26/ H1'25
Underlying income statementQ2'26%% excl. FXH1'26%% excl. FX
Net interest income1,097 0.4 (0.3)2,189 (6.8)(0.5)
Net fee income65 (22.4)(22.9)148 (15.2)(9.5)
Total income1,207 0.6 — 2,406 (8.6)(2.3)
Total costs(489)(5.8)(6.4)(1,008)(9.7)(3.5)
Net operating income718 5.5 4.9 1,398 (7.8)(1.4)
Net loan-loss provisions(384)(13.2)(13.8)(827)(16.4)(10.7)
Profit before tax338 46.8 46.1 568 13.5 21.2 
Activity metrics
Gross loans and advances to customers 1
49,711 1.3 0.4 49,711 2.7 (0.1)
Customer funds55,307 0.9 0.0 55,307 12.5 9.4 
    Customer deposits 2
51,231 0.2 (0.7)51,231 12.4 9.3 
    Mutual funds4,076 11.1 10.1 4,076 13.6 10.5 
1. Excluding reverse repos.
2. Excluding repos.
January - June 2026
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•Information by segment
Corporate & Investment Banking
EUR million
/ Q1'26/ H1'25
Underlying income statementQ2'26%% excl. FXH1'26%% excl. FX
Net interest income1,331 9.8 8.3 2,543 36.9 35.6 
Net fee income725 15.2 14.2 1,353 6.8 7.5 
Gains (losses) on financial transactions 1
66 (87.9)(88.0)613 (16.7)(16.3)
Other operating income274 — — 270 4.5 4.7 
Total income2,395 0.5 (0.6)4,779 16.0 15.9 
Total costs(1,003)6.1 5.2 (1,948)5.9 6.9 
Net operating income1,392 (3.2)(4.4)2,831 24.2 22.9 
Net loan-loss provisions(238)15.2 13.8 (444)450.2 447.3 
Other gains (losses) and provisions(4)(14.1)(14.5)(8)(25.4)(24.4)
Profit before tax1,151 (6.3)(7.4)2,379 8.8 7.6 
Tax on profit(262)(12.9)(13.9)(563)(13.0)(14.1)
Profit from continuing operations889 (4.1)(5.2)1,816 17.9 16.7 
Net profit from discontinued operations— — — — — — 
Consolidated profit889 (4.1)(5.2)1,816 17.9 16.7 
Non-controlling interests(36)(6.2)(7.7)(75)8.8 6.1 
Underlying attributable profit to the parent853 (4.0)(5.1)1,742 18.3 17.2 
Activity metrics
Gross loans and advances to customers ²161,618 2.6 1.8 161,618 25.1 22.0 
Customer funds144,553 (1.3)(2.1)144,553 5.0 1.5 
    Customer deposits ³130,434 (2.1)(2.9)130,434 6.9 3.9 
    Mutual funds14,119 7.1 5.6 14,119 (10.2)(16.2)
Risk-weighted assets106,989 (0.9)106,989 8.0 
Ratios (%) and employees
RoTE19.7 (1.2)20.3 0.8 
Efficiency ratio41.9 2.2 40.8 (3.9)
NPL ratio1.02 0.17 1.02 0.25 
NPL coverage ratio37 0 37 (6)
Number of employees13,313 (2.2)13,313 4.5 
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
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•Information by segment
Wealth Management & Insurance
EUR million
/ Q1'26/ H1'25
Underlying income statementQ2'26%% excl. FXH1'26%% excl. FX
Net interest income340 7.9 7.4 655 (2.4)(1.4)
Net fee income442 (3.2)(3.8)898 10.5 11.2 
Gains (losses) on financial transactions 1
135 11.6 10.7 255 40.3 40.6 
Other operating income177 63.5 61.2 285 7.3 4.8 
Total income1,093 9.3 8.5 2,093 8.4 8.7 
Total costs(367)0.1 (0.6)(733)4.5 5.6 
Net operating income726 14.6 13.8 1,360 10.6 10.5 
Net loan-loss provisions2 — — (7)(66.1)(66.3)
Other gains (losses) and provisions4 — — 3 — — 
Profit before tax732 17.2 16.4 1,356 13.4 13.2 
Tax on profit(127)6.6 5.9 (246)(7.1)(7.0)
Profit from continuing operations605 19.7 18.8 1,110 19.2 19.0 
Net profit from discontinued operations— — — — — — 
Consolidated profit605 19.7 18.8 1,110 19.2 19.0 
Non-controlling interests(15)18.2 16.3 (27)7.8 5.4 
Underlying attributable profit to the parent590 19.7 18.9 1,083 19.5 19.3 
Activity metrics
Gross loans and advances to customers ²27,071 6.6 5.8 27,071 7.6 5.8 
Customer funds193,687 6.0 5.4 193,687 14.7 12.4 
    Customer deposits ³56,591 1.8 1.2 56,591 0.1 (1.0)
    Mutual funds137,096 7.9 7.2 137,096 22.1 19.1 
Risk-weighted assets18,020 (1.3)18,020 9.1 
Assets under management580,941 6.6 5.8 580,941 16.8 13.2 
Gross written premiums3,398 21.0 19.7 6,205 11.9 11.1 
Ratios (%), employees and customers
RoTE62.5 11.0 56.9 (3.0)
Efficiency ratio33.6 (3.1)35.0 (1.3)
NPL ratio1.17 (0.02)1.17 0.21 
NPL coverage ratio50 (7)50 (21)
Number of employees7,315 (0.1)7,315 (1.0)
Number of Private Banking customers (thousands) 4
302 6.6 302 4.7 
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
4. Affected by a perimeter change. On a like-for-like basis, year-on-year growth would be +11%.
January - June 2026
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•Information by segment
Payment Solutions
EUR million
/ Q1'26/ H1'25
Underlying income statementQ2'26%% excl. FXH1'26%% excl. FX
Net interest income37 (19.8)(23.1)82 2.3 (1.7)
Net fee income290 5.9 4.2 563 10.4 7.5 
Gains (losses) on financial transactions 1
0 — — 0 (99.9)(99.9)
Other operating income61 (4.4)(4.5)126 58.0 57.8 
Total income387 1.0 (0.7)771 20.2 17.1 
Total costs(337)4.9 3.8 (657)9.5 7.6 
Net operating income51 (19.0)(22.9)114 176.5 138.3 
Net loan-loss provisions(6)(52.8)(54.7)(20)85.1 80.5 
Other gains (losses) and provisions(1)— — (1)(85.6)(85.6)
Profit before tax43 (12.2)(16.8)92 326.6 230.4 
Tax on profit24 — — (2)10.4 (55.6)
Profit from continuing operations67 187.2 175.3 91 348.6 271.5 
Net profit from discontinued operations— — — — — — 
Consolidated profit67 187.2 175.3 91 348.6 271.5 
Non-controlling interests(9)134.5 135.0 (13)174.1 165.9 
Underlying attributable profit to the parent59 197.4 182.7 78 400.2 297.0 
Activity metrics
Gross loans and advances to customers ²1,106 (5.6)(7.5)1,106 (11.4)(18.0)
Customer funds1,876 5.5 5.5 1,876 87.9 87.9 
    Customer deposits ³1,876 5.5 5.5 1,876 87.9 87.9 
    Mutual funds— — — — — — 
Risk-weighted assets5,62118.5 5,621(9.2)
Ratios (%) and employees
EBITDA margin31.7 (1.7)32.6 3.8 
NPL ratio4.71 0.75 4.71 1.62 
NPL coverage ratio570 574 
Number of employees8,2130.1 8,2130.7 
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
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•Information by segment
Corporate Centre
EUR million
/ Q1'26/ H1'25
Underlying income statementQ2'26Q1'26%H1'26H1'25%
Net interest income(200)(138)44.8 (338)(232)45.9 
Net fee income(1)(6)(87.3)(6)(16)(60.6)
Gains (losses) on financial transactions 1
(259)(191)35.6 (450)(143)214.1 
Other operating income165 164 0.7 329 39 751.4 
Total income(295)(171)72.3 (466)(353)32.2 
Total costs(104)(103)1.7 (207)(214)(3.2)
Net operating income(399)(274)45.9 (673)(567)18.8 
Net loan-loss provisions0 2 (74.7)2 (197)— 
Other gains (losses) and provisions(51)(24)114.5 (75)(43)74.7 
Profit before tax(450)(296)52.1 (746)(807)(7.5)
Tax on profit65 155 (58.0)221 93 136.1 
Profit from continuing operations(385)(141)173.8 (526)(713)(26.3)
Net profit from discontinued operations— — — — — — 
Consolidated profit(385)(141)173.8 (526)(713)(26.3)
Non-controlling interests0 0 62.3 0 0 — 
Underlying attributable profit to the parent(385)(141)173.9 (525)(713)(26.4)
Balance sheet
Loans and advances to customers6,379 6,967 (8.4)6,379 7,208 (11.5)
Cash, central banks and credit institutions122,570 113,576 7.9 122,570 101,315 21.0 
Debt instruments17,962 12,034 49.3 17,962 10,556 70.2 
Other financial assets2,994 2,802 6.8 2,994 1,784 67.8 
Other asset accounts121,433 122,273 (0.7)121,433 179,007 (32.2)
Total assets271,337 257,652 5.3 271,337 299,870 (9.5)
Customer deposits1,501 1,360 10.4 1,501 1,841 (18.5)
Central banks and credit institutions30,909 29,650 4.2 30,909 22,262 38.8 
Marketable debt securities125,556 111,805 12.3 125,556 109,719 14.4 
Other financial liabilities934 2,860 (67.4)934 14 — 
Other liabilities accounts6,618 5,516 20.0 6,618 66,700 (90.1)
Total liabilities165,517 151,191 9.5 165,517 200,536 (17.5)
Total equity105,820 106,462 (0.6)105,820 99,334 6.5 
Memorandum items:
Gross loans and advances to customers 2
6,429 7,013 (8.3)6,429 7,365 (12.7)
Customer funds1,501 1,360 10.4 1,501 1,841 (18.5)
    Customer deposits 3
1,501 1,360 10.4 1,501 1,841 (18.5)
    Mutual funds— — — — — — 
Resources
Number of employees1,867 1,866 0.0 1,867 1,812 3.0 
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
January - June 2026
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•Information by segment
Secondary segments
Spain
EUR million
/ Q1'26/ H1'25
Underlying income statementQ2'26%H1'26%
Net interest income2,000 7.5 3,860 7.7 
Net fee income824 7.8 1,588 5.7 
Gains (losses) on financial transactions 1
16 (96.3)440 (23.0)
Other operating income387 272.5 491 7.2 
Total income3,227 2.4 6,380 4.3 
Total costs(1,063)(1.6)(2,142)(2.7)
Net operating income2,164 4.4 4,238 8.2 
Net loan-loss provisions(331)26.7 (592)(1.2)
Other gains (losses) and provisions(96)361.9 (117)38.8 
Profit before tax1,738 (3.0)3,529 9.2 
Tax on profit(489)(3.4)(995)2.2 
Profit from continuing operations1,249 (2.9)2,534 12.2 
Net profit from discontinued operations— — — — 
Consolidated profit1,249 (2.9)2,534 12.2 
Non-controlling interests(1)— (1)163.2 
Underlying attributable profit to the parent1,248 (2.9)2,534 12.2 
Balance sheet
Loans and advances to customers295,419 6.7 295,419 11.9 
Cash, central banks and credit institutions63,122 (16.6)63,122 (35.5)
Debt instruments134,989 3.1 134,989 40.7 
Other financial assets56,329 0.1 56,329 15.7 
Other asset accounts16,645 (5.0)16,645 (21.3)
Total assets566,503 1.6 566,503 7.4 
Customer deposits360,569 0.0 360,569 4.1 
Central banks and credit institutions67,692 19.5 67,692 35.8 
Marketable debt securities28,908 1.6 28,908 9.6 
Other financial liabilities68,510 (3.4)68,510 9.2 
Other liabilities accounts22,060 0.4 22,060 2.4 
Total liabilities547,739 1.7 547,739 8.1 
Total equity18,764 (1.6)18,764 (9.6)
Memorandum items:
Gross loans and advances to customers 2
251,026 2.6 251,026 8.0 
Customer funds438,012 2.3 438,012 8.2 
    Customer deposits 3
321,426 1.2 321,426 5.0 
    Mutual funds116,586 5.6 116,586 17.8 
Ratios (%), branches and customers
RoTE26.3 0.4 26.2 4.8 
Efficiency ratio32.9 (1.3)33.6 (2.4)
NPL ratio1.87 (0.07)1.87 (0.25)
NPL coverage ratio53 0 53 0 
Number of branches1,458 (9.3)1,458 (15.4)
Number of total customers (thousands)15,442 0.5 15,442 0.4 
Number of active customers (thousands)9,440 1.3 9,440 4.4 
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
60
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•Information by segment
UK
EUR million
/ Q1'26/ H1'25
Underlying income statementQ2'26%% excl. FXH1'26%% excl. FX
Net interest income1,453 17.7 17.5 2,687 5.7 8.8 
Net fee income117 25.9 25.7 26 25.7 29.6 
Gains (losses) on financial transactions 1
(11)(56.6)(56.8)(37)(45.5)(43.9)
Other operating income(67)(16.1)(16.3)(147)(1.4)1.5 
Total income1,491 22.1 21.9 2,713 8.8 12.0 
Total costs(777)16.6 16.3 (1,444)(4.9)(2.1)
Net operating income714 28.8 28.5 1,268 30.2 34.1 
Net loan-loss provisions(115)52.5 52.2 (191)69.4 74.4 
Other gains (losses) and provisions(52)33.0 32.7 (90)(9.1)(6.4)
Profit before tax547 24.4 24.1 987 29.5 33.4 
Tax on profit(141)17.2 17.0 (262)29.7 33.5 
Profit from continuing operations406 27.0 26.8 725 29.5 33.3 
Net profit from discontinued operations— — — — — — 
Consolidated profit406 27.0 26.8 725 29.5 33.3 
Non-controlling interests— — — — — — 
Underlying attributable profit to the parent406 27.0 26.8 725 29.5 33.3 
Balance sheet
Loans and advances to customers286,813 15.6 14.0 286,813 19.5 20.1 
Cash, central banks and credit institutions62,810 15.5 14.0 62,810 6.3 6.8 
Debt instruments13,156 25.9 24.2 13,156 0.8 1.3 
Other financial assets759 122.6 119.6 759 161.6 162.8 
Other asset accounts7,043 99.5 96.8 7,043 55.5 56.2 
Total assets370,582 17.0 15.4 370,582 16.9 17.5 
Customer deposits271,367 20.7 19.1 271,367 21.8 22.3 
Central banks and credit institutions20,171 2.7 1.3 20,171 (14.4)(14.0)
Marketable debt securities58,709 7.0 5.6 58,709 10.0 10.5 
Other financial liabilities3,446 10.3 8.8 3,446 25.7 26.2 
Other liabilities accounts2,598 38.8 37.0 2,598 32.5 33.1 
Total liabilities356,291 17.1 15.5 356,291 17.0 17.5 
Total equity14,291 13.7 12.2 14,291 14.8 15.3 
Memorandum items:
Gross loans and advances to customers 2
276,971 19.7 18.0 276,971 20.7 21.3 
Customer funds274,500 20.4 18.8 274,500 22.6 23.1 
    Customer deposits 3
266,554 21.1 19.5 266,554 23.2 23.7 
    Mutual funds7,946 0.7 (0.6)7,946 5.7 6.2 
Ratios (%), branches and customers
RoTE11.7 2.0 10.7 1.8 
Efficiency ratio52.1 (2.5)53.2 (7.7)
NPL ratio0.97 (0.07)0.97 (0.28)
NPL coverage ratio35 2 35 4 
Number of branches484 38.7 484 15.2 
Number of total customers (thousands)26,954 18.5 26,954 19.4 
Number of active customers (thousands)15,924 18.0 15,924 17.5 
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
January - June 2026
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•Information by segment
Portugal
EUR million
/ Q1'26/ H1'25
Underlying income statementQ2'26%H1'26%
Net interest income333 (1.7)672 (1.7)
Net fee income133 0.6 266 4.5 
Gains (losses) on financial transactions 1
7 (51.7)21 (46.5)
Other operating income(31)— (22)— 
Total income443 (10.4)937 (5.2)
Total costs(132)(1.1)(266)(0.6)
Net operating income311 (13.8)672 (6.9)
Net loan-loss provisions(10)(21.7)(22)— 
Other gains (losses) and provisions(10)4.6 (19)— 
Profit before tax292 (14.0)631 (13.6)
Tax on profit(70)(20.9)(159)(22.2)
Profit from continuing operations221 (11.6)472 (10.3)
Net profit from discontinued operations— — — — 
Consolidated profit221 (11.6)472 (10.3)
Non-controlling interests0 (92.3)0 (60.0)
Underlying attributable profit to the parent221 (11.5)471 (10.2)
Balance sheet
Loans and advances to customers42,640 1.3 42,640 7.4 
Cash, central banks and credit institutions2,638 (32.0)2,638 (34.1)
Debt instruments16,331 0.0 16,331 7.7 
Other financial assets1,372 6.4 1,372 16.8 
Other asset accounts951 3.2 951 (8.7)
Total assets63,932 (0.9)63,932 4.7 
Customer deposits41,947 1.5 41,947 5.7 
Central banks and credit institutions8,430 (25.4)8,430 (4.9)
Marketable debt securities6,705 20.2 6,705 20.1 
Other financial liabilities285 (7.8)285 (17.1)
Other liabilities accounts3,399 9.8 3,399 (0.4)
Total liabilities60,766 (1.4)60,766 5.0 
Total equity3,166 8.9 3,166 (1.0)
Memorandum items:
Gross loans and advances to customers 2
43,296 1.1 43,296 7.1 
Customer funds47,794 1.9 47,794 6.5 
    Customer deposits 3
41,947 1.5 41,947 5.7 
    Mutual funds5,847 4.7 5,847 12.4 
Ratios (%), branches and customers
RoTE28.6 (2.0)29.7 (1.4)
Efficiency ratio29.8 2.8 28.3 1.3 
NPL ratio1.77 (0.17)1.77 (0.37)
NPL coverage ratio82 (1)82 1 
Number of branches281 (5.4)281 (24.7)
Number of total customers (thousands)2,963 (0.1)2,963 0.0 
Number of active customers (thousands)1,957 0.3 1,957 1.9 
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
62
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•Information by segment
Openbank Europe
EUR million
/ Q1'26/ H1'25
Underlying income statementQ2'26%% excl. FXH1'26%% excl. FX
Net interest income1,211 0.6 0.2 2,415 6.6 6.2 
Net fee income195 2.5 2.4 385 3.4 3.5 
Gains (losses) on financial transactions 1
(20)89.6 89.8 (30)46.7 47.1 
Other operating income114 9.0 8.7 219 5.0 5.9 
Total income1,501 0.8 0.5 2,989 5.7 5.5 
Total costs(663)(6.2)(6.5)(1,370)(6.9)(7.0)
Net operating income837 7.2 6.8 1,619 19.4 19.1 
Net loan-loss provisions(347)1.2 1.0 (689)11.3 11.2 
Other gains (losses) and provisions(58)(77.4)(77.5)(314)— — 
Profit before tax433 136.3 134.7 616 (15.3)(15.6)
Tax on profit(148)123.2 122.3 (215)2.8 2.4 
Profit from continuing operations285 143.7 141.7 402 (22.5)(22.9)
Net profit from discontinued operations— — — — — — 
Consolidated profit285 143.7 141.7 402 (22.5)(22.9)
Non-controlling interests(77)6.9 7.0 (149)21.5 21.6 
Underlying attributable profit to the parent208 363.2 354.5 253 (36.2)(36.6)
Balance sheet
Loans and advances to customers142,447 2.0 1.9 142,447 2.3 1.9 
Cash, central banks and credit institutions15,581 (3.7)(3.9)15,581 (11.9)(12.2)
Debt instruments7,409 1.7 1.8 7,409 (8.7)(8.9)
Other financial assets74 (55.9)(55.9)74 (29.6)(29.6)
Other asset accounts12,710 5.5 5.4 12,710 8.2 7.8 
Total assets178,221 1.6 1.6 178,221 0.7 0.4 
Customer deposits82,924 1.7 1.8 82,924 (1.3)(1.7)
Central banks and credit institutions29,219 6.9 6.3 29,219 (6.3)(6.5)
Marketable debt securities44,523 (0.8)(0.8)44,523 11.9 11.7 
Other financial liabilities2,468 11.7 11.7 2,468 (4.5)(4.6)
Other liabilities accounts6,345 2.7 2.6 6,345 11.6 11.2 
Total liabilities165,479 2.1 2.0 165,479 1.4 1.0 
Total equity12,743 (3.7)(3.6)12,743 (7.2)(7.7)
Memorandum items:
Gross loans and advances to customers 2
145,717 1.9 1.9 145,717 2.4 2.0 
Customer funds88,644 2.2 2.2 88,644 (0.1)(0.6)
    Customer deposits 3
82,924 1.7 1.8 82,924 (1.3)(1.7)
    Mutual funds5,719 9.2 9.2 5,719 19.9 19.9 
Ratios (%), branches and customers
RoTE7.9 7.1 4.3 (2.6)
Efficiency ratio44.2 (3.3)45.8 (6.2)
NPL ratio2.57 (0.07)2.57 (0.05)
NPL coverage ratio88 0 88 6 
Number of branches293 (0.3)293 (1.3)
Number of total customers (thousands)20,263 1.1 20,263 3.5 
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
January - June 2026
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•Information by segment
US
EUR million
/ Q1'26/ H1'25
Underlying income statementQ2'26%% excl. FXH1'26%% excl. FX
Net interest income1,475 2.8 2.2 2,909 (1.4)5.4 
Net fee income386 4.5 3.9 755 11.3 18.9 
Gains (losses) on financial transactions 1
117 (19.8)(20.3)263 53.0 63.4 
Other operating income50 79.9 79.0 77 (39.7)(35.6)
Total income2,027 2.6 1.9 4,004 2.0 8.9 
Total costs(896)(4.4)(5.0)(1,833)(6.9)(0.5)
Net operating income1,131 8.8 8.1 2,171 10.8 18.4 
Net loan-loss provisions(427)(8.2)(8.8)(892)(13.2)(7.3)
Other gains (losses) and provisions4 — — (5)(82.2)(81.0)
Profit before tax708 25.1 24.4 1,274 41.0 50.6 
Tax on profit(148)7.4 6.8 (285)339.5 369.5 
Profit from continuing operations560 30.7 30.0 989 17.9 25.9 
Net profit from discontinued operations— — — — — — 
Consolidated profit560 30.7 30.0 989 17.9 25.9 
Non-controlling interests— — — — — — 
Underlying attributable profit to the parent560 30.7 30.0 989 17.9 25.9 
Balance sheet
Loans and advances to customers153,078 9.1 8.1 153,078 24.8 21.4 
Cash, central banks and credit institutions21,170 (10.4)(11.2)21,170 (24.6)(26.7)
Debt instruments34,647 1.7 0.8 34,647 (9.2)(11.7)
Other financial assets3,996 18.9 17.8 3,996 75.0 70.1 
Other asset accounts10,165 (2.0)(2.9)10,165 (21.5)(23.6)
Total assets223,056 5.3 4.4 223,056 9.3 6.3 
Customer deposits133,484 8.8 7.9 133,484 17.2 13.9 
Central banks and credit institutions37,799 0.6 (0.3)37,799 0.2 (2.6)
Marketable debt securities25,747 (1.7)(2.5)25,747 (10.2)(12.6)
Other financial liabilities7,466 4.6 3.7 7,466 28.2 24.7 
Other liabilities accounts3,099 12.0 11.0 3,099 0.8 (2.0)
Total liabilities207,594 5.8 4.8 207,594 9.7 6.7 
Total equity15,463 0.1 (0.8)15,463 4.2 1.4 
Memorandum items:
Gross loans and advances to customers 2
115,701 0.7(0.2)115,701 9.26.2
Customer funds103,278 1.80.9103,278 6.53.6
    Customer deposits 3
86,157 0.4(0.5)86,157 4.01.2
    Mutual funds17,121 9.58.517,121 20.917.5
Ratios (%), branches and customers
RoTE14.7 3.1 13.2 2.2 
Efficiency ratio44.2 (3.2)45.8 (4.3)
NPL ratio4.43 (0.21)4.43 (0.17)
NPL coverage ratio53 (1)53 (10)
Number of branches372 (1.3)372 (7.7)
Number of total customers (thousands)4,288 (1.9)4,288 (4.2)
Number of active customers (thousands)4,109 (1.2)4,109 (4.0)
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
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•Information by segment
Mexico
EUR million
/ Q1'26/ H1'25
Underlying income statementQ2'26%% excl. FXH1'26%% excl. FX
Net interest income1,295 7.2 5.5 2,502 11.8 4.5 
Net fee income405 1.6 0.0 804 16.7 9.0 
Gains (losses) on financial transactions 1
107 44.3 42.3 182 33.1 24.4 
Other operating income(52)110.1 107.5 (76)42.0 32.7 
Total income1,756 6.0 4.3 3,412 13.4 5.9 
Total costs(707)3.9 2.2 (1,388)5.9 (1.0)
Net operating income1,048 7.4 5.7 2,024 19.1 11.3 
Net loan-loss provisions(366)1.9 0.2 (725)19.5 11.6 
Other gains (losses) and provisions(9)(20.4)(21.8)(19)— — 
Profit before tax674 11.2 9.5 1,280 17.1 9.4 
Tax on profit(199)7.7 6.0 (383)28.9 20.4 
Profit from continuing operations476 12.7 11.0 897 12.7 5.3 
Net profit from discontinued operations— — — — — — 
Consolidated profit476 12.7 11.0 897 12.7 5.3 
Non-controlling interests0 (82.8)(83.8)(1)(72.4)(74.2)
Underlying attributable profit to the parent475 12.8 11.1 897 12.9 5.5 
Balance sheet
Loans and advances to customers51,531 3.0 (1.1)51,531 19.9 8.0 
Cash, central banks and credit institutions15,731 18.6 14.0 15,731 46.5 32.0 
Debt instruments33,515 0.7 (3.2)33,515 25.6 13.1 
Other financial assets4,782 (7.0)(10.6)4,782 15.9 4.5 
Other asset accounts5,673 (1.7)(5.6)5,673 5.5 (5.0)
Total assets111,231 3.5 (0.6)111,231 23.7 11.5 
Customer deposits60,829 6.6 2.4 60,829 25.7 13.2 
Central banks and credit institutions17,072 6.0 1.9 17,072 19.6 7.7 
Marketable debt securities10,725 8.3 4.1 10,725 15.8 4.3 
Other financial liabilities10,195 (15.3)(18.6)10,195 38.6 24.9 
Other liabilities accounts3,101 (7.4)(11.0)3,101 13.3 2.1 
Total liabilities101,921 3.5 (0.5)101,921 24.3 11.9 
Total equity9,310 2.9 (1.1)9,310 18.1 6.4 
Memorandum items:
Gross loans and advances to customers 2
53,145 3.2 (0.9)53,145 19.9 8.0 
Customer funds73,257 4.8 0.7 73,257 17.5 5.9 
    Customer deposits 3
47,819 2.4 (1.6)47,819 15.9 4.4 
    Mutual funds25,439 9.7 5.4 25,439 20.7 8.8 
Ratios (%), branches and customers
RoTE21.5 1.7 20.7 (0.3)
Efficiency ratio40.3 (0.8)40.7 (2.8)
NPL ratio2.97 0.20 2.97 0.04 
NPL coverage ratio100 (3)100 1 
Number of branches1,264 (0.2)1,264 (5.1)
Number of total customers (thousands)23,538 2.5 23,538 8.5 
Number of active customers (thousands)12,889 4.2 12,889 14.9 
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
January - June 2026
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•Information by segment
Brazil
EUR million
/ Q1'26/ H1'25
Underlying income statementQ2'26%% excl. FXH1'26%% excl. FX
Net interest income2,611 6.3 1.6 5,067 6.9 2.1 
Net fee income819 2.8 (1.8)1,615 4.3 (0.4)
Gains (losses) on financial transactions 1
(92)688.7 668.2 (104)650.8 617.3 
Other operating income(1)— — 16 (51.4)(53.5)
Total income3,337 2.4 (2.2)6,595 4.5 (0.1)
Total costs(1,385)7.9 3.1 (2,669)8.2 3.3 
Net operating income1,952 (1.1)(5.7)3,926 2.2 (2.4)
Net loan-loss provisions(1,266)8.3 3.5 (2,436)6.4 1.6 
Other gains (losses) and provisions(29)532.0 515.0 (33)— — 
Profit before tax657 (17.8)(22.0)1,457 (6.1)(10.3)
Tax on profit(50)(75.2)(78.1)(251)(44.9)(47.4)
Profit from continuing operations607 1.5 (3.2)1,206 10.1 5.1 
Net profit from discontinued operations— — — — — — 
Consolidated profit607 1.5 (3.2)1,206 10.1 5.1 
Non-controlling interests(57)(0.4)(5.1)(113)13.8 8.8 
Underlying attributable profit to the parent551 1.7 (3.0)1,093 9.7 4.8 
Balance sheet
Loans and advances to customers94,142 2.0 0.3 94,142 11.2 2.7 
Cash, central banks and credit institutions59,854 (1.3)(2.9)59,854 15.9 7.0 
Debt instruments54,535 10.5 8.7 54,535 21.3 12.1 
Other financial assets7,806 (38.9)(39.9)7,806 (15.4)(21.9)
Other asset accounts16,702 5.1 3.4 16,702 11.8 3.3 
Total assets233,039 0.9 (0.7)233,039 13.4 4.8 
Customer deposits108,127 8.0 6.3 108,127 19.1 10.0 
Central banks and credit institutions35,686 (1.8)(3.4)35,686 5.7 (2.4)
Marketable debt securities31,977 1.2 (0.4)31,977 20.2 11.1 
Other financial liabilities33,424 (16.4)(17.8)33,424 3.1 (4.8)
Other liabilities accounts6,446 5.1 3.4 6,446 4.4 (3.6)
Total liabilities215,661 0.7 (0.9)215,661 13.7 5.0 
Total equity17,378 3.0 1.4 17,378 10.5 2.0 
Memorandum items:
Gross loans and advances to customers 2
99,966 1.8 0.2 99,966 11.9 3.4 
Customer funds152,212 5.2 3.5 152,212 16.6 7.7 
    Customer deposits 3
92,588 7.0 5.3 92,588 16.8 7.9 
    Mutual funds59,623 2.4 0.8 59,623 16.3 7.4 
Ratios (%), branches and customers
RoTE14.2 (0.6)14.5 0.3 
Efficiency ratio41.5 2.1 40.5 1.4 
NPL ratio7.89 0.67 7.89 1.35 
NPL coverage ratio72 (7)72 (10)
Number of branches1,515 (2.3)1,515 (19.8)
Number of total customers (thousands)76,189 1.3 76,189 6.3 
Number of active customers (thousands)34,381 0.6 34,381 2.4 
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
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•Information by segment
Chile
EUR million
/ Q1'26/ H1'25
Underlying income statementQ2'26%% excl. FXH1'26%% excl. FX
Net interest income608 25.3 26.4 1,093 9.0 8.9 
Net fee income146 (8.6)(7.7)306 3.1 3.0 
Gains (losses) on financial transactions 1
58 (29.8)(29.0)140 16.9 16.7 
Other operating income(2)— — 0 (94.6)(94.6)
Total income809 11.1 12.1 1,538 9.1 8.9 
Total costs(236)6.6 7.6 (457)(6.5)(6.6)
Net operating income573 13.1 14.1 1,081 17.3 17.2 
Net loan-loss provisions(147)7.7 8.6 (284)(3.4)(3.5)
Other gains (losses) and provisions(6)(35.9)(35.1)(16)227.6 227.3 
Profit before tax420 16.4 17.4 781 25.5 25.3 
Tax on profit(53)(16.3)(15.4)(116)26.5 26.3 
Profit from continuing operations367 23.3 24.4 666 25.3 25.2 
Net profit from discontinued operations— — — — — — 
Consolidated profit367 23.3 24.4 666 25.3 25.2 
Non-controlling interests(108)22.7 23.7 (196)20.9 20.8 
Underlying attributable profit to the parent259 23.6 24.6 469 27.2 27.1 
Balance sheet
Loans and advances to customers41,154 2.2 0.3 41,154 7.4 3.2 
Cash, central banks and credit institutions6,478 (1.5)(3.3)6,478 44.7 39.1 
Debt instruments10,508 13.5 11.4 10,508 26.8 21.8 
Other financial assets10,925 (4.1)(5.9)10,925 (2.7)(6.5)
Other asset accounts2,289 (3.1)(4.9)2,289 13.5 9.0 
Total assets71,354 2.2 0.3 71,354 10.9 6.6 
Customer deposits31,496 7.8 5.8 31,496 15.4 10.9 
Central banks and credit institutions10,401 2.9 1.0 10,401 20.6 15.9 
Marketable debt securities9,373 (1.7)(3.5)9,373 (3.8)(7.6)
Other financial liabilities12,108 (3.2)(5.0)12,108 3.3 (0.8)
Other liabilities accounts2,112 (16.0)(17.6)2,112 4.9 0.8 
Total liabilities65,489 2.5 0.6 65,489 10.2 5.9 
Total equity5,865 (1.7)(3.5)5,865 18.8 14.2 
Memorandum items:
Gross loans and advances to customers 2
42,369 2.5 0.6 42,369 8.8 4.5 
Customer funds44,833 6.8 4.9 44,833 14.8 10.3 
    Customer deposits 3
30,335 6.4 4.4 30,335 14.0 9.5 
    Mutual funds14,498 7.8 5.8 14,498 16.5 12.0 
Ratios (%), branches and customers
RoTE24.8 5.6 22.0 2.5 
Efficiency ratio29.2 (1.2)29.7 (4.9)
NPL ratio5.79 0.04 5.79 0.36 
NPL coverage ratio47 0 47 (2)
Number of branches223 (2.2)223 (3.5)
Number of total customers (thousands)4,826 1.4 4,826 6.9 
Number of active customers (thousands)2,693 (0.1)2,693 1.3 
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
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•Information by segment
Argentina
EUR million
/ Q1'26/ H1'25
Underlying income statementQ2'26%H1'26%
Net interest income562 (6.4)1,162 23.8 
Net fee income232 5.7 452 15.9 
Gains (losses) on financial transactions 1
70 50.4 116 (4.1)
Other operating income(156)(29.2)(376)23.1 
Total income708 9.6 1,355 18.3 
Total costs(255)(3.3)(518)(0.5)
Net operating income454 18.4 837 34.0 
Net loan-loss provisions(265)(18.9)(592)183.2 
Other gains (losses) and provisions(8)(48.5)(23)2.3 
Profit before tax180 342.3 221 (43.6)
Tax on profit(38)— (27)(79.3)
Profit from continuing operations142 172.9 194 (26.0)
Net profit from discontinued operations— — — — 
Consolidated profit142 172.9 194 (26.0)
Non-controlling interests0 194.8 0 (39.3)
Underlying attributable profit to the parent142 172.9 194 (26.0)
Balance sheet
Loans and advances to customers9,012 4.1 9,012 4.7 
Cash, central banks and credit institutions3,751 (6.3)3,751 (8.3)
Debt instruments4,284 32.0 4,284 51.9 
Other financial assets55 11.3 55 (19.3)
Other asset accounts1,329 7.3 1,329 38.1 
Total assets18,431 7.2 18,431 11.4 
Customer deposits12,012 7.6 12,012 4.7 
Central banks and credit institutions983 (10.0)983 65.4 
Marketable debt securities316 72.7 316 5.7 
Other financial liabilities1,604 26.8 1,604 47.5 
Other liabilities accounts504 (17.2)504 (1.8)
Total liabilities15,419 7.7 15,419 10.4 
Total equity3,012 4.6 3,012 16.8 
Memorandum items:
Gross loans and advances to customers 2
9,896 4.2 9,896 10.1 
Customer funds20,520 9.7 20,520 15.5 
    Customer deposits 3
12,012 7.6 12,012 4.7 
    Mutual funds8,507 12.9 8,507 35.4 
Ratios (%), branches and customers
RoTE20.4 13.413.9(7.9)
Efficiency ratio36.0 (4.8)38.2(7.2)
NPL ratio9.93 (0.12)9.936.17
NPL coverage ratio89 (1)89(32)
Number of branches366 (3.7)366(9.6)
Number of total customers (thousands)5,580 2.15,5804.9
Number of active customers (thousands)3,719 1.83,7191.4
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.

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•Information by segment
Rest of the Group
EUR million
/ Q1'26/ H1'25
Underlying income statementQ2'26%% excl. FXH1'26%% excl. FX
Net interest income344 2.1 2.8 682 30.5 31.2 
Net fee income237 (0.9)(0.6)476 11.3 12.3 
Gains (losses) on financial transactions 1
89 (13.0)(14.5)190 72.6 73.7 
Other operating income32 214.0 224.3 42 36.1 36.9 
Total income702 2.0 2.3 1,391 27.4 28.3 
Total costs(508)24.5 25.0 (916)11.4 12.3 
Net operating income194 (30.8)(30.8)474 76.3 77.0 
Net loan-loss provisions(76)(3.0)(1.3)(155)38.5 35.9 
Other gains (losses) and provisions1 — — (4)(86.9)(86.9)
Profit before tax119 (39.8)(40.0)316 144.7 151.0 
Tax on profit(28)(42.6)(43.6)(77)84.0 83.8 
Profit from continuing operations91 (38.8)(38.8)239 173.9 184.5 
Net profit from discontinued operations— — — — — — 
Consolidated profit91 (38.8)(38.8)239 173.9 184.5 
Non-controlling interests(9)591.9 507.4 (10)— — 
Underlying attributable profit to the parent82 (44.2)(44.0)229 150.4 160.4 
Balance sheet
Loans and advances to customers26,546 4.9 2.5 26,546 13.9 8.0 
Cash, central banks and credit institutions11,404 (23.2)(24.1)11,404 68.6 62.4 
Debt instruments14,323 4.3 3.3 14,323 171.2 162.4 
Other financial assets3,140 42.5 39.7 3,140 21.0 13.5 
Other asset accounts3,630 9.1 8.3 3,630 15.3 13.2 
Total assets59,043 (0.6)(2.2)59,043 43.6 37.2 
Customer deposits29,506 (0.4)(2.1)29,506 36.1 30.6 
Central banks and credit institutions13,944 (8.5)(10.2)13,944 53.6 42.7 
Marketable debt securities5,529 (2.2)(2.7)5,529 115.7 112.9 
Other financial liabilities3,576 32.7 30.0 3,576 54.4 48.9 
Other liabilities accounts1,683 17.5 15.8 1,683 33.0 29.4 
Total liabilities54,238 (0.8)(2.3)54,238 47.0 40.3 
Total equity4,805 0.7 (0.9)4,805 14.3 9.7 
Memorandum items:
Gross loans and advances to customers 2
27,047 4.9 2.5 27,047 13.9 8.0 
Customer funds52,743 6.2 5.0 52,743 41.2 37.3 
    Customer deposits 3
29,278 (0.4)(2.1)29,278 36.5 30.9 
    Mutual funds23,465 15.7 15.3 23,465 47.6 46.3 
1. Includes exchange differences.
2. Excluding reverse repos.
3. Excluding repos.
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•Alternative performance measures
Alternative performance measures (APMs)
In addition to the financial information prepared under IFRS, this consolidated directors’ report contains financial measures that constitute alternative performance measures (APMs) to comply with the guidelines on alternative performance measures issued by the European Securities and Markets Authority on 5 October 2015 and non-IFRS measures.
The financial measures contained in this consolidated directors’ report that qualify as APMs and non-IFRS measures have been calculated using our financial information but are not defined or detailed in the applicable financial information framework or under IFRS and therefore have neither been audited nor are susceptible to being fully audited.
We use these APMs and non-IFRS measures when planning, monitoring and evaluating our performance. We consider these APMs and non-IFRS financial measures to be useful metrics for management and investors to facilitate operating performance comparisons from period to period. While we believe that these APMs and non-IFRS financial measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant as a substitute of IFRS measures. In addition, the way in which Santander defines and calculates these APMs and non-IFRS measures may differ from the calculations used by other companies with similar measures and, therefore, may not be comparable.
The APMs and non-IFRS measures we use in this document can be categorized as follows:
Underlying results
In addition to IFRS results measures, we present some results measures which are non-IFRS and which we refer to as underlying measures. These measures allow in our view a better year-on-year comparability given that they exclude items outside the ordinary performance of our business (e.g. capital gains, write-downs, impairment of goodwill) or certain line items have been reclassified in the underlying ("adjusted") income statement, as their impact on profit is zero, to facilitate comparisons with prior quarters and better understand the trends in the business.
In addition, in the 'Financial information by segment' section, covering the primary and secondary segments, results are presented only on an underlying basis in accordance with IFRS 8, and reconciled on an aggregate basis to our IFRS consolidated results to the consolidated financial statements, which are set out below.
As a result of the announcement of the Poland disposal on 5 May 2025 and in accordance with IFRS 5 requirements, in the statutory income statement, results associated with the business subject to the Poland disposal are reported under a single line in the consolidated income statement — 'profit/(loss) after tax from discontinued operations' — for results corresponding to 2025. Consequently, the results affected by the Poland disposal perimeter are excluded line by line from the breakdown of continuing operations. In Q1 2026, this line 'profit/(loss) after tax from discontinued operations' recorded the capital gain from the completion of the Poland disposal.
The Group's underlying income statement records the results related to the business subject to the Poland disposal for all periods in 2025 and the capital gain from the completion of the Poland disposal in Q1 2026 in a single line item, 'non-recurring items'. The impacts recorded in this line are therefore excluded from the Group's underlying profit, thereby enabling a consistent comparison.
From Q2 2026, there no additional impacts from the Poland disposal.
Following the completion of the TSB acquisition, TSB results have been included line by line in both the statutory and underlying income statements from May 2026.
However, in the underlying income statement, the restructuring costs associated with this transaction were recorded under ‘non-recurring items’, as they are costs associated with M&A activity and, therefore, are excluded from the Group’s underlying attributable profit.



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•Alternative performance measures
Reconciliation of underlying results to statutory results
EUR million
January-June 2026
Statutory resultsAdjustmentsUnderlying results
Net interest income22,711 — 22,711 
Net fee income6,851 — 6,851 
Gains (losses) on financial transactions 1
732 — 732 
Other operating income528 25 553 
Total income30,822 25 30,847 
Total costs(12,535)(676)(13,211)
Net operating income18,287 (651)17,636 
Net loan-loss provisions(6,574)— (6,574)
Other gains (losses) and provisions(1,752)1,037 (715)
Profit before tax9,961 386 10,347 
Tax on profit(2,442)(107)(2,549)
Profit from continuing operations7,519 279 7,798 
Net profit from discontinued operations1,895 (1,895)— 
Consolidated profit9,414 (1,616)7,798 
Non-controlling interests(441)(29)(470)
Profit attributable to the parent8,973 (1,645)7,328 
1. Includes exchange differences.

Explanation of adjustments corresponding to 2026 results:
•Certain charges recorded in the statutory account under the line items that comprise 'other gains (losses) and provisions' are presented in the underlying income statement under the 'total costs' line item. These are mainly related to recurring operating charges, primarily related to labour and legal processes, amounting to EUR 676 million.
•In the statutory income statement, the EUR 1,895 million capital gain resulting from the completion of the Poland disposal in Q1 2026 was recorded in the 'profit/(loss) after tax from discontinued operations' line item. However, in the underlying income statement, said capital gain is excluded from underlying profit.
•In the statutory income statement, EUR 250 million (net of tax) of restructuring costs associated with the TSB acquisition in Q2 2026 were recorded in the 'provisions or reversal of provisions' line item, aggregated in 'other gains (losses) and provisions'. However, in the underlying income statement, these costs have been excluded from underlying profit.
•In Q2 2026, an additional provision totalling EUR 39 million, net of tax and non-controlling interests, was recorded for or potential complaints related to motor finance dealer commissions in the UK associated with our joint ventures. In the underlying income statement, this provision has been reclassified from a line item that is aggregated within ‘other operating income’, from 'tax on profit' and from 'non-controlling interests' to 'other gains (losses) and provisions', thereby recording the full amount in aggregate in a single line item.
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•Alternative performance measures
Reconciliation of underlying results to statutory results
EUR million
January-June 2025
Statutory resultsAdjustmentsUnderlying results
Net interest income21,211 26 21,237 
Net fee income6,342 (31)6,311 
Gains (losses) on financial transactions 1
1,032 (6)1,026 
Other operating income393 (1)392 
Total income28,978 (12)28,966 
Total costs(12,398)(853)(13,251)
Net operating income16,580 (865)15,715 
Net loan-loss provisions(6,525)467 (6,058)
Other gains (losses) and provisions(951)632 (319)
Profit before tax9,104 234 9,338 
Tax on profit(2,367)(210)(2,577)
Profit from continuing operations6,737 24 6,761 
Net profit from discontinued operations726 (726)— 
Consolidated profit7,463 (702)6,761 
Non-controlling interests(630)246 (384)
Profit attributable to the parent6,833 (456)6,377 
1. Includes exchange differences.

Explanation of adjustments corresponding to 2025 results:
•In the statutory income statement, results associated with the business subject to the Poland disposal are reported in the 'profit/(loss) after tax from discontinued operations' line item. However, in the underlying income statement, the results related to the business subject to the Poland disposal are excluded from underlying profit.
•Certain charges recorded in the statutory account under the line items that comprise 'other gains (losses) and provisions' are presented in the underlying income statement under the 'total costs' line item. These are mainly related to recurring operating charges, primarily related to labour and legal processes, amounting to EUR 865 million.
•A capital gain, that falls outside the ordinary course of our business, in Q2 2025 of EUR 231 million from the sale of Santander’s remaining 30.5% stake in CACEIS.
•A one-off charge of EUR 467 million in Q2 2025 (EUR 231 million, net of tax and minority interests), which strengthened the balance sheet after having updated macroeconomic parameters in Brazil’s credit provisioning models.

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•Alternative performance measures
Ratios
All underlying profitability, efficiency, credit quality and other metrics included in this 'Alternative performance measures' section have been calculated in all the periods in 2025 excluding business affected by the Poland disposal, in line with the underlying income statement, unless indicated otherwise.
Profitability and efficiency ratios
The purpose of the profitability ratios is to measure the ratio of profit to equity, to tangible equity, to assets and to risk-weighted assets, while the efficiency ratio measures the amount of costs needed to generate revenue. The results related to activity in Poland affected by the Poland disposal are recorded in the 'non-recurring items' line within the underlying income statement. Profitability ratios are therefore also presented on an underlying basis.

RatioFormulaRelevance of the metric
RoEProfit attributable to the parent (annualized)This ratio measures the return that shareholders obtain on the funds invested in the bank and as such measures the bank’s ability to pay shareholders.
(Return on Equity)
   Average stockholders’ equity 1 (excl. minority interests)
Underlying RoEUnderlying profit attributable to the parent (annualized)This ratio measures the return that shareholders obtain on the funds invested in the bank excluding results from operations outside the ordinary course of business.
   Average stockholders’ equity 1 (excl. minority interests)
RoTE
Profit attributable to the parent minus AT1
costs (annualized) 2
This indicator is used to assess the profitability of a company as a percentage of its tangible equity, deducting AT1 issuance costs from the numerator. It is measured as the return that shareholders receive as a percentage of the funds invested in the bank less intangible assets.
(Return on Tangible Equity)
Average stockholders' equity 1 (excl. minority interests) - intangible assets
Underlying RoTE
Underlying profit attributable to the parent minus AT1 costs (annualized) 2
As with RoTE, this indicator is used to assess the profitability of the tangible equity of a company, deducting AT1 issuance costs from the numerator, but excluding results from operations outside the ordinary course of business (i.e. arising from underlying activities).
Average stockholders' equity 1 (excl. minority interests) - intangible assets
RoAConsolidated profit (annualized)This metric measures the profitability of a company as a percentage of its total assets. It is an indicator that reflects the efficiency of the bank’s total assets in generating profit over a given period.
(Return on Assets)Average total assets
Underlying RoAUnderlying consolidated profit (annualized)This metric measures the profitability of a company as a percentage of its total assets excluding results from operations outside the ordinary course of business. It is an indicator that reflects the efficiency of the bank’s total assets in generating underlying profit over a given period.
Average total assets
RoRWAConsolidated profit (annualized)The return adjusted for risk is a derivative of the RoA metric. The difference is that RoRWA measures profit in relation to the bank’s risk-weighted assets.
(Return on Risk-Weighted Assets)Average risk-weighted assets
Underlying RoRWAUnderlying consolidated profit (annualized)This relates the underlying consolidated profit (excluding results from operations outside the ordinary course of business) to the Group’s risk-weighted assets.
Average risk-weighted assets
Efficiency
Total costs 3
One of the most commonly used indicators when comparing productivity of different financial entities. It measures the amount of resources used to generate the bank’s total income.
(Cost-to-income)Total income
1.Stockholders’ equity = Capital and Reserves + Accumulated other comprehensive income + Profit attributable to the parent + Dividends.
2.Excluding the adjustment to the valuation of goodwill, since they are not considered in the denominator, we believe this calculation is more correct.
3.Total costs = Administrative expenses + Amortizations + Other operating costs.
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•Alternative performance measures
Profitability and efficiency 1 2 3 (EUR million and %)
Q2'26Q1'26H1'26H1'25
RoE13.7%15.1%15.1%13.6%
Profit attributable to the parent (annualized)14,82616,13516,30213,665
Average stockholders' equity (excluding minority interests)108,548107,148107,848100,703
Underlying RoE13.9%13.3%13.6%12.7%
Profit attributable to the parent (annualized)14,82616,13516,30213,665
(-) Non-recurring items(250)1,8951,645913
Underlying profit attributable to the parent (annualized)15,07614,24014,65812,752
Average stockholders' equity (excluding minority interests)108,548107,148107,848100,703
RoTE15.8%17.3%17.4%16.0%
Profit attributable to the parent (annualized)14,82616,13516,30213,665
(-) AT1 costs (annualized)620654637620
(-) Goodwill impairment———(1)
Profit attributable to the parent minus AT1 costs (annualized, excluding goodwill impairment)14,20615,48115,66613,046
Average stockholders' equity (excluding minority interests)108,548107,148107,848100,703
(-) Average intangible assets18,37517,47817,92719,030
Average stockholders' equity (excl. minority interests) - intangible assets90,17389,67089,92281,673
Underlying RoTE16.0%15.2%15.6%14.9%
Profit attributable to the parent (annualized)14,82616,13516,30213,665
(-) AT1 costs (annualized)620654637620
(-) Goodwill impairment———(1)
(-) Non-recurring items(250)1,8951,645913
Underlying profit attributable to the parent minus AT1 costs (annualized, excluding goodwill impairment)14,45613,58614,02112,133
Average stockholders' equity (excluding minority interests)108,548107,148107,848100,703
(-) Average intangible assets18,37517,47817,92719,030
Average stockholders' equity (excl. minority interests) - intangible assets90,17389,67089,92281,673
RoA0.82%0.92%0.91%0.81%
Consolidated profit (annualized)15,79817,01117,21314,951
Average total assets1,923,4621,847,3671,885,4151,835,466
Underlying RoA0.84%0.82%0.83%0.77%
Consolidated profit (annualized)15,79817,01117,21314,951
(-) Adjustments to consolidated profit for activity outside the ordinary course of business(279)1,8951,6161,430
Underlying consolidated profit (annualized)16,07715,11715,59713,521
Average total assets ⁴1,923,4621,847,3671,885,4151,764,578
RoRWA2.56%2.80%2.81%2.35%
Consolidated profit (annualized)15,79817,01117,21314,951
Average risk-weighted assets ⁵617,486607,147612,316635,445
Underlying RoRWA2.60%2.49%2.55%2.23%
Consolidated profit (annualized)15,79817,01117,21314,951
(-) Adjustments to consolidated profit for activity outside the ordinary course of business(279)1,8951,6161,430
Underlying consolidated profit (annualized)16,07715,11715,59713,521
Average risk-weighted assets ⁴ ⁵617,486607,147612,316607,358
Efficiency ratio42.8%42.8%42.8%45.7%
Operating expenses6,4056,13012,53512,398
Adjustments to operating expenses in the underlying income statement322354676853
Underlying total costs6,7276,48413,21113,251
Total income15,68215,14030,82228,978
Adjustments to total income in the underlying income statement25—25(12)
Underlying total income15,70715,14030,84728,966
1.Averages included in the RoE, RoTE, RoA and RoRWA denominators are calculated using the monthly average over the period, which we believe should not differ materially from using daily balances.
2.For periods less than one year, and if there are results outside the ordinary course of our business, the profit used to calculate RoE and RoTE is the annualized underlying profit, to which said results are added without annualizing. However, in 2025 figures, results relating to the Poland disposal have been annualized.
3.For periods less than one year, and if there are results outside the ordinary course of our business, the profit used to calculate RoA and RoRWA is the annualized underlying consolidated profit, to which said results are added without annualizing. However, in 2025 figures, results relating to the Poland disposal have been annualized.
4.2025 figures exclude balances related to the Poland disposal.
5.The risk-weighted assets included in the denominator of the RoRWA metric are calculated in line with the criteria laid out in the CRR (Capital Requirements Regulation).
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•Alternative performance measures
Ratio Formula Relevance of the metric
Global business and country underlying RoTE
Underlying profit attributable to the parent minus AT1 costs1 (annualized, excluding goodwill impairment)
This indicator is used to assess the profitability of the tangible equity of a company arising from underlying activities, i.e. excluding results from operations outside the ordinary course of business, deducting AT1 issuance costs from the numerator.
Average stockholders' equity (excl. minority interests) - intangible assets2
1.For both global businesses and countries, AT1 costs are allocated according to RWA consumption.
2.For global businesses, tangible equity is allocated according to RWA consumption.

Underlying RoTE (EUR million and %)
H1'26H1'25
%NumeratorDenominator%NumeratorDenominator
Retail & Commercial Banking17.1 7,947 46,537 16.3 7,003 42,903 
Openbank7.7 1,487 19,398 10.3 1,922 18,583 
Corporate & Investment Banking20.3 3,370 16,615 19.5 2,839 14,557 
Wealth Management & Insurance56.9 2,142 3,764 59.9 1,791 2,989 
Spain26.2 4,932 18,853 21.4 4,376 20,494 
UK10.7 1,384 12,962 8.9 1,060 11,947 
Portugal29.7 926 3,123 31.1 1,034 3,329 
Openbank Europe4.3 412 9,563 6.9 706 10,230 
US13.2 1,885 14,278 11.0 1,591 14,490 
Mexico20.7 1,758 8,484 21.0 1,558 7,423 
Brazil14.5 2,081 14,339 14.2 1,898 13,343 
Chile22.0 909 4,130 19.5 711 3,651 
Argentina13.9 372 2,673 21.8 510 2,337 
Numerator: underlying profit attributable to the parent minus AT1 costs (annualized, excluding goodwill impairment).
Denominator: average stockholders' equity (excluding minority interests) - tangible assets.
Payment Solutions' underlying RoTE is not provided as we do not consider it a relevant metric to measure performance in this type of business.



Efficiency ratio (EUR million and %)
H1'26H1'25
%NumeratorDenominator%NumeratorDenominator
Retail & Commercial Banking40.5 6,948 17,135 43.4 7,036 16,202 
Openbank41.6 2,718 6,535 44.5 2,860 6,425 
Corporate & Investment Banking40.8 1,948 4,779 44.7 1,840 4,119 
Wealth Management & Insurance35.0 733 2,093 36.3 701 1,930 
Payments85.3 657 771 93.6 600 641 
Spain33.6 2,142 6,380 36.0 2,202 6,118 
UK53.2 1,444 2,713 60.9 1,518 2,492 
Portugal28.3 266 937 27.0 267 989 
Openbank Europe45.8 1,370 2,989 52.0 1,471 2,827 
US45.8 1,833 4,004 50.1 1,968 3,927 
Mexico40.7 1,388 3,412 43.5 1,310 3,010 
Brazil40.5 2,669 6,595 39.1 2,468 6,309 
Chile29.7 457 1,538 34.7 489 1,410 
Argentina38.2 518 1,355 45.5 520 1,145 
Numerator: underlying total costs.
Denominator: underlying total income.


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•Alternative performance measures
Credit risk indicators
The credit risk indicators measure the quality of the credit portfolio and the percentage of non-performing loans covered by provisions. These metrics have been enhanced to include corporate exposures originated through private fixed income products. Additionally, they exclude the balances affected by the Poland disposal from all periods presented.
RatioFormulaRelevance of the metric
NPL ratio
(Non-performing loans ratio)
Credit impaired customer loans and advances, guarantees and undrawn balances and debt securities issued by non-financial institutionsThe NPL ratio is an important variable regarding financial institutions' activity since it gives an indication of the level of credit risk the entities are exposed to. It calculates risks that are, in accounting terms, declared to be credit impaired as a percentage of the total outstanding amount of customer credit and contingent liabilities and debt securities issued by non-financial institutions.
Total risk 1
NPL coverage ratioTotal allowances to cover impairment losses on customer loans and advances, guarantees and undrawn balances and debt securities issued by non-financial institutionsThe NPL coverage ratio is a fundamental metric in the financial sector. It reflects the level of provisions as a percentage of the credit impaired assets. Therefore, it is a good indicator of the entity's solvency against customer defaults both present and future.
Credit impaired customer loans and advances, guarantees and undrawn balances and debt securities issued by non-financial institutions
Cost of riskAllowances for loan-loss provisions over the last 12 monthsThis ratio quantifies loan-loss provisions arising from credit risk over a defined period of time for a given loan and debt securities issued by non-financial institutions portfolio. As such, it acts as an indicator of credit quality.
Average loans and advances to customers and debt securities issued by non-financial institutions over the last 12 months
1. Total risk = non-impaired and impaired customer loans and advances and guarantees + impaired undrawn customer balances + debt securities issued by non-financial institutions.




Credit risk (EUR million and %)
Jun-26Mar-26Jun-25
NPL ratio2.93%3.00%2.90%
Credit impaired balances37,56035,89332,636
Gross loans and advances to customers registered under the headings 'financial assets measured at amortized cost' and 'financial assets designated at fair value through other comprehensive income' classified in stage 3, excluding POCI (Purchased or Originated Credit Impaired)34,11833,40030,337
POCI exposure (Purchased or Originated Credit Impaired) that is additionally impaired or acquired in business combinations60312064
Customer guarantees and undrawn balances classified in stage 31,3141,2991,473
Doubtful exposure of portfolios at fair value through profit or loss302022
Gross debt securities issued by non-financial institutions registered under the headings 'financial assets measured at amortized cost' and 'financial assets designated at fair value through other comprehensive income' classified in stage 31,4951,054740
Total risk1,280,7551,197,2691,125,246
Impaired and non-impaired gross loans and advances to customers1,171,9651,093,0251,031,536
Impaired and non-impaired customer guarantees and impaired undrawn customer balances86,54582,34274,173
Impaired and non-impaired gross debt securities issued by non-financial institutions22,24521,90219,537
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•Alternative performance measures
Jun-26Mar-26Jun-25
NPL coverage ratio64%66%67%
Total allowances to cover impairment losses24,20723,57221,836
Total allowances to cover impairment losses on loans and advances to customers measured at amortized cost and designated at fair value through other comprehensive income22,80322,21620,810
Total allowances to cover impairment losses on customer guarantees and undrawn balances748764652
Total allowances to cover impairment losses on debt securities issued by non-financial institutions measured at amortized cost and designated at fair value through other comprehensive income656592374
Credit impaired balances37,56035,89332,636
Gross loans and advances to customers registered under the headings 'financial assets measured at amortized cost' and 'financial assets designated at fair value through other comprehensive income' classified in stage 3, excluding POCI (Purchased or Originated Credit Impaired)34,11833,40030,337
POCI exposure (Purchased or Originated Credit Impaired) that is additionally impaired or acquired in business combinations60312064
Customer guarantees and undrawn balances classified in stage 31,3141,2991,473
Doubtful exposure of portfolios at fair value through profit or loss302022
Gross debt securities issued by non-financial institutions registered under the headings 'financial assets measured at amortized cost' and 'financial assets designated at fair value through other comprehensive income' classified in stage 31,4951,054740
Cost of risk1.15%1.14%1.13%
Underlying allowances for loan-loss provisions over the last 12 months12,64212,27011,933
Allowances for loan-loss provisions over the last 12 months12,64312,73812,410
Adjustments to loan-loss provisions for items outside ordinary course of business(1)(468)(476)
Average loans and advances to customers and debt securities issued by non-financial institutions over the last 12 months1,099,1681,071,8331,060,614



NPL ratio (EUR million and %)
Jun-26Jun-25
%NumeratorDenominator%NumeratorDenominator
Retail & Commercial Banking3.05 21,507 705,862 3.11 19,703 634,287 
Openbank5.61 12,390 221,021 4.97 10,521 211,670 
Corporate & Investment Banking1.02 3,241 318,379 0.77 1,874 242,557 
Wealth Management & Insurance1.17 328 27,951 0.96 248 25,820 
Spain1.87 6,350 338,761 2.13 6,490 304,773 
UK0.97 2,812 288,908 1.25 3,028 241,761 
Portugal1.77 861 48,727 2.13 980 45,986 
Openbank Europe2.57 3,756 146,047 2.62 3,739 142,860 
US4.43 7,576 170,947 4.61 6,245 135,574 
Mexico2.97 1,704 57,397 2.93 1,418 48,408 
Brazil7.89 10,178 128,937 6.55 7,384 112,764 
Chile5.79 2,665 46,051 5.43 2,288 42,140 
Argentina9.93 1,037 10,438 3.76 349 9,272 
Numerator: credit impaired customer loans and advances, guarantees and undrawn balances + debt securities issued by non-financial institutions.
Denominator: total risk.
Payment Solutions' NPL ratio is not provided as we do not consider it a relevant metric for this type of business.

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•Alternative performance measures
NPL coverage ratio (EUR million and %)
Jun-26Jun-25
%NumeratorDenominator%NumeratorDenominator
Retail & Commercial Banking66 14,107 21,507 64 12,625 19,703 
Openbank70 8,650 12,390 76 8,041 10,521 
Corporate & Investment Banking37 1,211 3,241 44 818 1,874 
Wealth Management & Insurance50 163 328 70 175 248 
Spain53 3,389 6,350 53 3,454 6,490 
UK35 993 2,812 31 939 3,028 
Portugal82 704 861 81 796 980 
Openbank Europe88 3,300 3,756 82 3,078 3,739 
US53 4,044 7,576 63 3,942 6,245 
Mexico100 1,708 1,704 99 1,409 1,418 
Brazil72 7,321 10,178 82 6,044 7,384 
Chile47 1,262 2,665 50 1,140 2,288 
Argentina89 922 1,037 121 422 349 
Numerator: total allowances to cover impairment losses on customer loans and advances, guarantees and undrawn balances + debt securities issued by non-financial institutions.
Denominator: credit impaired customer loans and advances, guarantees and undrawn balances + debt securities issued by non-financial institutions.
Payment Solutions' coverage ratio is not provided as we do not consider it a relevant metric for this type of business.
Cost of risk (EUR million and %)
Jun-26Jun-25
%NumeratorDenominator%NumeratorDenominator
Retail & Commercial Banking1.19 7,496 631,744 1.13 7,096 627,236 
Openbank2.09 4,466 214,131 2.09 4,444 212,852 
Corporate & Investment Banking0.29 641 219,023 0.07 138 188,045 
Wealth Management & Insurance0.03 7 26,175 0.19 46 24,496 
Spain0.411,134 276,004 0.47 1,200 256,872 
UK0.10255 250,622 0.05 115 250,146 
Portugal0.0523 45,045 0.00 0 42,538 
Openbank Europe1.011,432 142,407 0.89 1,244 139,184 
US1.472,108 142,968 1.68 2,365 140,972 
Mexico2.741,357 49,457 2.53 1,163 45,876 
Brazil4.144,555 109,998 4.19 4,455 106,323 
Chile1.28521 40,826 1.31 539 41,171 
Argentina11.12957 8,607 5.09 428 8,405 
Numerator: underlying allowances for loan-loss provisions over the last 12 months.
Denominator: average loans and advances to customers + debt securities issued by non-financial institutions over the last 12 months.
Payment Solutions' cost of risk is not provided as we do not consider it a relevant metric for this type of business.


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•Alternative performance measures
Other indicators
The Group has a series of additional financial metrics which facilitate analysis of the underlying business trends and performance.
RatioFormulaRelevance of the metric
TNAV per share
 Tangible book value 1
This is a very commonly used ratio used to measure the company’s accounting value per share having deducted the intangible assets. It is useful in evaluating the amount each shareholder would receive if the company were to enter into liquidation and had to sell all the company’s tangible assets.
(Tangible net asset value per share)  Number of shares excluding treasury stock
Price / tangible book value per share (X) Share priceThis is one of the most commonly used ratios by market participants for the valuation of listed companies both in absolute terms and relative to other entities. This ratio measures the relationship between the price paid for a company and its accounting equity value.
TNAV per share
LTD ratioNet loans and advances to customersThis is an indicator of the bank's liquidity. It measures the
total loans and advances to customers net of loan-loss provisions as a percentage of customer deposits.
(Loan-to-deposit) Customer deposits
Loans and advances (excl. reverse repos)Gross loans and advances to customers excluding reverse reposIn order to aid analysis of the commercial banking activity, reverse repos are excluded as they are highly volatile treasury products.
Deposits (excl. repos)Customer deposits excluding reposIn order to aid analysis of the commercial banking activity, repos are excluded as they are highly volatile treasury products.
PAT + fees paid to SAN (in Wealth Management & Insurance) Net profit + fees ceded by Santander Insurance & Asset Management Solutions to the branch network, net of taxes, excluding Private Banking customersMetric to assess Wealth Management & Insurance’s total contribution to the Group’s profit.
Payments' EBITDA margin
EBITDA 2
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) is a financial metric whose purpose is to measure the operating performance of the business before interest, taxes and amortization, in relation to total revenue. It is used to assess the business’s operating profitability and its capacity to generate results from its core activities, isolating the impact of financial, tax and accounting factors.
Total income
1.Tangible book value = Stockholders' equity (excl. minority interests) - intangible assets.
2.EBITDA = net operating income - amortizations - impairment of other assets + net loan-loss provisions.



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•Alternative performance measures
Others (EUR million and %)
Jun-26Mar-26Jun-25
TNAV (tangible book value) per share6.326.135.50
Tangible book value90,57488,49881,878
Number of shares excl. treasury stock (million)14,32114,42614,884
Price / Tangible book value per share (X)1.911.551.28
Share price (euros)12.0849.4907.027
TNAV (tangible book value) per share6.326.135.50
Loan-to-deposit ratio101%101%100%
Net loans and advances to customers1,149,1621,070,8091,010,727
Customer deposits1,133,7621,059,2611,008,229
Q2'26Q1'26H1'26H1'25
PAT + fees (in Wealth) (constant EUR million)1,0219241,9451,707
Profit after tax6035071,110933
Net fee income net of tax418417835774
Payments' EBITDA margin31.733.432.628.8
EBITDA123128251185
Net operating income516311465
(-) Amortizations(75)(75)(150)(130)
(-) Impairment of other assets(3)(4)(7)—
Net loan-loss provisions(6)(14)(20)(11)
Total income387383771641
1.For TNAVs corresponding to periods in 2025, we have taken into account intangible assets related to the Poland disposal, even though they were recorded in ‘non-current assets held for sale’ from Q2 2025, in accordance with IFRS 5 requirements.
2.For 2026 data, the definition of EBITDA margin has been aligned with the new Group reporting, without changing prior periods. Therefore, the net operating income used for periods in 2025 does not include the ‘other operating costs’ line item.


Sustainability indicators
​
MetricDefinitionJun-26
Green finance raised and facilitated accumulated from 2019-2026 (EUR billion)Nominal amount of project finance, financial advisory, project bonds, green bonds (DCM), export finance (ECA), mergers and acquisitions (M&A), and equity capital markets (ECM) transactions ranked by the SCFS panel and reported in the League Tables of Dealogic, Inframation News, TXF and Mergermarket since 2019.188.0
Socially responsible investment assets under management (SRI AuMs) as a percentage of total assets under management in Wealth Management & InsuranceValue corresponding to total volume of assets under management registered as article 8 - promoting ESG characteristics - and 9 - with explicit sustainability objectives - of the Sustainable Finance Disclosure Regulation (SFDR, EU Reg. 2019/2088) except for illiquid investments in Private Banking which are reported in terms of committed capital. It includes: i) assets managed or advised by Santander Asset Management (SAM) and other Group asset managers in the EU and, using equivalent criteria, in countries where SFDR does not apply; and ii) third party funds and assets advised deemed sustainable investments according to SFDR (Article 2.17) or using internal criteria as per SFICS (Sustainable Finance & Investment Classification System) divided by total assets under management in Wealth Management & Insurance.24%
Note: targets were set before the publication of the European taxonomy in Q2 2023. Therefore, target definitions are not fully aligned with the taxonomy.

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•Alternative performance measures
Local currency measures
We make use of certain financial measures in local currency to help in the assessment of our ongoing operating performance. These non-IFRS financial measures include the results of operations of our subsidiary banks located outside the eurozone, excluding the impact of foreign exchange. Because changes in foreign currency exchange rates do not have an operating impact on the results, we believe that evaluating their performance on a local currency basis provides an additional and meaningful assessment of performance to both management and the company’s investors.
The Group presents, at both the Group level as well as the business unit level, the changes in the income statement as well as the changes excluding the exchange rate effect ('excluding FX' or 'constant euros'), as it considers the latter facilitates analysis, since it enables business movements to be identified without taking into account the impact of converting each local currency into euros.
Said variations, excluding the impact of exchange rate movements, are calculated by converting income statement lines for the different business units comprising the Group into our presentation currency, the euro, applying the average exchange rate for H1 2026 to all periods contemplated in the analysis. We use this method for all countries with the exception of Argentina, where we use the exchange rate on the last working day of each period presented, given it is a hyperinflationary economy, to mitigate the distortions caused by the hyperinflation.
We present, at both the Group level as well as the business unit level, the changes in euros as well as the changes excluding the exchange rate effect ('excluding FX' or 'constant euros') for loans and advances to customers excluding reverse repurchase agreements (repos) and customer funds (which comprise customer deposits and mutual funds) excluding repos. Additionally, we
present changes in the main balance sheet lines of the Group's countries both in euros as well as the changes excluding the exchange rate effect. As with the income statement, the reason is to facilitate analysis by isolating the changes in the balance sheet that are not caused by converting each local currency into euros.
These changes excluding the impact of exchange rate movements are calculated by converting the balances into our presentation currency, the euro, applying the closing exchange rate on the last working day of June 2026 to all periods contemplated in the analysis. We use this method to calculate the variations for all countries with the exception of Argentina, where we use the exchange rate on the last working day of each period presented, given it is a hyperinflationary economy, to mitigate the distortions caused by the hyperinflation.
In Q1 2025, due to the significant divergence between the official exchange rate and other macroeconomic magnitudes in Argentina, mainly inflation, we applied an alternative exchange rate for the Argentine peso taking the dollar contado con liquidación rate (CCL) as a reference, which is the exchange rate resulting from the sale of local bonds denominated in Argentine pesos in US dollars (dual denomination peso/dollar bonds).
From Q2 2025, we once again apply the official exchange rate given that the value of the dollar CCL exchange rate did not significantly differ from other market rates or the official exchange rate following the lifting of currency controls and the removal of restrictions on the purchase of foreign currency for individuals in Argentina.
The average and period-end exchange rates for the main currencies in which the Group operates are set out in the table below.
Exchange rates: 1 euro / currency parity
Average (income statement)Period-end (balance sheet)
H1'26H1'25Jun-26Mar-26Jun-25
US dollar1.166 1.092 1.143 1.153 1.175 
Pound sterling0.867 0.842 0.861 0.873 0.857 
Brazilian real6.006 6.286 5.915 6.011 6.405 
Mexican peso20.370 21.796 19.962 20.776 22.158 
Chilean peso1,041.468 1,042.620 1,053.147 1,073.161 1,095.928 
Argentine peso1
1,692.910 1,592.870 1,401.188 
1. Average exchange rates for the Argentine peso are not included since we use the exchange rate on the last working day of each period presented given it is a hyperinflationary economy. We apply the official ARS exchange rate except for Q1 2025 when we applied an alternative exchange rate for the Argentine peso that better reflected the evolution of inflation.
January - June 2026
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•Alternative performance measures
Impact of inflation rate on the variations of total costs
Santander presents, for both the Group and the business units included in the primary and secondary segments: i) the changes in total costs in euros; ii) the changes excluding the exchange rate effect with the exception of Argentina which is calculated as described above in 'Local currency measures'; and iii) the changes excluding the exchange rate effect and significant M&A impacts (i.e. in H1 2026, it excludes TSB) minus the effect of average inflation over the last twelve months (i.e. in 'real terms'), except for Argentina as Argentina's cost growth in euros should already largely reflect the effect of hyperinflation on exchange rates. The reason is that the two latter facilitate analysis for management purposes.
Inflation is calculated as the arithmetic average of the last 12 months for each country and, for the global businesses, as the weighted average the inflation rate of each country comprising the global business, weighted by each country's total costs. For the Group and the global businesses, to mitigate the impact from hyperinflation in the country, we exclude the impact of inflation in Argentina from the calculation as Argentina's cost growth in euros should already largely reflect the effect of hyperinflation on exchange rates.
The table below shows the average inflation rates calculated as indicated.
Average inflation
%Average inflation last 12 months
Retail & Commercial Banking3.5
Openbank2.7
Corporate & Investment Banking3.1
Wealth Management & Insurance3.0
Payment Solutions3.5
Spain2.9
UK3.3
Portugal2.6
Openbank Europe2.3
US3.1
Mexico3.8
Brazil4.6
Chile3.6
Total Group3.3
Note: the Total Group's and the global businesses' average inflations are calculated excluding the impact of inflation in Argentina.

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•Condensed consolidated financial statements
Interim condensed consolidated financial statements
Condensed consolidated balance sheet
Condensed consolidated income statement
NOTE:The following financial information for the first six months of 2026 and 2025 (attached herewith) corresponds to the condensed consolidated financial statements prepared in accordance with the International Financial Reporting Standards.
Interim condensed consolidated balance sheet
EUR million
ASSETSJun-26Dec-25Jun-25
Cash, cash balances at central banks and other deposits on demand138,008 152,281 175,555 
Financial assets held for trading286,941 252,318 234,834 
Non-trading financial assets mandatorily at fair value through profit or loss8,058 7,761 5,724 
Financial assets designated at fair value through profit or loss7,884 8,046 8,791 
Financial assets at fair value through other comprehensive income75,371 74,612 75,801 
Financial assets at amortised cost1,334,351 1,202,689 1,148,957 
Hedging derivatives5,006 3,931 4,628 
Changes in the fair value of hedged items in portfolio hedges of interest risk(500)50 53 
Investments7,722 7,052 7,191 
Joint ventures entities2,019 1,956 1,929 
Associated entities5,703 5,096 5,262 
Assets under reinsurance contracts230 223 228 
Tangible assets26,480 27,438 28,997 
Property, plant and equipment25,515 26,416 28,174 
For own-use11,993 11,663 11,967 
Leased out under an operating lease13,522 14,753 16,207 
Investment property965 1,022 823 
Of which : Leased out under an operating lease790 860 649 
Intangible assets18,772 17,308 17,249 
Goodwill13,143 11,958 11,960 
Other intangible assets5,629 5,350 5,289 
Tax assets31,478 30,076 28,003 
Current tax assets11,138 11,132 9,516 
Deferred tax assets20,340 18,944 18,487 
Other assets11,798 8,719 11,167 
Insurance contracts linked to pensions63 67 73 
Inventories6 7 6 
Other11,729 8,645 11,088 
Non-current assets held for sale2,866 75,011 68,710 
TOTAL ASSETS1,954,465 1,867,515 1,815,888 
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•Condensed consolidated financial statements
Interim condensed consolidated balance sheet
EUR million
LIABILITIESJun-26Dec-25Jun-25
Financial liabilities held for trading 193,417171,546155,682
Financial liabilities designated at fair value through profit or loss43,40742,14835,513
Financial liabilities at amortized cost1,543,7761,421,1841,400,632
Hedging derivatives4,4944,2484,431
Changes in the fair value of hedged items in portfolio hedges of interest rate risk (51)4970
Liabilities under insurance contracts19,34718,73718,343
Provisions9,2118,3558,098
Pensions and other post-retirement obligations1,6161,6561,652
Other long term employee benefits1,052993984
Taxes and other legal contingencies3,3032,9892,768
Contingent liabilities and commitments748713653
Other provisions2,4922,0042,041
Tax liabilities 9,7849,5688,911
Current tax liabilities3,8163,6643,099
Deferred tax liabilities5,9685,9045,812
Other liabilities 15,18215,93715,862
Liabilities associated with non-current assets held for sale—62,99559,361
TOTAL LIABILITIES1,838,5671,754,7671,706,903
EQUITY
Shareholders' equity143,259141,144138,066
Capital 7,3457,3457,443
Called up paid capital7,3457,3457,443
Unpaid capital which has been called up———
Share premium 36,79236,79238,492
Equity instruments issued other than capital———
Equity component of the compound financial instrument———
Other equity instruments issued———
Other equity355273271
Accumulated retained earnings102,45691,95991,954
Revaluation reserves———
Other reserves(8,847)(7,532)(6,922)
(-) Own shares(3,815)(96)(5)
Profit attributable to shareholders of the parent8,97314,1016,833
(-) Interim dividends—(1,698)—
Other comprehensive income (loss)(33,913)(37,974)(37,565)
Items not reclassified to profit or loss (3,160)(4,121)(4,060)
Items that may be reclassified to profit or loss(30,753)(33,853)(33,505)
Non-controlling interest6,5529,5788,484
Other comprehensive income(1,925)(1,947)(2,032)
Other items8,47711,52510,516
TOTAL EQUITY115,898112,748108,985
TOTAL LIABILITIES AND EQUITY1,954,4651,867,5151,815,888
MEMORANDUM ITEMS: OFF BALANCE SHEET AMOUNTS
Loan commitments granted325,379321,234302,446
Financial guarantees granted17,49817,44918,251
Other commitments granted151,556148,118143,921


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•Condensed consolidated financial statements
Interim condensed consolidated income statement
EUR millionH1'26H1'25
Interest income52,336 51,338 
   Financial assets at fair value through other comprehensive income3,374 2,736 
   Financial assets at amortized cost39,590 38,800 
   Other interest income9,372 9,802 
Interest expense(29,625)(30,127)
Interest income/ (charges)22,711 21,211 
Dividend income624 471 
Income from companies accounted for using the equity method476 332 
Commission income9,280 8,553 
Commission expense(2,429)(2,211)
Gain or losses on financial assets and liabilities not measured at fair value through profit or loss, net58 8 
   Financial assets at amortized cost(29)(14)
   Other financial assets and liabilities87 22 
Gain or losses on financial assets and liabilities held for trading, net571 701 
   Reclassification of financial assets at fair value through other comprehensive income— — 
   Reclassification of financial assets from amortized cost— — 
   Other gains (losses)571 701 
Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss180 523 
   Reclassification of financial assets at fair value through other comprehensive income— — 
   Reclassification of financial assets from amortized cost— — 
   Other gains (losses)180 523 
Gain or losses on financial assets and liabilities measured at fair value through profit or loss, net216 (301)
Gain or losses from hedge accounting, net(40)(13)
Exchange differences, net(253)114 
Other operating income (*)682 745 
Other operating expenses(1,305)(1,196)
Income from insurance and reinsurance contracts247 237 
Expenses from insurance and reinsurance contracts(196)(196)
Total income30,822 28,978 
Administrative expenses(10,868)(10,772)
   Staff costs(6,930)(6,736)
   Other general and administrative expenses(3,938)(4,036)
Depreciation and amortization(1,667)(1,626)
Provisions or reversal of provisions, net(1,750)(1,012)
Impairment or reversal of impairment of financial assets not measured at fair value
through profit or loss and net gains and losses from modifications		(6,571)(6,524)
   Financial assets at fair value through other comprehensive income(20)(55)
   Financial assets at amortized cost(6,551)(6,469)
Impairment of investments in subsidiaries, joint ventures and associates, net— — 
Impairment on non-financial assets, net(30)(147)
   Tangible assets(14)(114)
   Intangible assets(8)(28)
   Others(8)(5)
Gain or losses on non-financial assets and investments, net16 (32)
Negative goodwill recognized in results5 22 
Gains or losses on non-current assets held for sale not classified as discontinued operations4 217 
Operating profit/(loss) before tax9,961 9,104 
Tax expense or income from continuing operations(2,442)(2,367)
Profit/(loss) for the period from continuing operations7,519 6,737 
Profit/( loss) after tax from discontinued operations1,895 726 
Profit/(loss) for the period9,414 7,463 
Profit attributable to non-controlling interests441 630 
Profit/(loss) attributable to the parent8,973 6,833 
Earnings/(losses) per share
Basic 0.60 0.43 
Diluted0.60 0.43 
(*) Includes -EUR 364 million at 30 June 2026 (-EUR 299 million at 30 June 2025) derived from the net monetary loss generated in Argentina as a result of the application of IAS 29 Financial reporting in hyperinflationary economies.
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•Glossary
Glossary
•A2A: Account-to-account
•Active customer: Those customers who comply with the minimum balance, income and/or transactionality requirements as defined according to the business area
•ADR: American Depositary Receipt
•AI: Artificial intelligence
•APM: Alternative Performance Measures
•AuMs: Assets under management
•bn: Billion
•bps: basis points
•CDI: CREST Depository Interest
•CET1: Common Equity Tier 1
•CF: Corporate Finance
•CHF: Swiss francs
•CIB: Corporate & Investment Banking
•CNMV: Spanish National Securities Market Commission (Comisión Nacional del Mercado de Valores)
•CRR: Capital Requirements Regulation
•Digital customers: Every consumer of a commercial bank’s services who has logged on to their personal online banking and/or mobile banking in the last 30 days
•ECAs: Export credit agency, government-backed financial institutions that support domestic companies' international trade
•ECB: European Central Bank
•EPS: Earnings per share
•ESMA: European Securities and Markets Authority
•Financial inclusion: Number of people who are unbanked, underbanked, in financial difficulty, with difficulties in accessing credit who, through the Group's products and services, are able to access the financial system or receive tailored finance. Financially underserved groups are defined as people who do not have a current account, or who have an account but obtained alternative (non-bank) financial services in the last 12 months. Beneficiaries of various programmes are included in the quantification process only once in the entire period. Only new empowered people are counted, taking as a base year those existing since 2019. 
•Free float: total number of shares in circulation minus treasury shares as a % the total number of shares in circulation
•FX: Foreign Exchange
•GB: Global Banking
•GDP: Gross Domestic Product
•GM: Global Markets
•GTB: Global Transaction Banking
•ICO: Official Credit Institute in Spain (Instituto de Crédito Oficial)
•IDB: Inter-American Development Bank
•IFRS 5: International Financial Reporting Standard 5, regarding non-current Assets Held for Sale and Discontinued Operations
•IFRS 8: International Financial Reporting Standard 8, regarding operating segments
•IFRS 9: International Financial Reporting Standard 9, regarding financial instruments
•IPO: Initial Public Offering
•LCR: Liquidity Coverage Ratio
•LLPs: Loan-loss provisions
•MDA: Maximum Distributable Amount
•mn: Million
•MREL: Minimum Requirement for own funds and eligible liabilities
•M&A: Mergers and acquisitions
•NII: Net interest income
•NPS: Net promoter score
•OBE: Openbank Europe
•OB US: Openbank US
•ODS: Open Digital Services
•Payments: Payment Solutions (Getnet, Getnet Platforms and Ebury)
•PB: Private Banking
•PBT: Profit before tax
•pp: percentage points
•QoQ: quarter-on-quarter
•Retail: Retail & Commercial Banking
•Repos: Repurchase agreements
•RoA: Return on assets
•RoE: Return on equity
•RoRWA: Return on risk-weighted assets
•RoTE: Return on tangible equity excluding the cost of AT1issuances from the numerator
•RWAs: Risk-weighted assets
•Sales conversion: Indicator that measures the effectiveness of a commercial process in converting opportunities into actual sales
•SAM: Santander Asset Management
•SBNA: Santander Bank N.A.
•SEC: Securities and Exchanges Commission
•SMEs: Small and medium enterprises
•Time-to-market: The length of time it takes for a product or service to being available for purchase
•TLAC: The total loss-absorbing capacity requirement which is required to be met under the CRD V package
•TNAV: Tangible net asset value
•TPV: Total payments volume
•VaR: Value at Risk
•Wealth: Wealth Management & Insurance
•YoY: Year-on-year
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Important information
Non-IFRS and alternative performance measures
Banco Santander, S.A. (“Santander”) cautions that this report may contain financial information prepared according to International Financial Reporting Standards (IFRS) and taken from our consolidated financial statements, as well as alternative performance measures (APMs) as defined in the Guidelines on Alternative Performance Measures issued by the European Securities and Markets Authority (ESMA) on 5 October 2015, and other non-IFRS measures. The APMs and non-IFRS measures were calculated with information from Grupo Santander; however, they are neither defined or detailed in the applicable financial reporting framework nor audited or reviewed by our auditors. We use the APMs and non-IFRS measures when planning, monitoring and evaluating our performance. We consider them to be useful metrics for our management and investors to compare operating performance between accounting periods.
Nonetheless, the APMs and non-IFRS measures are supplemental information; their purpose is not to substitute the IFRS measures. Furthermore, other companies, including some in our industry, may calculate or use APMs and non-IFRS measures differently, thus making them less useful for comparison purposes. APMs using environmental, social and governance labels have not been calculated in accordance with the Taxonomy Regulation or with the indicators for principal adverse impact in SFDR.
For more details on APMs and non-IFRS measures, please see the 2025 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (the SEC) on 27 February 2026 (https://www.santander.com/content/dam/santander-com/es/documentos/informacion-sobre-resultados-semestrales-y-anuales-suministrada-a-la-sec/2026/sec-2025-annual-20-f-2025-disponible-solo-en-ingles-es.pdf), except with respect to the information and the audited financial statements included therein and superseded by the information and the audited financial statements included in our Report on Form 6-K furnished to the SEC on 1 April 2026 relating to certain recast financial information as a result of certain changes to the presentation of the Group’s financial information (https://www.santander.com/content/dam/santander-com/en/documentos/informacion-sobre-resultados-semestrales-y-anuales-suministrada-a-la-sec/2026/sec-recast-of-certain-financial-information-and-related-disclosure-for-the-three-years-ended-31-december-2025-en.pdf), as well as the section “Alternative performance measures” of this second quarter financial report, which was published on 22 July 2026 (https://www.santander.com/en/shareholders-and-investors/financial-and-economic-information#quarterly-results).
Sustainability information
This report may contain, in addition to financial information, sustainability-related information, including environmental, social and governance-related metrics, statements, goals, targets, commitments and opinions. Sustainability information is not audited nor reviewed by an external auditor. Sustainability information is prepared following various external and internal frameworks, reporting guidelines and measurement, collection and verification methods and practices, which may materially differ from those applicable to financial information and are in many cases emerging and evolving. Sustainability information is based on various materiality thresholds, estimates, assumptions, judgments and underlying data derived internally and from third parties. Sustainability information is thus subject to significant measurement uncertainties, may not be comparable to sustainability information of other companies or over time or across periods and its use is not meant to imply that the information is fit for any particular purpose or that it is material to us under mandatory reporting standards. The sustainability information is for informational purposes only, without any liability being accepted in connection with it except where such liability cannot be limited under overriding provisions of applicable law.
Forward-looking statements
Santander hereby warns that this report may contain 'forward-looking statements', as defined by the US Private Securities Litigation Reform Act of 1995. Such statements can be understood through words and expressions like 'expect', 'project', 'anticipate', 'should', 'intend', 'probability', 'risk', 'VaR', 'RoRAC', 'RoRWA', 'TNAV', 'target', 'goal', 'objective', 'estimate', 'future', 'ambition', 'aspiration', 'commitment', 'commit', 'focus', 'pledge' and similar expressions. They include (but are not limited to) statements on future business development, shareholder remuneration policy and non-financial information. However, risks, uncertainties and other important factors may lead to developments and results that differ materially from those anticipated, expected, projected or assumed in forward-looking statements. The important factors below (and others mentioned in this report, as well as other unknown or unpredictable factors, could affect our future development and results and could lead to outcomes materially different from what our forward-looking statements anticipate, expect, project or assume:
•general economic or industry conditions (e.g., an economic downturn; higher volatility in the capital markets; inflation; deflation; changes in demographics, consumer spending, investment or saving habits; and the effects of the armed conflicts in Ukraine and the Middle East, or the outbreak of public health emergencies in the global economy) in areas where we have significant operations or investments;
•exposure to operational risks, including cyberattacks, data breaches, data losses and other security incidents;
•exposure to market risks (e.g., risks from interest rates, foreign exchange rates, equity prices and new benchmark indices);
•potential losses from early loan repayment, collateral depreciation or counterparty risk;
•political instability in Spain, the UK, other European countries, Latin America and the US;
•changes in monetary, fiscal and immigration policies and trade tensions, including the imposition of tariffs and retaliatory responses;
•legislative, regulatory or tax changes (including regulatory capital and liquidity requirements) and greater regulation prompted by financial crises;
•acquisitions, integrations, divestitures and challenges arising from deviating management’s resources and attention from other strategic opportunities and operational matters;
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•reputational risk and potential adverse reactions of stakeholders, including adverse effects on the market price of our securities
•climate-related conditions, regulations, targets and weather events;
•uncertainty over the scope of actions that may be required by us, governments and other to achieve goals relating to climate, environmental and social matters, as well as the evolving nature of underlying science and potential conflicts and inconsistencies among governmental standards and regulations. Important factors affecting sustainability information may materially differ from those applicable to financial information. Sustainability information is based on various materiality thresholds, estimates, assumptions, judgments and underlying data derived internally and from third parties. Sustainability information is thus subject to significant measurement uncertainties, may not be comparable to sustainability information of other companies or over time or across periods and its inclusion is not meant to imply that the information is fit for any particular purpose or that it is material to us under mandatory reporting standards. The sustainability information is for informational purposes only, without any liability being accepted in connection with it except where such liability cannot be limited under overriding provisions of applicable law;
•our own decisions and actions, including those affecting or changing our practices, operations, priorities, strategies, policies or procedures; and
•changes affecting our access to liquidity and funding on acceptable terms, especially due to credit spread shifts or credit rating downgrade for the entire group or core subsidiaries.
Additionally, Webster Financial Corporation’s (“Webster”) and Santander’s actual results, financial condition and achievements may differ materially from those indicated in these forward-looking statements. Important factors that could cause Webster’s and Santander’s actual results, financial condition and achievements to differ materially from those indicated in such forward-looking statements include, in addition to those set forth in Webster’s and Santander’s filings with the SEC: (1) the risk that the cost savings, synergies and other benefits from the acquisition of Webster by Santander (the “Transaction”) may not be fully realized or may take longer than anticipated to be realized, including as a result of changes in, or problems arising from, general economic and market conditions, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Webster and Santander operate; (2) the failure of the closing conditions in the Transaction agreement by and among Webster, Santander and a wholly owned subsidiary of Webster providing for the Transaction to be satisfied, or any unexpected delay in closing the Transaction or the occurrence of any event, change or other circumstances that could delay the Transaction or could give rise to the termination of the Transaction agreement; (3) the outcome of any legal or regulatory proceedings or governmental inquiries or investigations that may be currently pending or later instituted against Webster, Santander or the combined company; (4) the possibility that the Transaction does not close when expected or at all because required regulatory or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed Transaction); (5) disruption to the parties’ businesses as a result of the announcement and pendency of the Transaction; (6) the costs associated with the anticipated length of time of the pendency of the Transaction, including the restrictions contained in the definitive Transaction agreement on the ability of Webster to operate its business outside the ordinary course during the pendency of the Transaction; (7) risks related to management and oversight of the expanded business and operations of the combined company following the closing of the proposed Transaction; (8) the risk that the integration of Webster’s operations with Santander’s will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate each party’s businesses into the other’s businesses; (9) the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (10) reputational risk and potential adverse reactions of Webster’s or Santander’s customers, employees, vendors, contractors or other business partners, including those resulting from the announcement or completion of the Transaction; (11) the dilution caused by Santander’s issuance of additional ordinary shares and corresponding American depositary shares, each representing the right to receive one of its ordinary shares (“ADSs”), in connection with the Transaction; (12) the possibility that any announcements relating to the Transaction could have adverse effects on the market price of Webster’s common stock and Santander’s ordinary shares and ADSs; (13) a material adverse change in the condition of Webster or Santander; (14) the extent to which Webster’s or Santander’s businesses perform consistent with management’s expectations; (15) Webster’s and Santander’s ability to take advantage of growth opportunities and implement targeted initiatives in the timeframe and on the terms currently expected; (16) the inability to sustain revenue and earnings growth; (17) the execution and efficacy of recent strategic investments; (18) the impact of macroeconomic factors, such as changes in general economic conditions and monetary and fiscal policy, particularly on interest rates; (19) changes in customer behavior; (20) unfavorable developments concerning credit quality; (21) declines in the businesses or industries of Webster’s or Santander’s customers; (22) the possibility that the combined company is subject to additional regulatory requirements as a result of the proposed Transaction or expansion of the combined company’s business operations following the proposed Transaction; (23) general competitive, political and market conditions and other factors that may affect future returns of Webster and Santander, including changes in asset quality and credit risk; (24) security risks, including cybersecurity and data privacy risks, and capital markets; (25) inflation; (26) the impact, extent and timing of technological changes; (27) capital management activities; (28) competitive product and pricing pressures; (29) the outcomes of legal and regulatory proceedings and related financial services industry matters; and (30) compliance with regulatory requirements. Any forward-looking statement made in this report is based solely on information currently available to us and speaks only as of the date on which it is made.
Forward looking statements are based on current expectations and future estimates about Santander’s and third-parties’ operations and businesses and address matters that are uncertain to varying degrees, including, but not limited to developing standards that may change in the future; plans, projections, expectations, targets, objectives, strategies and goals relating to environmental, social, safety and governance performance, including expectations regarding future execution of Santander’s and third parties’ energy and climate strategies, and the underlying assumptions and estimated impacts on Santander’s and third-parties’ businesses related thereto; Santander’s and third-parties’ approach, plans and expectations in relation to carbon use and targeted reductions of emissions; changes in operations or investments under existing or future environmental laws and regulations; and changes in government regulations and regulatory requirements, including those related to climate-related initiatives.
Forward-looking statements are aspirational, should be regarded as indicative, preliminary and for illustrative purposes only, speak only as of the date of this report and are informed by the knowledge, information and views available on such date and are subject to change without notice.
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Banco Santander is not required to update or revise any forward-looking statements, regardless of new information, future events or otherwise, except as required by applicable law.
No offer or solicitation
This report does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the “Securities Act”). No investment activity should be undertaken on the basis of the information contained in this report. By making this report available, no advice or recommendation is being given to buy, sell or otherwise deal in any securities or investments whatsoever.
Past performance does not indicate future outcomes
Statements about historical performance or growth rates must not be construed as suggesting that future performance, share price or earnings (including earnings per share) will necessarily be the same or higher than in previous periods. Nothing mentioned in this report should be taken as a profit and loss forecast.
Third Party Information
Regarding the data provided by third parties, neither Santander, nor any of its directors, managers or employees, either explicitly or implicitly, guarantees that these contents are exact, accurate, comprehensive or complete, nor are they obliged to keep them updated, nor to correct them in the case that any deficiency, error or omission were to be detected. Moreover, in reproducing these contents in by any means, Santander may introduce any changes it deems suitable, and may omit, partially or completely, any of the elements of this report, and in case of any deviation, Santander assumes no liability for any discrepancy.

This document is a translation of a document originally issued in Spanish. Should there be any discrepancies between the English and the Spanish versions, only the original Spanish version should be binding.

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Main risks and uncertainties
At the date of preparation of this management report, Grupo Santander considers that the important factors highlighted under ‘Forward-looking statements’ in the ‘Important Information’ section, as well as other unknown or unpredictable factors, could affect our future development and results and could lead to outcomes materially different from what our forward-looking statements anticipate, expect, project or assume.
These are not the only risks that the bank may face. Other unknown risks or those not considered relevant at this time, may materialize in the future.
Our geographic and business diversification protects us, to some extent, from adverse circumstances and enables us to respond to them with resilience. Although it is difficult to make estimations in the current environment, our strategy and business model are a clear competitive advantage.
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Other disclosures required by the Bank of Spain

Disclosures required under Bank of Spain Circular 6/2012 on sector and geographic concentration of risk
Concentration of risk
The breakdown at 30 June 2026 of the concentration of the Group's risk, by activity and geographic location of counterparties, is as follows:
Million euros
30/06/2026
Total
Spain
Rest of the European Union
America
Rest of the world
Central banks and Credit institutions329,09142,24466,743133,51086,594
Public sector305,86393,29575,287119,50517,776
Of which:
Central government259,47773,86269,42098,84717,348
Other central government46,38619,4335,86720,658428
Other financial institutions (financial business activity)252,91417,47655,103130,37449,961
Non-financial companies and individual entrepreneurs (non-financial business activity) (broken down by purpose)456,487103,61990,334198,14464,390
Of which:
Construction and property development18,5384,0841,3338,2714,850
Civil engineering construction4,9252,1021,2861,45186
Large companies298,26253,33460,650134,80149,477
SMEs and individual entrepreneurs134,76244,09927,06553,6219,977
Households – other (broken down by purpose)607,15292,727101,315151,217261,893
Of which:
Residential382,67663,27327,72548,745242,933
Consumer loans203,39420,57971,94392,57618,296
Other purposes21,0828,8751,6479,896664
Total (*)
1,951,507 349,361 388,782 732,750 480,614 
(*)  For the purpose of this table, the definition of risk includes the following public balance sheet items: loans and advances to credit institutions, deposits at central banks, loans and advances to customers, debt securities, capital instruments, trading derivatives, hedging derivatives, equity investments and guarantees extended.
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Million euros (*)
Secured loans
Net exposureLoan-to-value (**)
Total
Unsecured loans
Of which: Mortgage collateral
Of which: Other collateralLess than or equal to 40%
Greater than 40% and less than or equal to 60%
Greater than 60% and less than or equal to 80%Greater than 80% and less than or equal to 100%Greater than 100%
Public sector32,90431,4151561,333200222301442324
Other financial institutions (financial business activity)155,83246,8322,047106,9532,2061,322412104,473587
Non-financial corporations and individual entrepreneurs (non-financial business activity) (broken down by purpose)329,246186,61663,59579,03522,88627,28619,93046,70725,821
Of which:
Construction and property development16,37176615,4421634,2107,5122,1941,125564
Civil engineering construction2,3721,581177741188521456111
Large companies190,634135,33518,28437,0156,9486,3356,25327,1558,608
SMEs and individual entrepreneurs119,86948,93429,85241,08311,61013,35411,46217,97116,538
Households – other (broken down by purpose) 601,220111,559388,302101,359109,820140,893128,74367,02343,182
Of which:
Residential381,3111,157380,02013499,157129,905114,41535,2571,420
Consumer loans203,225108,9741,90592,3465,7327,67312,11527,40941,322
Other purposes16,6841,4286,3778,8794,9313,3152,2134,357440
Total1,119,202 376,422 454,100 288,680 135,112 169,723 149,386 218,645 69,914 
Memorandum item
Refinanced and restructured transactions19,7146,3517,0866,2772,1252,5552,2302,4054,048
(*)  In addition, the Group has granted advances to customers amounting to EUR 29,960 million; therefore, the total amount of loans and advances to customers amounts to EUR 1,149,162 million.
(**) Includes balances net of impairment or accumulated losses in fair value due to credit risk.
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Interim condensed consolidated financial statements
Condensed consolidated balance sheets
Condensed consolidated income statements
Condensed consolidated statements of recognised income and expense
Condensed consolidated statements of changes in total equity
Condensed consolidated statements of cash flows
Explanatory notes to the interim condensed consolidated financial statements
Note 1: Introduction, basis of presentation of the interim condensed consolidated financial statements and other information
Note 2: Grupo Santander
Note 3: Shareholder remuneration system and earnings per share
Note 4: Remuneration and other benefits paid to Banco Santander's directors and senior managers
Note 5: Financial assets
Note 6: Non-current assets held for sale and liabilities associated with non-current assets held for sale
Note 7: Tangible assets
Note 8: Intangible assets
Note 9: Financial liabilities
Note 10: Provisions
Note 11: Equity
Note 12: Segment information (primary segment)
Note 13: Related parties
Note 14: Off-balance-sheet exposures
Note 15: Average headcount and number of branches
Note 16: Other disclosures
Note 17: Explanation added for translation to English





Translation of interim condensed consolidated financial statements originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to the Group in Spain (see Notes 1 and 17). In the event of a discrepancy, the Spanish-language version prevails.

GRUPO SANTANDER
CONDENSED CONSOLIDATED BALANCE SHEETS AS AT 30 JUNE 2026 AND 31 DECEMBER 2025
(EUR million)
ASSETS
Note
30-06-2026
31-12-2025 (*)
CASH, CASH BALANCES AT CENTRAL BANKS AND OTHER DEPOSITS ON DEMAND138,008152,281
FINANCIAL ASSETS HELD FOR TRADING5286,941252,318
NON-TRADING FINANCIAL ASSETS MANDATORILY AT FAIR VALUE THROUGH PROFIT OR LOSS58,0587,761
FINANCIAL ASSETS DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS57,8848,046
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME575,37174,612
FINANCIAL ASSETS AT AMORTISED COST51,334,3511,202,689
HEDGING DERIVATIVES5,0063,931
CHANGES IN THE FAIR VALUE OF HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RISK(500)50
INVESTMENTS7,7227,052
Joint venture entities2,019 1,956 
Associated entities5,703 5,096 
ASSETS UNDER REINSURANCE CONTRACTS230223
TANGIBLE ASSETS726,48027,438
Property, plant and equipment25,515 26,416 
For own-use11,993 11,663 
Leased out under an operating lease13,522 14,753 
Investment properties965 1,022 
Of which : Leased out under an operating lease790 860 
INTANGIBLE ASSETS818,77217,308
Goodwill13,143 11,958 
Other intangible assets5,629 5,350 
TAX ASSETS31,47830,076
Current tax assets11,138 11,132 
Deferred tax assets20,340 18,944 
OTHER ASSETS11,7988,719
Insurance contracts linked to pensions63 67 
Inventories6 7 
Other11,729 8,645 
NON-CURRENT ASSETS HELD FOR SALE62,86675,011
TOTAL ASSETS1,954,465 1,867,515 
(*) Presented for comparison purposes only (see Note 1.e).
The accompanying explanatory Notes 1 to 17 are an integral part of the condensed consolidated balance sheet as at 30 June 2026.
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Translation of interim condensed consolidated financial statements originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to the Group in Spain (see Notes 1 and 17). In the event of a discrepancy, the Spanish-language version prevails.


GRUPO SANTANDER
CONDENSED CONSOLIDATED BALANCE SHEETS AS AT 30 JUNE 2026 AND 31 DECEMBER 2025
(EUR million)
LIABILITIES
Note
30-06-2026
31-12-2025 (*)
FINANCIAL LIABILITIES HELD FOR TRADING9193,417171,546
FINANCIAL LIABILITIES DESIGNATED AT FAIR VALUE THROUGH PROFIT OR LOSS943,40742,148
FINANCIAL LIABILITIES AT AMORTISED COST 91,543,7761,421,184
HEDGING DERIVATIVES4,4944,248
CHANGES IN THE FAIR VALUE OF HEDGED ITEMS IN PORTFOLIO HEDGES OF INTEREST RATE RISK(51)49
LIABILITIES UNDER INSURANCE CONTRACTS19,34718,737
PROVISIONS9,2118,355
Pension and other post-retirement obligations101,616 1,656 
Other long term employee benefits101,052 993 
Taxes and other legal contingencies103,303 2,989 
Contingent liabilities and commitments14748 713 
Other provisions102,492 2,004 
TAX LIABILITIES9,7849,568
Current tax liabilities3,816 3,664 
Deferred tax liabilities5,968 5,904 
OTHER LIABILITIES15,18215,937
LIABILITIES ASSOCIATED WITH NON-CURRENT ASSETS HELD FOR SALE6— 62,995 
TOTAL LIABILITIES1,838,567 1,754,767 
SHAREHOLDERS´ EQUITY143,259141,144
CAPITAL117,3457,345
Called up paid capital7,345 7,345 
Unpaid capital which has been called up— — 
SHARE PREMIUM36,79236,792
EQUITY INSTRUMENTS ISSUED OTHER THAN CAPITAL——
Equity component of the compound financial instrument— — 
Other equity instruments issued— — 
OTHER EQUITY355273
ACCUMULATED RETAINED EARNINGS102,45691,959
REVALUATION RESERVES——
OTHER RESERVES(8,847)(7,532)
(-) OWN SHARES(3,815)(96)
PROFIT ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT38,97314,101
(-) INTERIM DIVIDENDS—(1,698)
OTHER COMPREHENSIVE INCOME (LOSS)11(33,913)(37,974)
Items not reclassified to profit or loss(3,160)(4,121)
Items that may be reclassified to profit or loss(30,753)(33,853)
NON-CONTROLLING INTEREST66,5529,578
Other comprehensive income(1,925)(1,947)
Other items8,477 11,525 
TOTAL EQUITY115,898 112,748 
TOTAL LIABILITIES AND EQUITY1,954,465 1,867,515 
MEMORANDUM ITEMS: OFF BALANCE SHEET AMOUNTS14
Loan commitments granted325,379 321,234 
Financial guarantees granted17,498 17,449 
Other commitments granted151,556 148,118 
(*) Presented for comparison purposes only (see Note 1.e).
The accompanying explanatory Notes 1 to 17 are an integral part of the condensed consolidated balance sheet as at 30 June 2026.
96
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January - June 2026

Translation of interim condensed consolidated financial statements originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to the Group in Spain (see Notes 1 and 17). In the event of a discrepancy, the Spanish-language version prevails.
GRUPO SANTANDER
CONDENSED CONSOLIDATED INCOME STATEMENTS
FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2026 AND 2025
                                                                                                                                           (EUR million)
(Debit) / Credit
Note
01-01-2026 to 30-06-2026
01-01-2025 to 30-06-2025 (*)
Interest income52,336 51,338 
   Financial assets at fair value through other comprehensive income3,374 2,736 
   Financial assets at amortised cost39,590 38,800 
   Other interest income9,372 9,802 
Interest expense(29,625)(30,127)
Interest income/ (charges)22,71121,211
Dividend income624 471 
Income from companies accounted for using the equity method476 332 
Commission income9,280 8,553 
Commission expense(2,429)(2,211)
Gain or losses on financial assets and liabilities not measured at fair value through profit or loss, net58 8 
   Financial assets at amortised cost(29)(14)
   Other financial assets and liabilities87 22 
Gain or losses on financial assets and liabilities held for trading, net571 701 
   Reclassification of financial assets at fair value through other comprehensive income— — 
   Reclassification of financial assets at amortised cost— — 
   Other gains (losses)571 701 
Gains or losses on non-trading financial assets and liabilities mandatorily at fair value through profit or loss180 523 
   Reclassification of financial assets at fair value through other comprehensive income— — 
   Reclassification of financial assets at amortised cost— — 
   Other gains (losses)180 523 
Gain or losses on financial assets and liabilities measured at fair value through profit or loss, net216 (301)
Gain or losses from hedge accounting, net(40)(13)
Exchange differences, net(253)114 
Other operating income (**)682 745 
Other operating expenses(1,305)(1,196)
Income from insurance and reinsurance contracts247 237 
Expenses from insurance and reinsurance contracts(196)(196)
Total income30,82228,978
Administrative expenses(10,868)(10,772)
   Staff costs(6,930)(6,736)
   Other general and administrative expenses(3,938)(4,036)
Depreciation and amortisation cost(1,667)(1,626)
Provisions or reversal of provisions, net(1,750)(1,012)
Impairment or reversal of impairment of financial assets not measured at fair value
through profit or loss and net gains and losses from modifications		(6,571)(6,524)
   Financial assets at fair value through other comprehensive income(20)(55)
   Financial assets at amortised cost5(6,551)(6,469)
Impairment of investments in subsidiaries, joint ventures and associates, net— — 
Impairment on non-financial assets, net(30)(147)
   Tangible assets(14)(114)
   Intangible assets(8)(28)
   Others(8)(5)
Gain or losses on non financial assets and investments, net16 (32)
Negative goodwill recognised in results5 22 
Gains or losses on non-current assets held for sale not classified as discontinued operations64 217 
Operating profit/(loss) before tax9,9619,104
Tax expense or income from continuing operations(2,442)(2,367)
Profit/(loss) for the period from continuing operations7,5196,737
Profit/( loss) after tax from discontinued operations1,895 726 
Profit/(loss) for the period9,4147,463
Profit attributable to non-controlling interests441 630 
Profit/(loss) attributable to the parent8,973 6,833 
Earnings/(losses) per share3
Basic 0.60 0.43 
Diluted0.60 0.43 
(*) Presented for comparison purposes only (see Note 1.e).
(**) Includes -EUR 364 million at 30 June 2026 (-EUR 299 million at 30 June 2025) derived from the net monetary loss generated in Argentina as a result of the application of IAS 29 Financial reporting in hyperinflationary economies.
The accompanying explanatory Notes 1 to 17 are an integral part of the condensed consolidated income statement
for the six-month period ended 30 June 2026.
January - June 2026
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97

Translation of interim condensed consolidated financial statements originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to the Group in Spain (see Notes 1 and 17). In the event of a discrepancy, the Spanish-language version prevails.

GRUPO SANTANDER
CONDENSED CONSOLIDATED STATEMENTS OF RECOGNISED INCOME AND EXPENSE
FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2026 AND 2025
(EUR million)
(Debit) / Credit
Note
01-01-2026 to 30-06-2026
01-01-2025 to 30-06-2025 (*)
CONSOLIDATED PROFIT/(LOSS) FOR THE PERIOD9,4147,463
OTHER RECOGNISED INCOME AND EXPENSE 3,111(1,374)
Items that will not be reclassified to profit or loss11(111)316
Actuarial gains and losses on defined benefit pension plans(159)21
Non-current assets held for sale—(11)
Other recognised income and expense of investments in subsidiaries, joint ventures and associates51
Changes in the fair value of equity instruments measured at fair value through other comprehensive income(20)263
Gains or losses resulting from the accounting for hedges of equity instruments measured at fair value through other comprehensive income, net——
Changes in the fair value of equity instruments measured at fair value through other comprehensive income (hedged item)44(95)
Changes in the fair value of equity instruments measured at fair value through other comprehensive income (hedging instrument)(44)95
Changes in the fair value of financial liabilities at fair value through profit or loss attributable to changes in credit risk2460
Income tax relating to items that will not be reclassified39(18)
Items that may be reclassified to profit or loss113,222(1,690)
Hedges of net investments in foreign operations (effective portion)11(838)756
Revaluation gains (losses)(838)756
Amounts transferred to income statement——
Other reclassifications——
Exchange differences113,737(3,540)
Revaluation gains (losses)3,737(3,540)
Amounts transferred to income statement——
Other reclassifications——
Cash flow hedges (effective portion)(283)692
Revaluation gains (losses)(650)(266)
Amounts transferred to income statement367958
Transferred to initial carrying amount of hedged items——
Other reclassifications——
Hedging instruments (items not designated)34—
Revaluation gains (losses)32—
Amounts transferred to income statement2—
Other reclassifications——
Debt instruments at fair value with changes in other comprehensive income(331)704
Revaluation gains (losses)(273)666
Amounts transferred to income statement(58)38
Other reclassifications——
Non-current assets held for sale558178
Revaluation gains (losses)
—178
Amounts transferred to income statement558—
Other reclassifications——
Share of other recognised income and expense of investments88(28)
Income tax relating to items that may be reclassified to profit or loss257(452)
Total recognised income and expenses for the year12,5256,089
Attributable to non-controlling interests
557598
Attributable to the parent11,9685,491
(*) Presented for comparison purposes only (see Note 1.e).
The accompanying explanatory Notes 1 to 17 are an integral part of the condensed consolidated statement of recognised income and expense for the six-month period ended 30 June 2026.
98
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January - June 2026

Translation of interim condensed consolidated financial statements originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to the Group in Spain (see Notes 1 and 17). In the event of a discrepancy, the Spanish-language version prevails.

GRUPO SANTANDER
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL EQUITY
FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2026 AND 2025
(EUR million)
Capital
Share premium
Equity instruments issued (not capital)
Other equity instruments
Accumulated retained earnings
Revaluation reserves
Other reserves
(-)
 Own shares
Profit Attributable to shareholders of the parent
(-)
 Interim dividends
Other comprehensive income
Non-Controlling interest
Total
Other comprehensive income
Other items
Balance as at 31-12-2025 (*)
7,345 36,792 — 273 91,959 — (7,532)(96)14,101 (1,698)(37,974)(1,947)11,525 112,748 
Adjustments due to errors— — — — — — — — — — — — — — 
Adjustments due to changes in accounting policies— — — — — — — — — — — — — — 
Opening balance as at 01-01-2026 (*)
7,345 36,792 — 273 91,959 — (7,532)(96)14,101 (1,698)(37,974)(1,947)11,525 112,748 
Total recognised income and expense— — — — — — — — 8,973 — 2,995 116 441 12,525 
Other changes in equity— — — 82 10,497 — (1,315)(3,719)(14,101)1,698 1,066 (94)(3,489)(9,375)
Issuance of ordinary shares— — — — — — — — — — — — — — 
Issuance of preferred shares— — — — — — — — — — — — — — 
Issuance of other financial instruments— — — — — — — — — — — — — — 
Maturity of other financial instruments— — — — — — — — — — — — — — 
Conversion of financial liabilities into equity— — — — — — — — — — — — — — 
Capital reduction— — — — — — — — — — — — — — 
Dividends— — — — (1,800)— — — — — — — (413)(2,213)
Purchase of equity instruments— — — — — — — (4,640)— — — — — (4,640)
Disposal of equity instruments— — — — — — 16 921 — — — — — 937 
Transfer from equity to liabilities— — — — — — — — — — — — — — 
Transfer from liabilities to equity— — — — — — — — — — — — — — 
Transfers between equity items— — — — 12,297 — (960)— (14,101)1,698 1,066 (94)94 — 
Increases (decreases) due to business combinations— — — — — — — — — — — — (3,274)(3,274)
Share-based payment— — — (86)— — — — — — — — — (86)
Others increases or (-) decreases of the equity— — — 168 — — (371)— — — — — 104 (99)
Balance as at 30-06-2026
7,345 36,792 — 355 102,456 — (8,847)(3,815)8,973 — (33,913)(1,925)8,477 115,898 
(*) Presented for comparison purposes only (see Note 1.e).
The accompanying explanatory Notes 1 to 17 are an integral part of the condensed consolidated statement of changes in total equity
for the six-month period ended 30 June 2026.

January - June 2026
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99

Translation of interim condensed consolidated financial statements originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to the Group in Spain (see Notes 1 and 17). In the event of a discrepancy, the Spanish-language version prevails.

GRUPO SANTANDER

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN TOTAL EQUITY
FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2026 AND 2025
(EUR million)
Capital
Share premium
Equity instruments issued (not capital)
Other equity instruments
Accumulated retained earnings
Revaluation reserves
Other reserves
(-)
 Own shares
Profit Attributable to shareholders of the parent
(-)
 Interim dividends
Other comprehensive income
Non-Controlling interest
Total
Other comprehensive income
Other items
Balance as at 31-12-2024 (*)
7,576 40,079 — 217 82,326 — (5,976)(68)12,574 (1,532)(36,595)(2,020)10,746 107,327 
Adjustments due to errors— — — — — — — — — — — — — — 
Adjustments due to changes in accounting policies— — — — — — — — — — — — — — 
Opening balance as at 01-01-2025 (*)
7,576 40,079 — 217 82,326 — (5,976)(68)12,574 (1,532)(36,595)(2,020)10,746 107,327 
Total recognised income and expense— — — — — — — — 6,833 — (1,342)(32)630 6,089 
Other changes in equity(133)(1,587)— 54 9,628 — (946)63 (12,574)1,532 372 20 (860)(4,431)
Issuance of ordinary shares— — — — — — — — — — — — — — 
Issuance of preferred shares— — — — — — — — — — — — — — 
Issuance of other financial instruments— — — — — — — — — — — — — — 
Maturity of other financial instruments— — — — — — — — — — — — — — 
Conversion of financial liabilities into equity— — — — — — — — — — — — — — 
Capital reduction(133)(1,587)— — — — 133 1,587 — — — — — — 
Dividends— — — — (1,643)— — — — — — — (819)(2,462)
Purchase of equity instruments— — — — — — — (2,021)— — — — — (2,021)
Disposal of equity instruments— — — — — — 32 497 — — — — — 529 
Transfer from equity to liabilities— — — — — — — — — — — — — — 
Transfer from liabilities to equity— — — — — — — — — — — — — — 
Transfers between equity items— — — — 11,271 — (601)— (12,574)1,532 372 20 (20)— 
Increases (decreases) due to business combinations— — — — — — — — — — — — (5)(5)
Share-based payment— — — (66)— — — — — — — — — (66)
Others increases or (-) decreases of the equity— — — 120 — — (510)— — — — — (16)(406)
Balance as at 30-06-2025 (*)
7,443 38,492 — 271 91,954 — (6,922)(5)6,833 — (37,565)(2,032)10,516 108,985 
(*) Presented for comparison purposes only (see Note 1.e).
The accompanying explanatory Notes 1 to 17 are an integral part of the condensed consolidated statement of changes in total equity
for the six-month period ended 30 June 2026.

100
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January - June 2026

Translation of interim condensed consolidated financial statements originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to the Group in Spain (see Notes 1 and 17). In the event of a discrepancy, the Spanish-language version prevails.
GRUPO SANTANDER
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX-MONTH PERIODS ENDED 30 JUNE 2026 AND 2025
(EUR million)
Note
30-06-2026
30-06-2025 (*)
A. CASH FLOWS FROM OPERATING ACTIVITIES(19,259)2,604 
Profit/(loss) for the period9,4147,463
Adjustments made to obtain the cash flows from operating activities12,66817,400
Depreciation and amortisation cost1,667 1,626 
Other adjustments11,001 15,774 
Net increase/(decrease) in operating assets101,71433,806
Financial assets held-for-trading29,050 9,104 
Non-trading financial assets mandatorily at fair value through profit or loss87 (398)
Financial assets at fair value through profit or loss(178)882 
Financial assets at fair value through other comprehensive income(2,416)(6,706)
Financial assets at amortised cost72,690 29,804 
Other operating assets2,481 1,120 
Net increase/(decrease) in operating liabilities62,77312,664
Financial liabilities held-for-trading18,718 5,777 
Financial liabilities designated at fair value through profit or loss 1,029 (817)
Financial liabilities at amortised cost45,633 7,039 
Other operating liabilities (2,607)665 
Income tax recovered/(paid)(2,400)(1,117)
B. CASH FLOWS FROM INVESTING ACTIVITIES6,273 (563)
Payments9,6214,247
Tangible assets72,844 3,202 
Intangible assets684 812 
Investments260 46 
Subsidiaries and other business units23,318 187 
Non-current assets held for sale and associated liabilities62,515 — 
Other payments related to investing activities— — 
Proceeds15,8943,684
Tangible assets72,935 2,927 
Intangible assets— — 
Investments175 275 
Subsidiaries and other business units5,270 53 
Non-current assets held for sale and associated liabilities67,514 429 
Other proceeds related to investing activities— — 
C. CASH FLOW FROM FINANCING ACTIVITIES(5,757)(8,058)
Payments9,5008,936
Dividends31,800 1,643 
Subordinated liabilities2,345 4,084 
Redemption of own equity instruments— — 
Acquisition of own equity instruments4,640 2,021 
Other payments related to financing activities715 1,188 
Proceeds3,743878
Subordinated liabilities2,682 306 
Issuance of own equity instruments11— — 
Disposal of own equity instruments944 542 
Other proceeds related to financing activities117 30 
D. EFFECT OF FOREIGN EXCHANGE RATE DIFFERENCES1,955 (8,185)
E. NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS(16,788)(14,202)
F. CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD154,796 192,208 
G. CASH AND CASH EQUIVALENTS AT END OF PERIOD138,008 178,006 
COMPONENTS OF CASH AND CASH EQUIVALENTS AT END OF PERIOD
Cash6,579 6,807 
Cash equivalents at central banks119,102 158,978 
Other financial assets12,327 9,770 
Less: Bank overdrafts refundable on demand— — 
TOTAL CASH AND CASH EQUIVALENTS AT END OF PERIOD138,008 175,555 
In which: restricted cash— — 
TOTAL CASH AND CASH EQUIVALENTS AT END OF PERIOD ASSOCIATED WITH NON-CURRENT ASSETS HELD FOR SALE6— 2,451 
(*) Presented for comparison purposes only (see Note 1.e).
The accompanying explanatory Notes 1 to 17 are an integral part of the condensed consolidated statement of cash flow for the six-month period ended 30 June 2026.
January - June 2026
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101

Banco Santander, S.A. and Companies composing Grupo Santander

Explanatory notes to the interim condensed consolidated financial statements for the six-month period ended 30 June 2026.
1.    Introduction, basis of presentation of the interim condensed consolidated financial statements and other information
a)    Introduction
Banco Santander, S.A. ('the parent' or 'Banco Santander') is a private-law entity subject to the rules and regulations applicable to banks operating in Spain. The Bylaws and other public information of the Bank can be consulted at its registered office at Paseo de Pereda 9 -12, Santander.
In addition to the operations carried on directly by it, Banco Santander is the head of a group of subsidiaries that engage in various business activities and which compose, together with it, Grupo Santander ('Santander' or 'The Group').
Grupo Santander's interim condensed consolidated financial statements ('interim financial statements') for the six-month period ended 30 June 2026 were authorised and approved by Grupo Santander's directors at the board of directors meeting held on 21 July 2026. Grupo Santander's consolidated annual accounts for year 2025 were approved by shareholders at Banco Santander annual general meeting on 27 March 2026.
b)    Basis of presentation of the interim financial statements
Under Regulation (EC) n.º 1606/2002 of the European Parliament and of the Council of 19 July 2002 all companies governed by the law of an EU Member State and whose securities are admitted to trading on a regulated market of any Member State must prepare their consolidated financial statements for the years beginning on or after 1 January, 2005 in conformity with the International Financial Reporting Standards ('IFRS') previously adopted by the European Union ('EU-IFRS'). In order to adapt the accounting system of Spanish credit institutions with the principles and criteria established by the IFRS adopted by the European Union ('EU-IFRS'), the Bank of Spain published circular 4/2017, dated 27 November 2017, and subsequent changes, on Public and Confidential Financial Reporting Standards and Financial Statement Formats.
The consolidated annual accounts for 2025 were authorised at the board of directors meeting on 24 February 2026 in compliance with International Financial Reporting Standards as adopted by the European Union, taking into account Bank of Spain Circular 4/2017, and subsequent modifications, using the basis of consolidation, accounting policies and measurement bases described in Note 2 to the aforementioned consolidated annual accounts and, accordingly, they presented fairly Grupo Santander’s consolidated equity and consolidated financial position at 31 December 2025 and the consolidated results of its operations, and the consolidated cash flows in 2025. The aforementioned consolidated annual accounts, which were updated taking into account the changes described later in this section and in Note 12, are included in Grupo Santander’s Form 6-K filed with the U.S. Securities and Exchange Commission on 1 April 2026, and these interim financial statements are also in compliance with International Financial Reporting Standards as issued by the International Accounting Standards Board ('IFRS-IASB', and together with EU-IFRS, 'IFRS').
These interim financial statements were prepared and are presented in accordance with International Accounting Standard (IAS 34), Interim Financial Reporting, for the preparation of interim financial statements in accordance with the provisions of article 12 of Royal Decree 1362/2007 taking into account the requirements of Circular 3/2018, of June 28, of the Securities and Exchange Commission (CNMV). These interim financial statements will be included in the Half-Yearly Financial Information corresponding to the first half of 2026 that the Group presents in accordance with the aforementioned Circular 3/2018.
In accordance with IAS 34, the interim financial statements are intended only to provide an update on the content of the latest consolidated annual accounts authorised for issue, focusing on new activities, events and circumstances occurring during the first six months, and does not duplicate information previously reported in the latest consolidated annual accounts. Consequently, these interim financial statements do not include all the information that would be required for a complete set of consolidated annual accounts prepared in accordance with IFRS and, accordingly, for a proper comprehension of the information included in these interim financial statements, they should be read together with Grupo Santander’s consolidated annual accounts for the year ended 31 December 2025, which are included in Grupo Santander’s Form 6-K filed with the U.S. Securities and Exchange Commission on 1 April 2026.
Grupo Santander policies include presenting the interim financial statements for its use in the different markets using the Euro as its presentation currency. The amounts held in other currencies and the balances of entities whose functional currency is not the Euro, have been translated to the presentation currency in accordance with the criteria indicated in Note 2.a to the consolidated annual accounts for 2025. As indicated in that note, for practical reasons, the balance sheet amounts has been converted to the closing exchange rate, the equity to the historical type, and the income and expenses have been converted by applying the average exchange rate of the period; the application of such exchange rate or that corresponding to the date of each transaction does not lead to significant differences in the interim financial statements of Grupo Santander.

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January - June 2026

The accounting policies and methods used in preparing these interim financial statements are the same as those applied in the consolidated annual accounts for 2025 including the following accounting standards with an effective application date 1 January 2026, which are detailed below:
•Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures: (i) amendments to classification and measurement requirements related to the assessment of contractual cash flows of certain financial assets (with ESG characteristics, non-recourse or contractually linked); (ii) an accounting policy option for the derecognition of financial liabilities settled through an electronic payment system is included; (iii) the disclosure requirements related to equity instruments designated at fair value through other comprehensive income are amended; (iv) disclosure requirements are included for financial instruments with contingent characteristics that may modify their contractual cash flows.
•Amendments to IFRS 9 and IFRS 7 - Nature-dependent electricity contracts for electricity contracts dependent on energy sources and susceptible to variations due to uncontrollable factors, such as weather conditions, this modification: (i) clarifies the application of the 'own use' requirements; (ii) allows hedge accounting if these contracts were used as hedging instruments; and, (iii) adds new filing requirements for greater clarity on the impact of these contracts.
•Amendments to IFRS Improvement Cycle: introduces minor amendments, effective from 1 January 2026, to the following standards:
◦IFRS 1 First-time Adoption of International Financial Reporting Standards, for hedge accounting in first adoption.
◦IFRS 7 Financial Instruments: Disclosures: updated references and alignment with IFRS 13, as well as clarifications in the Implementation Guidance.
◦IFRS 9 Financial Instruments: amendment to apply derecognition criteria to lease liabilities recorded by the lessee and replacement of the term 'transaction price' with 'the amount determined in accordance with IFRS 15'.
◦IFRS10 Consolidated Financial Statements: Determining a 'de facto agent'.
◦IAS 7 Statement of Cashflows: replacing the term 'cost method' with 'cost'.
The aforementioned accounting standards and modifications have not had a significant effect on Grupo Santander’s financial statements.
All accounting policies and measurement bases with a material effect on the interim financial statements for 30 June 2026 were applied in their preparation.
In addition, the Group has implemented a change in the presentation of certain charges in the consolidated income statement. As from the current period, such charges—mainly levies and other expenses—are reported under “Other operating expenses” rather than under “Other provisions”.
During the first half of 2026, the Group continued working on the implementation project of IFRS 18, "Presentation and Disclosure in Financial Statements", which will come into effect on 1 January 2027. With the information analyzed up to the authorization of these interim financial statements, no significant impacts arising from its adoption have been identified.
By the time of the preparation of these interim financial statements, there are no standards pending adoption by the European Union for the current exercise by the IASB with an effective date of 1 January 2026.
c)     Use of critical estimates
The consolidated results and the determination of the consolidated equity are sensitive to the accounting principles and policies, valuation criteria and estimates used by the directors of Banco Santander in preparing the interim financial statements. The main accounting principles, policies, and valuation criteria are indicated in Note 2 of the consolidated annual accounts of the year 2025, except for those indicated in these interim financial statements due to the accounting standards and modifications that have come into effect during the first six months of the year 2026.
The interim financial statements contain estimates made by the senior management of Banco Santander and of the consolidated entities in order to quantify certain of the assets, liabilities, income, expenses and obligations reported in the consolidated entities. These estimates, which were made on the basis of the best information available, relate mainly to the following:
•The income tax expense, which is recognised in interim periods based on the best estimate of the weighted average tax rate expected by Grupo Santander for the full financial year;
•The impairment losses on certain assets – financial assets at fair value through other comprehensive income, financial assets at amortised cost, non-current assets held for sale, investments in subsidiaries, joint ventures and associates, tangible assets and intangible assets;
•The assumptions used in the calculation of the post-employment benefit liabilities and commitments and other obligations;
•The useful life of the tangible and intangible assets;
•The measurement of goodwill impairment arising on consolidation;
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•The calculation of provisions and the consideration of contingent liabilities;
•The fair value of certain unquoted assets and liabilities;
•The recoverability of deferred tax assets;
•The fair value of the identifiable assets acquired and the liabilities assumed in business combinations in accordance with IFRS 3; and
•The measurement of assets under reinsurance contracts and liabilities under insurance contracts.
To update the previous estimates, the Group's management has considered the current macroeconomic scenario, characterized by an uncertain geopolitical environment and its impact on economic activity and inflation, as well as the evolution of monetary and fiscal policies in major economies. The analysis also considers developments of interest rates, credit spreads, and currency movements, along with labor market trends in the geographies in which the Group operates.
In this context, the Group's management has evaluated the main uncertainties caused by the current environment, in particular, in relation to credit risk, maintaining active oversight of clients in geographies and sectors more exposed to international trade tensions, global geopolitical uncertainty and the impact of public debt containment policies or fiscal stimulus measures, liquidity and market risks. All of the above, taking into account the best available information, to estimate the impact on the credit portfolio's impairment provision, and in the debt instruments' interest rates and valuation.
During the six-month period ended on 30 June 2026, there were no additional significant changes to the estimates made at the end of the 2025 financial year, other than those indicated in these interim financial statements.
d)    Contingent assets and liabilities
Note 25 to Grupo Santander's consolidated annual accounts for the year ended 31 December 2025 includes information on the contingent assets and liabilities at that date. There were no significant changes in Grupo Santander's contingent assets and liabilities from 31 December 2025 to the date of formal preparation of these interim financial statements.
e)   Comparative information
The information for the year 2025 contained in these interim financial statements is only presented for comparison purposes with the information relating to the six-month period ended 30 June 2026.
The information contained in the interim income statement for the first six months of 2025 has been modified as a result of the retrospective application of the change in the presentation of certain charges in the amount of EUR 238 million, mainly levies and other expenses, of which EUR 204 million have been reclassified from the line item 'Other provisions' to the line item 'Other operating expenses' (see Note 1.b).
Likewise, the information in Note 12 related to segment information for June 2025 has been restated, in accordance with the changes in the segments' composition of Grupo Santander, as required by IFRS 8 (see Note 12).
In order to interpret the changes in the balances with respect to 31 December 2025, it is necessary to take into consideration the exchange rate effect arising from the volume of foreign currency balances held by the Group in view of its geographic diversity (Note 51.b to the consolidated annual accounts for the annual year ended 31 December 2025) and the impact of the appreciation/depreciation of the various currencies against the euro in the first six months of 2026: Mexican peso (5.81%), US dollar (2.88%), Brazilian real (9.18%), Argentinian peso (0.80%), Pound sterling (1.39%) and Chilean peso (0.63%); as well as the evolution of the average exchange rates between comparable periods: Mexican peso (7.02%), US dollar (-5.45%), Brazilian real (5.09%), Pound sterling (-2.47%) and Chilean peso (1.11%).
f)     Seasonality of the Grupo Santander’s transactions
The business activities carried on by Grupo Santander entities, and their transactions are not cyclical or seasonal in nature. Therefore, no specific disclosures are included in these explanatory notes to the interim financial statements for the six-month period ended 30 June 2026.
g)    Materiality
In determining the note disclosures to be made on the various items in the interim financial statements or other matters, Grupo Santander, in accordance with IAS 34, took into account their materiality in relation to the interim financial statements for the six-month period ended 30 June 2026.
h)    Events after the reporting period
From 1 July to the date of authorization of these interim financial statements for the six months of 2026, no significant events other than those indicated therein have occurred.

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2.    Grupo Santander
Appendices I, II and III to the consolidated annual accounts for the year ended 31 December 2025 provide relevant information on Grupo Santander companies at that date and on the companies accounted for under the equity method.
Also, Note 3 to the aforementioned consolidated annual accounts includes a description of the most significant acquisitions and disposals of companies performed by Grupo Santander in 2025, 2024 and 2023.
The most significant transactions carried out during the first six months of 2026 or pending execution at 30 June 2026 are described below:
Agreement for the acquisition of Webster Financial Corporation
On 3 February 2026, Banco Santander announced that it had reached an agreement to acquire Webster, the parent company of Webster Bank, N.A., for approximately USD 12,200 million (around EUR 10,300 million). Webster shareholders will receive USD 48.75 in cash and 2.0548 Santander shares for each Webster share, resulting in a total consideration of USD 75 per Webster share. Completion of the transaction is expected to take place in the second half of 2026.
Agreement for the sale of 49% of Santander Bank Polska S.A and accelerated placement of ordinary shares
On 9 January 2026, Banco Santander announced an agreement to sell the 49% of the share capital of Santander Bank Polska S.A. (Santander Bank Polska) to Erste Group Bank AG at a price of 584 zlotys per share, as well as the 50% of Santander Towarzystwo Funduszy Inwestycyjnych S.A. (TFI, the asset management business in Poland) owned directly by Banco Santander, S.A., for a total amount of EUR 7,035 million.
Following these transactions and the accelerated placement of ordinary shares announced on 2 December 2025, representing approximately 3.5% of its share capital, Banco Santander holds 9.7% of Santander Bank Polska's share capital (58.7% as of 31 December 2025).
The remaining share capital has been classified under the heading 'Financial assets at fair value through other comprehensive income - Equity instruments', initially recognised at the loss of control-date fair value, amounting to EUR 1,310 million.
The profit (loss) for the year from discontinued operations as at 30 June 2026 amounts to EUR 1,895 million, entirely attributable to the net gain on disposal after deducing related costs. As the transaction was completed in the first days of the fiscal year, no significant operating results were recognised during the period.
The main additional accounting effects arising from the transaction have been as follows:
•Disposal of assets and liabilities previously classified as held for sale amounted to EUR 9,098 million.
•Disposal of non-controlling interests amounted to EUR 3,274 million.
•Reclassification to accumulated losses through other comprehensive income, mainly due to foreign currency balance translation differences amounted to EUR 697 million.
Additionally, as part of this transaction, on 23 December 2025, Santander Consumer, S.A. acquired 60% of Santander Consumer Bank Polska, which was owned by Santander Bank Polska, for PLN 3,105 million (EUR 726 million). This transaction had no significant impact on the Group´s consolidated financial statements.

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Agreement for the acquisition of TSB Banking Group Limited

As of 30 April 2026, following the receipt of the relevant regulatory approvals and the satisfaction of the conditions to which the transaction was subject, Banco Santander completed the acquisition of 100% of TSB Banking Group Limited ('TSB') from Banco de Sabadell, for a cash consideration of GBP 2,867 million (EUR 3,318 million). TSB is a retail banking franchise in the United Kingdom, operating primarily in the personal and small business banking segments, and it will be integrated into Santander UK.

For the purposes of the Group’s consolidated financial statements, the business combination has been accounted for using the acquisition method under IFRS 3, and since the acquisition date TSB has been fully consolidated in the Group’s consolidated financial statements.

In accordance with IFRS 3, the Group has measured the identifiable assets acquired and liabilities assumed at fair value. Such fair values are provisional and may be finalized within the one-year measurement period permitted under the standard. In this regard, the valuations performed by the Group represent the best estimates available as of the date of authorization of these Interim Financial Statements and are therefore provisional in nature and should not be considered final. Nevertheless, the Group does not expect significant changes to these amounts before the expiry of the measurement period available to finalize the valuation. The detail of the provisional fair values of the identifiable assets acquired and liabilities assumed at the acquisition date is set out below:

30 April 2026
EUR Million
Cash and balances with central banks5,270
Financial instruments3,953
Deposits with credit institutions223
Loans to customers41,583
Financial assets at fair value through other comprehensive income517
Intangible assets (*)427
Tangible assets169
Other assets205
Total assets52,347
Cash and balances with central banks689
Financial instruments614
Loans from customers40,483
Debt securities in issue and other financial liabilities5,603
Subordinated debt345
Other liabilities1,778
Total liabilities49,512
Net assets / (liabilities)2,835
Consideration transferred for the business combination3,318
Other equity instruments acquired294
Goodwill777
(*) In the purchase price allocation exercise, intangible assets amounting to EUR 393 million were identified, mainly associated with customer deposits.


Goodwill arose as the fair value of the net assets acquired was lower than the consideration transferred. The goodwill mainly reflects the expected revenue and cost synergies arising from the business combination and the benefits of future technology integration. The goodwill recognized is not expected to be deductible for corporate income tax purposes.

The contribution of the acquired business to the Group’s attributable profit from the acquisition date, and the impact on the Group’s attributable profit assuming the transaction had been completed on 1 January 2026, are not material.

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3.    Shareholder remuneration system and earnings per share
a)   Shareholder remuneration system
The cash remuneration paid by Banco Santander to its shareholders in the first six months of 2026 and 2025 was as follows:

30-06-202630-06-2025
% of par
value		Euros per
share		Amount
(EUR million)		% of par
value		Euros per
share		Amount
(EUR million)
Ordinary shares25.00 %0.125 1,80122.00%0.110 1,643 
Other shares (without vote, redeemable, etc.)—— —— — — 
Total remuneration paid25.00 %0.125 1,80122.00%0.110 1,643 
Dividend paid out of profit25.00 %0.125 1,80122.00%0.110 1,643 
Dividend paid with a charge to reserves or share premium—— —— — — 
Dividend in kind—— —— — — 
Flexible payment———— — — 
At the Board of Directors meeting held on 24 February 2026, it was agreed to pay a complementary dividend in cash against 2025 results of EUR 12.5 cents per share which was paid on 5 May 2026, which was approved by the general meeting of shareholders on 27 March 2026.
Likewise, on 4 February 2026 a second buyback program on account of the 2025 and expected excess capital was launched for a maximum total amount of EUR 5,030 million, of which EUR 1,830 million corresponds to an amount equivalent to 25% of the Group’s underlying profit in the second half of 2025, and the remaining EUR 3,200 million corresponds to 50% of the capital released following completion of the sale of the 49% stake in Santander Bank Polska. A capital reduction resolution approved by the general meeting of shareholders will enable the cancellation of the treasury shares acquired under this second buyback programme.
At the general meeting of shareholders held on 4 April 2025, it was agreed to pay an interim dividend in cash against 2024 results of EUR 11 cents per share agreed by the board of directors on 25 February 2025, which became effective on 2 May 2025. Likewise, on 6 February 2025 a buyback program on account of the 2024 results was started for a maximum amount of EUR 1,587 million, which finalized on June 2025.
b)   Earnings per share from continuing and discontinued operations
i. Basic earnings per share
Basic earnings per share for the period are calculated by dividing the net profit attributable to Grupo Santander for the first six months adjusted by the after-tax amount relating to the remuneration of contingently convertible preference shares and contingently convertible perpetual obligations recognised in equity by the weighted average number of ordinary shares outstanding during the period, excluding the average number of treasury shares held in the period.



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Accordingly:
30-06-2026
30-06-2025
Profit attributable to the Parent (EUR million)8,973 6,833 
Remuneration of contingently convertible preferred securities (CCPS) (EUR million)(318)(310)
8,655 6,523 
Of which:
Profit or Loss from discontinued operations (non controlling interest net) (EUR million)1,895 454 
Profit or Loss from continuing operations (CCPS net) (EUR million)6,760 6,069 
Weighted average number of shares outstanding14,458,003,078 14,995,834,683 
Basic earnings per share (euros)0.60 0.43 
Of which: from discontinued operations (euros)0.13 0.03 
                  from continuing operations (euros)0.47 0.40 

ii. Diluted earnings per share
Diluted earnings per share for the period are calculated by dividing the net profit attributable to Grupo Santander for the first six months adjusted by the after-tax amount relating to the remuneration of contingently convertible preference shares recognised in equity and of perpetual liabilities contingently amortisable in their case by the weighted average number of ordinary shares outstanding during the period, excluding the average number of treasury shares and adjusted for all the dilutive effects inherent to potential ordinary shares (share options, warrants and convertible debt instruments).
Accordingly, diluted earnings per share were determined as follows:
30-06-2026
30-06-2025
Profit attributable to the Parent (EUR million)8,9736,833 
Remuneration of contingently convertible preferred securities (CCPS) (EUR million)(318)(310)
8,655 6,523 
Of which:
Profit or Loss from discontinued operations (non controlling interest net) (EUR million)1,895 454 
Profit or Loss from continuing operations (CCPS net) (EUR million)6,760 6,069 
Weighted average number of shares outstanding14,458,003,078 14,995,834,683 
Dilutive effect of options/receipt of shares82,062,704 81,043,722 
Adjusted number of shares14,540,065,782 15,076,878,405 
Diluted earnings per share (euros)0.60 0.43 
Of which: from discontinued operations (euros)0.13 0.03 
                  from continuing operations (euros)0.47 0.40 








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4.    Remuneration and other benefits paid to Banco Santander’s directors and senior managers
Note 5 to Grupo Santander’s consolidated annual accounts for the year ended 31 December 2025 details the remuneration and other benefits to members of Banco Santander’s Board of Directors and senior management in 2025.
Following is a summary of the most significant data on the remunerations and benefits for the six-month periods ended 30 June 2026 and 2025:
Remuneration of members of the board of directors (1)
EUR thousand
30-06-2026
30-06-2025
Members of the board of directors: (2)
Remuneration concept
Fixed salary remuneration of executive directors3,4573,292
Variable salary remuneration of executive directors— — 
Directors' fees537622
Bylaw-stipulated emoluments (annual emolument)2,0952,021
Other1,7502,361
7,839 8,296 
1.The Notes to the consolidated annual accounts for 2026 will contain detailed and complete information on the remuneration paid to all the directors, including executive directors.
2.Ms. Homaira Akbari stepped down as member of the board of directors on 27 March 2026. From 12 May 2026, Ms. Deborah Stern Vieitas joined the board of directors.

Other benefits of members of the board of directors
EUR thousand
30-06-2026
30-06-2025
Members of the board of directors
Other benefits
Advances— — 
Loans granted230 262 
Pension funds and plans: Endowments and/or contributions (1)1,284 1,208 
Pension funds and plans: Accumulated rights (2)90,265 82,578 
Life insurance premiums634 928 
Guarantees provided for directors— — 
1. These correspond to the endowments and/or contributions made during the first six months of 2026 and 2025 in respect of retirement pensions, widowhood, orphanhood and permanent disability.
2. Corresponds to the rights accrued by the directors in matters of pensions. Additionally, former members of the board had at 30 June 2026 and 30 June 2025 rights accrued for this concept for EUR 41,098 thousand and EUR 42,662 thousand, respectively.

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Remuneration of senior management (1) (2)
The table below includes the corresponding amounts related to remunerations of senior management at 30 June 2026 and 2025, excluding the executive directors:
EUR thousand
30-06-2026
30-06-2025
Senior management (1)
Total remuneration of senior management (2)16,320 15,540 
1.Remunerations received during the first six months by members of the senior management who ceased in their functions by 30 June 2026, amounted to EUR 1,362 thousand (EUR 0 thousand by 30 June 2025).
2.The number of members of Banco Santander's senior management, excluding executive directors, is 15 as of 30 June 2026 (15 persons as of 30 June 2025)
The variable annual remuneration (or bonuses) received for fiscal year 2025, both for directors and the rest of senior management, were included in the information on remuneration included in the annual report for that year. Similarly, the variable remuneration attributable to the 2026 results, which will be submitted for approval by the Board of Directors at the appropriate time, will be included in the financial statements for the current year.
Funds and pension plans of senior management
EUR thousand
30-06-2026
30-06-2025
Senior management (1)
Pension funds: Endowments and / or contributions (2)2,387 2,708 
Pension funds: Accumulated rights (3)55,264 53,863 
1.During the first six months of 2026 and 2025, no contributions were made to pension funds for members who had ceased in their functions during those periods.
2.Corresponds to the allocations and/or contributions made during the first six months of 2026 and 2025 as retirement pensions.
3.Corresponds to the rights accrued by members of senior management in the area of pensions. In addition, former members of senior management had at 30 June 2026 and 30 June 2025 rights accumulated for this same concept for EUR 77,811 thousand and EUR 73,141 thousand, respectively.
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5.    Financial assets
a)   Breakdown
The detail, by nature and category for measurement purposes, of Grupo Santander's financial assets, other than the balances relating to Cash, cash balances at central banks and other deposits on demand and Hedging derivatives, at 30 June 2026 and 31 December 2025 is as follows, presented by the nature and categories for valuation purposes:
EUR million
30-06-2026
Financial
assets held
for trading		Non-trading
financial
 assets
 mandatorily
 at fair value
 through
profit or loss		Financial
 assets
 designated
 at fair value
 through
profit or loss		Financial
 assets at fair
 value through
 other
 comprehensive
income		Financial
 assets at
 amortised
cost
Derivatives59,246 
Equity instruments23,105 6,278 3,602 
Debt instruments113,686 247 2,894 58,970 165,861 
Loans and advances90,904 1,533 4,990 12,799 1,168,490 
Central Banks18,524 — — — 17,156 
Credit institutions23,072 — 436 355 70,011 
Customers49,308 1,533 4,554 12,444 1,081,323 
Total286,941 8,058 7,884 75,371 1,334,351 

EUR million
31-12-2025
Financial
assets held
for trading		Non-trading
financial
 assets
 mandatorily
 at fair value
 through
profit or loss		Financial
 assets
 designated
 at fair value
 through
profit or loss		Financial
 assets at fair
 value through
 other
 comprehensive
income		Financial
 assets at
 amortised
cost
Derivatives58,355 
Equity instruments22,030 5,815 2,281 
Debt instruments98,568 245 2,894 58,305 140,014 
Loans and advances73,365 1,701 5,152 14,026 1,062,675 
Central Banks14,632 — — — 15,986 
Credit institutions25,967 — 413 1,120 61,513 
Customers32,766 1,701 4,739 12,906 985,176 
Total
252,318 7,761 8,046 74,612 1,202,689 
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Following is the gross exposure of financial assets subject to impairment stages at 30 June 2026 and 31 December 2025:
30-06-2026
31-12-2025
Gross AmountGross Amount
Stage 1Stage 2Stage 3TotalStage 1Stage 2Stage 3Total
Financial assets at fair value through other comprehensive income71,266 428 153 71,847 71,559 737 122 72,418 
Debt instruments58,974 — — 58,974 58,290 20 — 58,310 
Loans and advances12,292 428 153 12,873 13,269 717 122 14,108 
   Central Banks— — — — — — — — 
   Credit institutions 355 — — 355 1,120 — — 1,120 
   Customers11,937 428 153 12,518 12,149 717 122 12,988 
Financial assets at amortised cost1,233,331 88,116 35,463 1,356,910 1,109,395 82,323 32,251 1,223,969 
Debt instruments163,464 1,573 1,498 166,535 138,219 1,460 842 140,521 
Loans and advances1,069,867 86,543 33,965 1,190,375 971,176 80,863 31,409 1,083,448 
   Central Banks17,156 — — 17,156 15,986 — — 15,986 
   Credit institutions69,984 33 — 70,017 61,517 — — 61,517 
   Customers982,727 86,510 33,965 1,103,202 893,673 80,863 31,409 1,005,945 
Total1,304,597 88,544 35,616 1,428,757 1,180,954 83,060 32,373 1,296,387 
On 30 June 2026, Grupo Santander has EUR 859 million (EUR 315 million on 31 December 2025) of exposure in impaired assets purchased with impairment, with a provision of EUR 70 million, which mainly correspond to the business combinations carried out by Grupo Santander. Of the aforementioned amount, EUR 493 million come from the acquisition of TSB (see Note 2).
b)    Impairment allowances of financial assets at amortised cost portfolio
The following is the movement that has taken place, during the six-month periods ended 30 June 2026 and 2025, in the balance of provisions that cover losses due to impairment of assets which comprise the heading balance of the financial assets at amortised cost:
EUR million
30-06-2026
30-06-2025
Balance as at beginning of period21,595 22,326 
Impairment losses charged to income for the period7,394 7,314 
Of which:
Impairment losses charged to income14,814 14,514 
Impairment losses reversed with a credit to income(7,420)(7,200)
Write-off of impaired balances against recorded impairment allowance(6,350)(6,780)
Exchange differences and other778 (1,774)
Balance as at end of period23,417 21,086 
Of which, relating to:
Impaired assets15,443 13,607 
Other assets7,974 7,479 
Of which:
Individually calculated2,850 2,628 
Collectively calculated20,567 18,458 
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Previously written-off assets recovered during the first six months of 2026 and 2025 amount to EUR 843 million and to EUR 845 million, respectively. Considering these amounts, the recorded impairment of financial assets at amortised cost is EUR 6,551 million and EUR 6,469 million at 30 June 2026 and 30 June 2025.
Following is the movement of the loan loss provision broken down by impairment stage of loans and advances to customers recognised under 'Financial assets at amortised cost' as at 30 June 2026 and 30 June 2025:
EUR million
30-06-2026
Stage 1Stage 2Stage 3Total
Impairment allowance as at beginning of period2,975 4,623 13,478 21,076 
Transfers between stages(577)484 4,702 4,609 
Net changes of the exposure and modifications in the credit risk850 (485)2,383 2,748 
Write-offs— — (6,298)(6,298)
Exchange differences and other(94)75 543 524 
Carrying amount at end of period3,154 4,697 14,808 22,659 
EUR million
30-06-2025
Stage 1Stage 2Stage 3Total
Impairment allowance as at beginning of period3,281 4,735 13,967 21,983 
Transfers between stages(769)596 3,925 3,752 
Net changes of the exposure and modifications in the credit risk663 (469)3,313 3,507 
Write-offs— — (6,717)(6,717)
Exchange differences and other(217)(411)(1,208)(1,836)
Carrying amount at end of period2,958 4,451 13,280 20,689 
c)  Impaired assets of financial assets at amortised cost portfolio
The movement during the six-month periods ended 30 June 2026 and 2025, in the balance of financial assets classified at amortised cost and considered impaired by reason for the credit risk is as follows:
EUR million
30-06-2026
30-06-2025
Balance as at beginning of period32,297 34,206 
Net additions8,564 6,119 
Written-off assets(6,350)(6,780)
Perimeter Changes502 — 
Exchange differences and other1,044 (2,549)
Balance at end of period36,057 30,996 
This amount, after deducting the related allowances, represents Grupo Santander's best estimate of the discounted value of the flows that are expected to be recovered from the impaired assets.
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d)  Collaterals received
Following is the breakdown of the value of the collaterals received to ensure the collection of the financial assets that comprise the heading of financial assets at amortized cost, distinguishing between real collaterals and other collaterals at 30 June 2026 and 31 December 2025:
EUR million
30-06-2026
31-12-2025
Real collaterals value673,085 604,281 
Of which: Impaired 11,857 11,072 
Other collaterals value102,125 100,726 
Of which: Impaired 2,218 1,809 
Total value of the collaterals received775,210 705,007 

e)  Fair value of financial assets not measured at fair value
Following is a comparison of the carrying amounts of Grupo Santander’s financial assets measured at other than fair value and their respective fair values at 30 June 2026 and 31 December 2025:
EUR million
30-06-2026
31-12-2025
Carrying
amount		Fair 
value		Carrying
amount		Fair 
value
Loans and advances1,168,490 1,167,161 1,062,675 1,062,981 
Debt instruments165,861 164,914 140,014 139,242 
ASSETS1,334,351 1,332,075 1,202,689 1,202,223 
The main valuation methods and inputs used in the estimation of the fair value of the financial assets of the previous table are detailed in Note 51.c of the consolidated annual accounts for the year 2025.
6.    Non-current assets held for sale and liabilities associated with non-current assets held for sale
The detail, by nature, of Grupo Santander’s non-current assets held for sale and liabilities associated with non-current assets held for sale at 30 June 2026 and 31 December 2025 is as follows presented by nature:
EUR million
30-06-2026
31-12-2025
Tangible assets2,8572,850
Foreclosed assets2,4872,487
      Of which Property assets in Spain 1,6431,705
Other tangible assets held for sale370363
Entities held for sale—72,148
Santander Bank Polska (Note 2)—72,148
Other assets913
Total Assets associated with non-current assets held for sale2,866 75,011 
EUR million
30-06-2026
31-12-2025
Entities held for sale
Santander Bank Polska (Note 2)—62,995
Total Liabilities associated with non-current assets held for sale— 62,995 
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The balance of the provisions for tangible assets at 30 June 2026 is EUR 2,241 million (EUR 2,357 million at 31 December 2025). The charges recorded in the first six months of 2026 and 2025 amounted to EUR 30 million and EUR 54 million, respectively, and the recoveries undergone during those periods amount to EUR 12 million and EUR 7 million, respectively.
Assets and liabilities from entities held for sale
As mentioned in Note 2, on 9 January 2026 the sale of 49% of the share capital of Santander Bank Polska and 50% of its asset management business in Poland to Erste Group Bank AG was completed.
The changes in the accounting balances of the Polish business for sale between 31 December 2025, and the closing date of the transaction, 9 January 2026, are not material for the purposes of these consolidated condensed interim financial statements.
The consolidated condensed balance sheet as of 31 December 2025 the consolidated condensed income statement, and the consolidated statement of cash flows for the first six months of 2025 for the Polish business for sale are included below:
Condensed balance sheets of companies held for sale - Santander Bank Polska
EUR million
Condensed assets
31-12-2025
Cash, cash balances at central banks and other deposits on demand2,515
Financial assets held for trading1,956
Financial assets designated at fair value through other comprehensive income8,173
Financial assets at amortised cost55,642
Intangible assets1,335
Tax assets1,224
Other assets1,303
TOTAL ASSETS72,148
EUR million
Condensed liabilities
31-12-2025
Financial liabilities held for trading842
Financial liabilities at amortised cost59,704
Provisions603
Tax liabilities1,335
Other liabilities511
TOTAL LIABILITIES62,995
EUR million
Other comprehensive income
31-12-2025
Items that will not be reclassified to profit or loss56
Actuarial gains or losses on defined benefit pension plans—
Changes in the fair value of equity instruments measured at fair value through other comprehensive income56
Items that may be reclassified to profit or loss(590)
Hedges of net investments in foreign operations (effective portion)(522)
Exchange differences(164)
Cash flow hedges (effective portion)98
Debt instruments at fair value with changes in other comprehensive income8
Share in other income and expenses recognised in investments, joint ventures and associates(10)

January - June 2026
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Condensed income statements of companies held for sale - Santander Bank Polska
EUR million
Condensed consolidated income statements
01-01-2025 to
30-06-2025
Interest Margin1,505
Dividend income3
Investments accounted for using the equity method14
Net commissions342
Net trading income37
Other operating results(73)
Total income1,828
Administrative expenses, depreciation and amortisation cost(501)
Impairment of financial assets (*)
(121)
Other results and provisions(243)
Profit before taxes963
Tax expense(237)
Profit of the year726
(*) Of which EUR -63 million correspond to renegotiations or contractual modifications as of 30 June 2025.

Condensed statements of cash flows of companies held for sale - Santander Bank Polska
EUR million
Condensed consolidated statements of cash flows
30-06-2025
A) Cash flows from operating activities430
B) Cash flows from investing activities(11)
C) Cash flows from financing activities(466)
D) Effect of foreign exchange rate differences9
E) Net increase/(decrease) in cash and cash equivalents(38)
Effect on net cash inflows from discontinued operations - Sale of Santander Bank Polska
EUR million
30-06-2026
Cash and cash equivalents disposed of(2,515)
Consideration received satisfied in cash - Santander Bank Polska7,035
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7.   Tangible assets
a)   Changes in the period
In the first six months of 2026 and 2025, tangible assets (rights of use are not included) were acquired for EUR 2,844 million and EUR 3,197 million, respectively.
Likewise, in the first six months of 2026 and 2025 tangible asset items were disposed of with a carrying amount of EUR 2,923 million and EUR 2,927 million, generating a net profit of EUR 12 million and EUR 1 million, respectively.
b)   Property, plant and equipment purchase commitments
At 30 June 2026 and 2025, Grupo Santander did not have any significant commitments to purchase property, plant and equipment items.
c) Leasing rights
As of 30 June 2026, Grupo Santander has tangible assets under lease for the amount of EUR 1,607 million (EUR 1,556 million at 31 December 2025).
8.    Intangible assets
The detail of Intangible Assets - Goodwill at 30 June 2026 and 31 December 2025, based on the cash-generating units giving rise thereto, is as follows:
EUR million
30-06-2026
31-12-2025
Banco Santander (Brazil)3,309 3,031 
United Kingdom (*)1,398 609 
SAM Investment Holdings Limited1,382 1,444 
Santander Consumer Germany1,304 1,304 
Santander Portugal1,040 1,040 
Santander España998 998 
Santander US Auto971 943 
Santander Holding USA (ex. Auto)787 765 
Grupo Financiero Santander (Mexico)489 463 
Banco Santander - Chile473 470 
Ebury Partners329 326 
Santander Consumer Nordics218 211 
Other entities445 354 
Total Goodwill13,143 11,958 
(*) United Kingdom includes both Santander UK and TSB Banking Group Limited.


During the first six months of 2026 there has been an increase in goodwill of EUR 1,185 million, mainly due to the initial recognition of goodwill amounting to EUR 777 million arising from the acquisition of TSB Banking Group Limited. This amount has been determined on a provisional basis in accordance with IFRS 3, as further described in Note 2. To a lesser extent, the increase also reflects foreign exchange differences (see Note 11), which, in accordance with the applicable accounting standards, have been recognised through the heading 'Other comprehensive income - Items that may be reclassified subsequently to profit or loss - Foreign currency translation' within equity in the Condensed Consolidated Statement of Recognised Income and Expense.

Note 17 of the consolidated annual accounts for the year ended 31 December 2025 includes detailed information on the procedures followed by Grupo Santander to analyse the potential impairment of the goodwill recognised with respect to its recoverable amount and to recognise the related impairment losses, where appropriate.
In accordance with IAS 36, a Cash Generating Unit (CGU) to which goodwill has been assigned should be subjected to an annual impairment test, and when there are signs of impairment.
In accordance with all mentioned before and the analysis made of the information available on the evolution of the different cash-generating units that could reveal the existence of indications of impairment, the directors of the Grupo Santander have concluded that during the first six months of 2026 , there were no triggers that required the recording of impairments.
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9.   Financial liabilities
a)   Breakdown
The following is a breakdown of Grupo Santander's financial liabilities, other than the balances corresponding to the Derivatives - hedge accounting heading, as of 30 June 2026 and 31 December 2025, presented by nature and categories for valuation purposes:
EUR million
30-06-2026
31-12-2025
Financial
liabilities
held for
trading		Financial
liabilities
designated at
fair value through
profit or loss		Financial
liabilities at
amortised cost		Financial
liabilities
held for
trading		Financial
liabilities
designated at
fair value through
profit or loss		Financial
liabilities at
amortised cost
Derivatives52,319 51,968 
Short Positions41,956 44,015 
Deposits99,142 28,164 1,161,212 75,563 30,440 1,072,384 
Central banks7,833 435 17,217 12,385 3,086 18,542 
Credit institutions44,141 1,515 83,615 27,058 1,424 74,692 
Customer47,168 26,214 1,060,380 36,120 25,930 979,150 
Debt instruments— 15,221 332,846 — 11,686 312,704 
Other financial liabilities— 22 49,718 — 22 36,096 
Total
193,417 43,407 1,543,776 171,546 42,148 1,421,184 
b)   Information on issuances, repurchases or redemptions of debt instruments issued
The detail of the balance of debt instruments issued according to their nature is:
EUR million
30-06-2026
31-12-2025
Bonds and debentures outstanding269,438 253,893 
Subordinated30,911 28,859 
Promissory notes and other securities47,718 41,638 
Total debt instruments issued348,067 324,390 
The detail, at 30 June 2026 and 2025, of the outstanding balance of the debt instruments, excluding promissory notes, which at these dates had been issued by Banco Santander or any other Group entity is disclosed below. Also included is the detail of the changes in this balance in the first six months of 2026 and 2025:

EUR million
30-06-2026
Opening balance as at 01-01-2026PerimeterIssuances or placementsRepurchases or
redemptions		Exchange
rate and other
adjustments		Closing balance as at 06-30-26
Bonds and debentures outstanding253,893 4,874 59,911 (53,295)4,055 269,438 
Subordinated28,859 5 2,696 (1,655)1,006 30,911 
Bonds and debentures outstanding and subordinated liabilities issued282,752 4,879 62,607 (54,950)5,061 300,349 

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EUR million
30-06-2025
Opening balance as at 01-01-2025PerimeterIssuances or placementsRepurchases or
redemptions		Exchange
rate and other
adjustments		Closing balance as at 06-30-25
Bonds and debentures outstanding252,765 — 37,180 (32,874)(12,180)244,891 
Subordinated35,461 — 278 (3,147)(1,641)30,951 
Bonds and debentures outstanding and subordinated liabilities issued288,226 — 37,458 (36,021)(13,821)275,842 
Below is information on the main issuances, placements and redemptions carried out by Banco Santander, S.A. during the first six months of 2026 and 2025:
On 11 June 2026, Banco Santander, S.A. proceeded to buyback for subsequent early amortization for a total nominal amount of USD 701.6 million contingent convertible preferred securities into ordinary shares with ISIN US05971KAH23, which are listed on the "New York Stock Exchange" (the "CCPS"). Following this buyback, the outstanding nominal amount was reduced to USD 298.4 million.
On 3 June 2026, Banco Santander, S.A. carried out an issuance of newly issued contingent convertible preferred securities into the Bank´s ordinary shares (CCPS) in a total nominal amount of USD 1,500 million. The issuance was priced at par, and the distribution on the CCPS, the payment of which is subject to certain conditions and is also discretionary, was set at 7.25% payable quarterly for the first ten years. Thereafter, it will be reset every five years at a rate equal to the five-years U.S. Treasury rate plus a margin of 283.7 basis points.
On 22 April 2026, Banco Santander, S.A. issued EUR 1 billion of subordinated debt with a 12-year maturity. The issuance was priced at 99.834% of par value and carries an annual coupon of 4.25% for the first seven years, with an issuer call option in April 2033. if the notes are not redeemed on that date, the coupon will be reset to a fixed rate equal to the five-year Euro swap rate plus 135 basis points.
On 14 January 2026, Banco Santander, S.A. proceeded to prepay all of the contingently convertible Tier 1 preferred shares with ISIN code XS2102912966, for a total nominal amount of EUR 1,033.4 million.
On 18 March 2025, Banco Santander, S.A. carried out an issue of subordinated debt for an amount of EUR 1,500 million and carrying a 2.50% coupon with ISIN code XS1201001572.
On 17 February 2025, Banco Santander, S.A. prepaid EUR 600.8 million out of a total of EUR 1,500 million of the transaction with ISIN XS1384064587 following the tender announcement launched on 6 February 2025.
On 17 February 2025, Banco Santander, S.A. prepaid EUR 563.6 million euros out of a total of EUR 1,000 million of the transaction with ISIN XS1548444816 following the tender announcement launched on 6 February 2025.
c)    Other issuances guaranteed by Grupo Santander
At 31 June 2026 and 2025, there were no debt instruments issued by associates or non-Group third parties (unrelated) that had been guaranteed by Banco Santander or any other Group entity.
d)   Fair value of financial liabilities not measured at fair value
Following is a comparison between the value by which Grupo Santander’s financial liabilities are recorded that are measured using criteria other than fair value and their corresponding fair value at 30 June 2026 and 31 December 2025:
EUR million
30-06-2026
31-12-2025
Carrying amountFair valueCarrying amountFair value
Deposits1,161,212 1,161,811 1,072,384 1,073,147 
Debt instruments332,846 333,653 312,704 314,173 
Liabilities1,494,058 1,495,464 1,385,088 1,387,320 
Additionally, other financial liabilities are accounted for EUR 49,718 million and EUR 36,096 million as of 30 June 2026 and 31 December 2025, respectively.
The main valuation methods and inputs used in the estimation of the fair value of the financial liabilities in the previous table are detailed in Note 51.c of the consolidated annual accounts for 2025, other than those mentioned in these interim financial statements.
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10.   Provisions
a)    Provisions for Pensions and other post-retirements obligations and Other long term employee benefits
The variation experienced by the balance of the Pensions and other post-retirements obligations and other long-term employee benefits from 31 December 2025 to 30 June 2026, is mainly due to net provisions recognised in equity as a result of changes in financial assumptions and other experience adjustments, partially offset by benefit payments, premiums and contributions (see Note 11.d).
b)    Provisions for taxes and other legal contingencies and Other provisions
Set forth below is the detail, by type of provision, of the balances at 30 June 2026 and at 31 December 2025 of Provisions for taxes and other legal contingencies and Other provisions. The types of provisions were determined by grouping together items of a similar nature:
EUR million
30-06-2026
31-12-2025
Provisions for taxes763 720 
Provisions for employment-related proceedings (Brazil)801 594 
Provisions for other legal proceedings1,739 1,675 
Provision for customer remediation1,031 826 
Provision for restructuring534 279 
Other927 899 
5,795 4,993 
Relevant information is set forth below in relation to each type of provision shown in the preceding table:
The provisions for taxes include provisions for tax-related proceedings.
The provisions for employment-related proceedings (Brazil) relate to claims filed by trade unions, associations, the prosecutor’s office and ex-employees claiming employment rights to which, in their view, they are entitled, particularly the payment of overtime and other employment rights, including litigation concerning retirement benefits. The number and nature of these proceedings, which are common for banks in Brazil, justify the classification of these provisions in a separate category or as a separate type from the rest. The Group calculates the provisions associated with these claims in accordance with past experience of payments made in relation to claims for similar items. When claims do not fall within these categories, a case-by-case assessment is performed and the amount of the provision is calculated in accordance with the status of each proceeding and the risk assessment carried out by the legal advisers.
The provisions for other legal proceedings include provisions for court, arbitration or administrative proceedings (other than those included in other categories or types of provisions disclosed separately) brought against Grupo Santander companies.
The provisions for customer remediation include mainly the estimated cost of payments to remedy errors relating to the sale of certain products in the UK, as well as the estimated amount related to the floor clauses of Banco Popular Español, S.A.U. To calculate the provision for customer remediation, the best estimate of the provision made by management is used, which is based on the estimated number of claims to be received and, of these, the number that will be accepted, as well as the estimated average payment per case.
The provisions for restructuring include only the costs arising from restructuring processes carried out by the various Group companies.
Lastly, the Other heading contains very atomized and individually insignificant provisions, such as the provisions to cover the operational risk of the different offices of the Group.
Qualitative information on the main litigation proceedings affecting the Group is provided in Note 10.c.
The Group's general policy is to record provisions for tax and legal proceedings in which the Group assesses the chances of loss to be probable and the Group does not record provisions when the chances of loss are possible or remote. Grupo Santander determines the amounts to be provided for as its best estimate of the expenditure required to settle the corresponding claim based, among other factors, on a case-by-case analysis of the facts and the legal opinion of internal and external counsel or by considering the historical average amount of the loss incurred in claims of the same nature. The definitive date of the outflow of resources embodying economic benefits for the Group depends on each obligation. In certain cases, the obligations do not have a fixed settlement term and, in others, they depend on legal proceedings in progress.
With respect to changes in provisions in the first six months of 2026, for employment and other legal proceedings, in Brazil, provisions of EUR 361 million and EUR 138 million were recorded, making payments of EUR 210 million and EUR 91 million, respectively.

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c)    Litigation and other matters
i. Tax-related litigation
At 30 June 2026 the main tax-related proceedings concerning the Group were as follows:
•Legal actions filed by Banco Santander (Brasil) S.A. and other Group entities to avoid the application of Law 9.718/98, which modifies the basis to calculate Programa de Integraçao Social (PIS) and Contribuição para Financiamento da Seguridade Social (COFINS), extending it to all the entities income, and not only to the income from the provision of services. In relation of Banco Santander (Brasil) S.A. process, in 2015 the Federal Supreme Court (FSC) admitted the extraordinary appeal filed by the Federal Union regarding PIS, and dismissed the extraordinary appeal lodged by the Brazilian Public Prosecutor's Office regarding COFINS contribution, confirming the decision of Federal Regional Court favourable to Banco Santander (Brasil) S.A. of August 2007. The Federal Supreme Court also admitted the appeals related to the other Group entities both for PIS and COFINS. On June 13, 2023, the Federal Supreme Court ruled unfavorably two cases through General Repercussion (Theme 372), including Banco Santander (Brasil) S.A. case. The Bank has filed a new appeal, considering the possible loss as a contingent liability. The cases of the other Group entities are no longer susceptible of appeal and a provision has been recognized for the amount of the estimated loss.
•Banco Santander (Brasil) S.A. and other Group companies in Brazil have appealed against the assessments issued by the Brazilian tax authorities questioning the deduction of loan losses in their income tax returns (Imposto sobre a Renda das Pessoas Jurídicas - IRPJ - and Contribuçao Social sobre o Lucro Liquido -CSLL-) in relation to different administrative processes of various years on the ground that the requirements under the applicable legislation were not met. The appeals, which involve several cases, are pending decision in different administrative and judicial instances. No provision was recognised in connection with the amount considered to be a contingent liability.
•Banco Santander (Brasil) S.A. and other Group companies in Brazil are involved in administrative and legal proceedings against several municipalities that demand payment of the Service Tax on certain items of income from transactions not classified as provisions of services. There are several cases in different judicial instances. A provision was recognised in connection with the amount of the estimated loss.
•Banco Santander (Brasil) S.A. and other Group companies in Brazil are involved in administrative and legal proceedings against the tax authorities in connection with the taxation for social security purposes of certain items which are not considered to be employee remuneration. There are several cases in different judicial instances. A provision was recognised in connection with the amount of the estimated loss.
•In May 2003 the Brazilian tax authorities issued separate infringement notices against Santander Distribuidora de Títulos e Valores Mobiliarios, Ltda. (DTVM, actually Santander Brasil Tecnología S.A.) and Banco Santander (Brasil) S.A. in relation to the Provisional Tax on Financial Movements (Contribuição Provisória sobre Movimentação Financeira) of the years 2000 to 2002. The administrative discussion ended unfavourably for both companies, and on July 3, 2015, filed a lawsuit requesting the cancellation of both tax assessments. The lawsuit was judged unfavourably in first instance. Therefore, both plaintiffs appealed to the court of second instance. In December 2020, the appeal was decided unfavourably, and the judgement was appealed before the higher courts. This case fell within the scope of the Comprehensive Transaction Programme (Programa de Transaçao Integral) established by the Ministry of Finance, and in 2025 a final settlement was reached. The amounts paid under the terms of the Transaction were fully provisioned.
•In December 2010 the Brazilian tax authorities issued an infringement notice against Santander Seguros S.A. (Brasil), (currently Zurich Santander Brasil Seguros e Previdência S.A.), as the successor by merger to ABN AMRO Brasil dois Participações S.A., in relation to income tax (IRPJ and CSLL) for 2005, questioning the tax treatment applied to a sale of shares of Real Seguros, S.A. The administrative discussion ended unfavourably, and the CARF decision has been appealed at the Federal Justice. As the former parent of Santander Seguros S.A. (Brasil) (currently Zurich Santander Brasil Seguros e Previdência S.A.), Banco Santander (Brasil) S.A. is liable in the event of any adverse outcome of this proceeding. No provision was recognised in connection with this proceeding as it is considered to be a contingent liability.
•In November 2014 the Brazilian tax authorities issued an infringement notice against Banco Santander (Brasil) S.A. in relation to corporate income tax (IRPJ and CSLL) for 2009 questioning the tax-deductibility of the amortisation of the goodwill of Banco ABN AMRO Real S.A. performed prior to the absorption of this bank by Banco Santander (Brasil) S.A., but accepting the amortisation performed after the merger. The Bank appealed before the Higher Chamber of CARF, and a final favourable decision was obtained in April 2024. No provision was recognised in connection with this proceeding as it was considered to be a contingent liability.
•Banco Santander (Brasil) S.A. has also appealed against infringement notices issued by the tax authorities questioning the tax deductibility of the amortisation of the goodwill arising on the acquisition of Banco Comercial e de Investimento Sudameris S.A from years 2007 to 2012. In May and October 2024, the appeal related to period 2009 to 2012 was finally rejected by the CARF and the resolution was appealed at the Federal Justice. No provision was recognised in connection with this matter as it was considered to be a contingent liability.
•Banco Santander (Brasil) S.A. and other companies of the Group in Brazil are undergoing administrative and judicial procedures against Brazilian tax authorities for not admitting tax compensation with credits derived from other tax concepts, not having registered a provision for the amount considered to be a contingent liability.
•Banco Santander (Brasil) S.A. is involved in appeals in relation to infringement notices initiated by tax authorities regarding the offsetting of tax losses in the CSLL of year 2009 and 2019. The appeals are pending decision at the administrative level. No provision was recognised in connection with this matter as it is considered to be a contingent liability.
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•Banco Santander (Brasil) S.A. filed a suspensive judicial measure aiming to avoid the withholding income tax (Imposto sobre a Renda Retido na Fonte - IRRF), on payments derived from technology services provided by Group foreign entities. A favorable decision was handed down and an appeal was filed by the tax authority at the Federal Regional Court. The Regional Court has issued a decision upholding the tax authorities' appeal, which has subsequently been challenged by the Bank. No provision was recognized as it is considered to be a contingent liability.
•Banco Santander (Brasil) S.A. filed a lawsuit to exclude the income earned on compulsory deposits held with the Central Bank of Brazil (BACEN) from the PIS and COFINS tax base. In 2024, a favorable decision was rendered, which was appealed by the National Treasury. A provision was recognized for the amounts involved.

•Brazilian tax authorities have issued infringement notices against Getnet Adquirência e Serviços para Meios de Pagamento S.A and Banco Santander (Brasil) S.A. as jointly liable in relation to corporate income tax (IRPJ and CSLL) for 2014 to 2018 questioning the tax-deductibility of the amortization of the goodwill from the acquisition of Getnet Tecnologia Proces S.A., considering that the company would not have complied with the legal requirements for such amortization. The tax assessment notices were appealed to the CARF. In 2024, the CARF issued a favourable partial decision on both infraction notices. In December 2024, the tax authorities issued a new infringement notice for 2019 and 2020. No provision was recognized as it is considered to be a contingent liability.
The total amount for the aforementioned Brazil lawsuits that are fully provisioned is EUR 852 million, and for lawsuits that qualify as contingent liabilities is EUR 5,507 million.
At the date of approval of these interim financial statements, there are other less significant tax disputes.
ii. Non-tax-related proceedings
At 30 June 2026 the main non-tax-related proceedings concerning the Group were as follows:
•Payment Protection Insurance (PPI): AXA France IARD and AXA France Vie (former GE Capital Corporation Group entities, known as Financial Insurance Company Ltd (FICL) and Financial Assurance Company Ltd (FACL), acquired by AXA SA in 2015) (together, AXA France) brought a claim against (i) Santander Cards UK Limited (formerly known as GE Capital Bank Limited (GECB), which was acquired by Banco Santander, S.A. in 2008 and subsequently transferred to Santander UK plc); and (ii) Santander Insurance Services UK Limited (a Banco Santander, S.A. subsidiary) (SISUK and together with GECB the Santander Entities). The claim relates to the allocation of liability for compensation and associated costs in respect of a large number of PPI policies distributed by GECB pre-2005, which were underwritten by FICL and FACL.
On 25 July 2025, the Commercial Court of England and Wales handed down its judgment in relation to the claim brought by AXA France (the Judgment). It found against SISUK in relation to AXA France’s claim pursuant to an indemnity in an agency agreement entered into between GECB, FICL and FACL in 2000 and novated by GECB to SISUK in 2010. It also found GECB negligent in the sale of PPI policies, but this element of the claim was time barred to PPI policies sold in the period between 2002 and 2005 and overlaps with the indemnity claim. The Judgment required the Santander Entities to pay GBP 515 million plus interest of GBP 162 million.
In October 2025 the Santander Entities obtained permission to appeal the findings in the Judgment relating to the application of the indemnity arising from PPI sales occurring before the indemnity had been agreed in December 2000 (Santander Appeal).  In January 2026, AXA France obtained permission to cross-appeal the Commercial Court’s rejection of AXA France’s contribution claim made under the Civil Liability (Contribution) Act 1978 (the AXA France’s cross appeal). A decision on the Santander Appeal and AXA France’s cross appeal is expected in the second half of 2026.
With respect to the Santander Appeal and AXA France’s cross-appeal, there are points of legal interpretation to be resolved and, in the case of the cross-appeal, factual points to be determined. The significant uncertainties make it difficult to predict the timing or the final impact of the resolution of the appeals for the Group.
No customers have suffered loss as a consequence of the claim brought by AXA France or the Judgment, nor does it impact upon past redress paid to customers for PPI complaints.
•Motor Finance Broker Commissions: following the Financial Conduct Authority’s (FCA) Motor Market review in 2019 which resulted in a change in rules in January 2021, Santander Consumer (UK) plc (SCUK) received several of county court claims and complaints in respect of its historical use of discretionary commission arrangements (DCAs) prior to the 2021 rule changes. In January 2024, the FCA commenced a review of the use of DCAs between lenders and credit brokers (the FCA Review). Pending the conclusion of its review, the FCA paused the handling of motor finance commission related complaints. The pause is in place until 31 May 2026, reflecting the extended timeline of the FCA's Review and subsequent Consultation (see below). A claim was issued against SCUK, Santander UK plc and others in the Competition Appeal Tribunal (CAT), alleging that SCUK’s historical DCAs in respect of used car financing operated in breach of the Competition Act 1998. These proceedings have been stayed until the end of December 2026 reflecting the timeline of the challenges to the FCA's final redress scheme published on 30 March 2026 (as is explained below).
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The Santander UK group Holdings recognised a provision of GBP 293.0 million (EUR 353.3 million) in its financial results for 2024 following a decision of the Court of Appeal in Hopcraft, Wrench and Johnson (Hopcraft) stating that motor dealers acting as credit brokers owed fiduciary or disinterested duties to their customers. On 1 August 2025, the Supreme Court overturned this decision finding that commission payments by lenders to motor dealers would not be unlawful on that basis. In addition, the Supreme Court held that an unfair relationship under s.140A of the Consumer Credit Act 1974 had arisen in one of the cases on its facts and awarded the amount of the commission paid by the lender plus interest at a commercial rate as the remedy. It also confirmed that the test for unfairness of the relationship with borrower was highly fact sensitive and it outlined a series of non-exhaustive factors to consider in assessing unfair relationships in this context (indicating that no or partial disclosure was not necessarily enough on its own to constitute an unfair relationship).
Following the Supreme Court’s judgment, on 3 August 2025, the FCA announced that it aimed to publish a consultation on an industry wide redress scheme in early October and that this consultation would be open for six weeks. In early September 2025, the appeal to the Court of Appeal of the High Court’s judicial review of a final decision by the Financial Ombudsman Service against another lender (which alongside the Supreme Court case was highly relevant to the outcome of the FCA’s Review) was discontinued.
Santander UK increased its provision to GBP 461 million (EUR 528.1 million) in its financial results for 2025, further to the publication of the FCA’s consultation paper on 7 October 2025 regarding a proposed industry-wide motor finance consumer redress scheme (the Consultation). This was based on a range of scenarios and assumptions, reflecting an increased likelihood that a higher number of cases than previously predicted could be eligible for redress, that the FCA would seek to impose a remedy that extended beyond reversing any damaging financial consequences caused by any unfair relationships and potential changes to the proposed scheme following responses to the Consultation or publication of the FCA’s final scheme rules.
On 30 March 2026, the FCA published its Policy Statement PS26/3: Motor finance consumer redress scheme. Following its assessment of the final scheme rules, which included several changes to the proposals in the Consultation, Santander UK group decided not to challenge the scheme and to focus on its implementation in order to bring greater certainty to its customers.
Santander UK updated its scenarios and assumptions including operational and legal costs to reflect the final scheme rules. This resulted in an additional charge of GBP 179 million (EUR 207 million), increasing the total provision to GBP 633 million (EUR 725 million), at the upper end of the previously assessed range.
Applications have been made by certain lenders and a consumer group to challenge aspects of the scheme before the Upper Tribunal. On 1 July 2026, the Tribunal made orders providing for the management of those proceedings and partially suspending certain elements of the scheme including sending communications to affected customers and making compensation payments pending determination of the challenges. The substantive hearing is expected to take place by Q1 2027.

At 30 June 2026, Santander UK has a provision of GBP 623 million (EUR 724 million) corresponding to the existing provision at the end of previous quarter after utilization of costs incurred to date.

As a result, the legal and regulatory outcomes, and the nature, extent and timing of any remediation action remain uncertain.

Given the existing uncertainties, including those relating to the potential implementation of the scheme and the outcome of the challenges, the final financial impact of this matter could differ from the provision recorded as of the reporting date.

•Banco Popular´s acquisition: after the declaration of the resolution of Banco Popular, some investors filed claims against the EU’s Single Resolution Board decision, and the FROB's resolution executed in accordance with the aforementioned decision. Likewise, numerous civil lawsuits were filed against Banco Santander, S.A. alleging that the information provided by Banco Popular was erroneous and requesting from Banco Santander, S.A. the restitution of the price paid for the acquisition of the investment instruments or, where appropriate, the corresponding compensation.
In relation to the direct appeals filed before the General Court of the European Union (EGC) and the Court of Justice of the European Union (CJEU), all appeals were either dismissed or discontinued. Currently, there are no ongoing appeals. On 4 February 2026, the National Court issued its first rulings dismissing the actions brought against the FROB’s decision, in application of the judgments of the EGC and the CJEU.
In the civil proceedings, several Spanish judges referred to the CJEU a number of preliminary questions that have already been resolved. In particular, in the judgments of 5 May 2022 (C-410/20) and 5 September 2024 (C-775/22, C-779/22, C-794/22), the CJEU stated that Directive 2014/59/EU on bank resolution prevents shareholders, subordinated debt holders, and holders of equity instruments converted into shares bringing actions against a financial institution subject to a resolution proceeding or against its successor after the resolution, claiming liability for the information contained in the prospectus, under Directive 2003/71/EC, or actions seeking the nullity of the contract of subscription of capital instruments, which, given its retroactive effects, would result in the refund of the value of such securities, plus the interest accrued as of the date of execution of the contract. In its 11 September 2025 resolutions (C-687/23 and C-447/23), the CJEU declared that the above referred TJUE resolutions do not apply to actions pursued prior to the entity’s resolution. There are currently no other preliminary questions under consideration.

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On 4 March 2024, in the context of preliminary proceedings 42/2017, the Central Court of Instruction No. 4 issued a ruling transforming the proceedings into Summary Proceedings and terminating the investigation phase. The ruling considers that the circumstantial evidence resulting from the investigation which could constitute a crime is basically the following: (i) an alleged misrepresentation in the prospectus of the 2016 capital increase of Banco Popular; (ii) an alleged misrepresentation in the annual accounts of Banco Popular for 2015, the interim financial statements for 2016 and the annual accounts for 2016; and (iii) the offer to the market of a distorted amount of regulatory capital, after the capital increase of 2016 (for allegedly having been granted by Banco Popular financing to clients for the subscription of shares in the aforementioned capital increase, without discounting it from the regulatory capital). According to the aforementioned ruling, these facts could constitute the crimes of fraud of investors (art. 282 of the Criminal Code) and accounting falsehood (art. 290 of the Criminal Code). All appeals filed against the ruling have been dismissed.

The accusing parties, including the Public Prosecutor's Office, filed their indictment briefs on 28 October 2024, which included requests for compensation for civil liability and the request that not only the defendants but also several entities are held liable for such compensation, including Banco Santander, S.A., the auditing firm and several insurance companies. Following the filing of the indictment briefs, on 22 November 2024, the Court (Investigating Judge) issued an order for the opening of the oral trial against the defendants and civil liability parties, including Banco Santander, S.A. as a possible civil liable party. However, in line with what was determined by the Spanish National Court and confirmed by the Supreme Court concerning the hypothetical succession of Banco Popular by Banco Santander, S.A., the oral trial has not been opened against the Bank as possible direct civil liable party. Regarding civil liability, the Bank considers that it has no subsidiary civil liability, in light of the CJEU’s judgments of 5 May 2022 (C-410/20), 5 September 2024 (C-775/22, C-779/22, C-794/22) and 11 September 2025 (C-687/23 and C-447/23). Notwithstanding the foregoing, in its 5 October 2022 ruling, the Spanish National Court has stated that this issue shall be resolved within the ongoing proceedings.
The order to open the oral trial states that the plaintiffs have requested compensation for civil liability for a total amount of EUR 2,277.65 million. Additionally, the order rejects the imposition of the guarantee requested by several of the accusing parties, considering that it is unnecessary to secure the outcome of the trial. The defendants and potential civil liable parties submitted their defense writs on 4 February 2025. On 2 March 2026, the order admitting the evidence was issued, and the oral hearing was scheduled to take place from 19 January to 30 June 2027.
The estimated cost of any compensation to shareholders and bondholders of Banco Popular recognized in the 2017 accounts amounted to EUR 680 million, of which EUR 535 million were applied to the commercial loyalty program. On 15 December 2024, Banco Santander, S.A., proceeded to redeem in advance voluntarily all bonds in circulation regarding such commercial action. The CJEU judgements of 5 May 2022 (C-410/20), 5 September 2024 (C-775/22, C-779/22, C-794/22) and 11 September 2025 (C-687/23 and C-447/23) referred above, represented a very significant reduction in the risk associated with these claims.
•German shares investigation: the Bank and other group entities based in the UK - Santander UK plc, Santander Financial Services Plc and Cater Allen International Limited- are involved in investigation and supervisory proceedings conducted by the competent German authorities, in relation to a particular type of tax dividend linked transactions known as cum-ex transactions.
The Group is cooperating with the German authorities. According to the state of the investigations, the result, and the effects for the Group, which may potentially include the imposition of material financial consequences (penalties, and/or disgorgement of proceeds) cannot be reliably anticipated. For this reason, the Group has not recognized any provisions in relation to the potential imposition of financial liabilities.
•Banco Santander was sued in a legal proceeding in which the plaintiff alleges that the Banco Santander breached his contract as CEO of the institution: in the lawsuit, the claimant mainly requested a declaratory ruling upholding the existence, validity and effectiveness of such contract and its enforcement together with the payment of certain amounts. For the case that the main request is not granted, the claimant sought a compensation for a total amount of approximately EUR 112 million or, an alternative relief for other minor amounts. Banco Santander answered to the legal action stating that the conditions to which the appointment of that position was subject to were not met; that the executive services contract required by law was not concluded; and that in any case, the parties could terminate the contract without any justified cause. On 17 May 2021, the plaintiff reduced his claims for compensation to EUR 61.9 million.
On 9 December 2021, the Court upheld the claim and ordered the Bank to compensate the claimant in the amount of EUR 67.8 million. By court order of 13 January 2022, the Court corrected and supplemented its judgment, reducing the total amount to be paid by the Bank to EUR 51.4 million and clarifying that part of this amount (EUR 18.6 million buy out) was to be paid under the terms of the offer letter, i.e., entirely in Banco Santander shares, within the deferral period for this type of remuneration at the plaintiff's former employer and subject to the performance metrics or parameters of the plan in force at the Bank, which was that of 2018. As explained in note 5 of the report of the consolidated annual accounts of the year 2022, the degree of performance of these objectives was 33.3%.
The Bank filed an appeal against the judgment before the Madrid Court of Appeal, which was opposed by the plaintiff. At the same time, the plaintiff filed an application for provisional enforcement of the judgment in the First Instance Court. A court order was issued ordering enforcement of the judgment, and the Bank deposited in the court bank account the full amount provisionally awarded to the claimant, including interest, for an approximate sum of EUR. 35.5 million, within the voluntary compliance period.
On 6 February 2023, Banco Santander was notified with the judgment of 20 January 2023 by which the Madrid Court of Appeal partially upheld the appeal filed by the Bank. The judgment has reduced the amount to be paid by EUR 8 million, which, to the extent that this amount was already paid in the provisional partial enforcement of the judgement of first instance court, must be returned to the Bank together with other amounts for interest, which the appeal judgement also rejects. The plaintiff deposited circa EUR 9.6 million. This amount was received by the Bank on 11 July 2023.
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On 11 April 2023, the Bank filed an extraordinary appeal for procedural infringement and an appeal in cassation against the Madrid Court of Appeal’s judgment before Spanish Supreme Court. The extraordinary and cassation appeals submitted by the Bank were accepted on 26 March 2025 and are pending to be resolved. Existing provisions cover the estimated risk of loss.
•CHF Polish Mortgage Loans (Santander Consumer Bank Poland): in October 2019, the CJEU rendered its decision in relation to the effects of the potential unfairness of certain contractual clauses in CHF-Indexed loan agreements. The CJEU established that it for the national courts to determine the invalidity of a contract where it cannot be maintained without the clause declared unfair and where no supplementary provisions exist that would allow the contract to be maintained. Subsequently, in June 2023, the CJEU confirmed that the effects of such invalidity must be determined in accordance with national law, interpreted in the light of Directive 93/13/EEC, and that claims by financial institutions exceeding the reimbursement of the loan principal and, where applicable, default interest, are contrary to the objectives of that Directive.
In April 2024, the Civil Chamber of the Polish Supreme Court issued a judgment confirming that clauses relating to the mechanism for determining the exchange rate declared abusive cannot be replaced by alternative provisions and that, in the absence of a binding exchange rate, the contract is not enforceable for the parties. With regard to the effects of invalidity, the Supreme Court confirmed the existence of independent restitution claims for each party and ruled out the possibility of claiming interest or other amounts for the use of the funds. Nevertheless, certain aspects of this judgment have been subject to internal debate within the Supreme Court itself, reflecting the complexity and evolving nature of the jurisprudential framework.
In this context, Santander Consumer Bank S.A. estimates legal risk using a model that considers different possible outcomes and regularly review court rulings on this matter in order to assess changes in case law, including the impact of the aforementioned Supreme Court judgment. Settlements are being reached both with customers who have already initiated legal proceedings and with customers who have not yet filed a claim. The model used to calculate provisions for legal risks considers the evolution and expected development of such settlements.
As of 30 June 2026, Santander Consumer Bank S.A. (Poland), held a portfolio of mortgages denominated in or indexed to CHF amounting to approximately PLN 523.4 million (EUR 123.9 million). As of the same date, the total amount adjusted against the gross carrying amount of loans in accordance with IFRS 9, together with the provisions recognised under IAS 37, amounts to PLN 775.1 million (EUR 180.4 million), of which PLN 410.1 million (EUR 95.4 million) corresponds to adjustments to the gross carrying amount under IFRS 9 and PLN 365.0 million (EUR 84.9 million) to provisions recognised under IAS 37. The adjustment to gross carrying amount in accordance with IFRS9 and under IAS 37 during the first 6 months of 2026 are not material. Other costs related to the dispute amounted to PLN 62.3 million (EUR 14.7 million).
The Group continues to monitor the evolution of legal proceedings and to periodically review the adequacy of the provisions recognised, which represent the best estimate of the risk existing as of 30 June 2026.
•Banco Santander Mexico: dispute regarding a testamentary trust constituted in 1994 by Mr. Roberto Garza Sada in Banca Serfin (currently Santander Mexico) in favor of his four sons in which he affected shares of Alfa, S.A.B. de C.V. (respectively, Alfa and the Trust). During 1999, Mr. Roberto Garza Sada instructed Santander México in its capacity as trustee to transfer 36,700,000 shares from the Trust's assets to his sons and daughters and himself. These instructions were ratified in 2004 by Mr. Roberto Garza Sada before a Notary Public.
Mr. Roberto Garza Sada passed away on 14 August 2010 and subsequently, in 2012, his daughters filed a complaint against Santander Mexico alleging it had been negligent in its trustee role. The lawsuit was dismissed at first instance in April 2017 and on appeal in 2018. In May 2018, the plaintiffs filed an appeal (recurso de amparo) before the First Collegiate Court of the Fourth Circuit based in Nuevo León, which ruled in favor of the plaintiffs on 7 May 2021, annulling the 2018 appeal judgment and condemning Santander Mexico to the petitions claimed, consisting of the recovery of the amount of 36,700,000 Alfa shares, together with dividends, interest and damages.
Since 2021, Santander Mexico has filed before the Supreme Court of Justice of the Nation a constitutional review challenge (recurso de revisión constitucional) against the referred decision which was initially rejected by the Supreme Court; and several appeals (recursos de reclamación) against such rejection. On 25 June 2025, one of the appeals filed by the Bank was accepted, and this decision was extended to a remaining one, which will now be resolved. In case that these appeals are resolved favorably to the Bank, the Supreme Court will decide on the merits of the constitutional review against the judgment which condemned the Bank.
In parallel to the foregoing, the Bank also filed an amparo against the judgment favorable to the plaintiffs rendered by the First Collegiate Court of the Fourth Circuit in the State of Nuevo León before the Collegiate Courts of such State. In April 2026, the Supreme Court of Justice of the Nation admitted the request filed by the Bank in 2024 to hear and resolve the amparo appeal.

The challenges and appeals filed by the Bank imply that the judgment rendered in favour of the plaintiffs is not final, and Santander México believes that the actions taken should prevail and reverse the decision against it. The impact of a potential unfavorable resolution for Santander México will be determined in a subsequent proceeding and will also depend on the additional actions that Santander México may take in its defense, so it is not possible to reliably determine it at this time. At the current stage of the proceedings, the provisions recorded are considered sufficient to cover the risks deriving from this claim.
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•Mortgage Expenses: In December 2015 the Spanish Supreme Court ruled that mortgage clauses relating to the payment of fees associated to formalizing the mortgage were abusive. On 27 November 2018, the Supreme Court agreed that the taxpayer of the documented legal acts stamp duty tax (IAJD) on the mortgage loans should be the borrower. On 9 November 2018, RDL 17/2018 came into force and modified the Law of the IAJD, establishing that the taxpayer is the Bank. On 23 January 2019, the Supreme Court ruled the distribution of the same must be 50% between the Bank and the borrower in public notary expenses and agency expenses. The Supreme Court also ruled that the Bank must pay 100% of the Registry. On 26 October 2020, the Supreme Court ruled that the Bank is fully responsible for the management expenses; and on 27 January 2021, the Supreme Court ruled that the Bank is also responsible for the valuation expenses.
The CJEU judgment of 25 January 2024 established that, for the purposes of calculating the limitation period, it is necessary that the consumer is aware of their rights and of the possibility that their clause may be null and void. The CJEU also stated that it cannot be presumed that the consumer has knowledge of national case law on consumer rights, even if such case law is well established. The CJEU judgment of 25 April 2024, while declaring that the specific judgment declaring the nullity of the clause constitutes an appropriate moment for the limitation period to commence, added that this is without prejudice to the professional’s ability to prove that the consumer had, or could reasonably have had, knowledge of the unfair nature of the clause in question prior to that decision being issued. The Spanish Supreme Court, in its judgment of 14 June 2024, confirmed that the commencement of the limitation period requires the professional to prove, in each individual case, that the consumer was aware of the unfair nature of the clause, providing specific evidence regarding their dealings with that consumer. The recorded provision includes the best estimate of Group’s liability for this matter.
Banco Santander, S.A. and the other Group companies are subject to claims and, therefore, are party to certain legal proceedings incidental to the normal course of their business including those in connection with lending activities, relationships with employees and other commercial or tax matters additional to those referred to here.
With the information available to it, the Group considers that, at 30 June 2026, it had reliably estimated the obligations associated with each proceeding and had recognized, where necessary, sufficient provisions to cover reasonably any liabilities that may arise as a result of these tax and legal risks. Those cases in which provisions have been registered but are not disclosed are justified on the basis that it would be prejudicial to the proper defense of the Group. Subject to the qualifications made, the Group believes that any liability arising from such claims and proceedings will not have, overall, a material adverse effect on the Group’s business, financial position, or results of operations.

















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11.   Equity
In the six-month periods ended 30 June 2026 and 2025 there were no quantitative or qualitative changes in Grupo Santander's equity other than those indicated in the condensed consolidated statements of changes in total equity.
a)    Capital
Banco Santander's share capital at 30 June 2026 and 31 December 2025 consisted of EUR 7,345 million, represented by 14,689,319,502 shares of EUR 0.50 of nominal value each and all of them of a unique class and series.
b)    Share premium
Includes the amount paid by the bank's shareholders in capital issuances in excess of par value.
c) Breakdown of other comprehensive income - Items not reclassified to profit or loss and Items that may be reclassified to profit or loss
EUR million
30-06-2026
31-12-2025
Other comprehensive income accumulated
(33,913)
(37,974)
 Items not reclassified to profit or loss
(3,160)
(4,121)
Actuarial gains or losses on defined benefit pension plans(3,895)(3,896)
Non-current assets held for sale— 56 
Share in other income and expenses recognised in investments, joint ventures and associates6 1 
Other valuation adjustments— — 
Changes in the fair value of equity instruments measured at fair value with changes in other comprehensive income744 (250)
Inefficacy of fair value hedges of equity instruments measured at fair value with changes
in other comprehensive income		— — 
Changes in the fair value of equity instruments measured at fair value with changes
in other comprehensive income (hedged item)		253 208 
Changes in the fair value of equity instruments measured at fair value with changes
in other comprehensive income (hedging instrument)		(253)(208)
Changes in the fair value of financial liabilities measured at fair value through profit or loss
attributable to changes in credit risk		(15)(32)
  Items that may be reclassified to profit or loss
(30,753)
(33,853)
Hedge of net investments in foreign operations (effective portion)(8,181)(7,343)
Exchange differences(21,864)(25,475)
Hedging derivatives (effective portion)154 333 
Changes in the fair value of debt instruments measured at fair value with changes in other comprehensive income(577)(372)
Hedging instruments (items not designated)22 (11)
Non-current assets held for sale— (590)
Share in other income and expenses recognised in investments, joint ventures and associates(307)(395)
d) Other comprehensive income – Items not to be reclassified to profit or loss – Actuarial gains or losses on defined benefit pension plans.
The balance of the heading Other accumulated comprehensive income - Items not reclassified to profit or loss - Actuarial gains or losses on defined benefit pension plans, includes the actuarial gains or losses and the return on the assets assigned to the plan, less administration costs and plan's own taxes, and any change in the effects of the asset limit, excluding amounts included in net interest on net defined benefit liability (asset). Its variation is shown in the consolidated condensed statement of recognized income and expense.
During the first six months of 2026, the amount of actuarial losses (net of actuarial gains) has increased by EUR 159 million. The main impacts are:
In first place, due to the higher addition against equity amounting to EUR 37 million, with the following breakdown:
•Increase of EUR 48 million in the accumulated actuarial losses relating to the Group´s entities in the United Kingdom, mainly due to the evolution of the asset portfolio, experience adjustments and movements in long-term inflation -increase from 2.90% to 2.96%- partially offset by movements in the discount rate -increase from 5.58% to 5.92%-.
•Decrease of EUR 11 million in the cumulative actuarial losses relating to the Group's businesses in other geographical areas.
In second place, due to the evolution of exchange rates, a EUR 122 million increase, mainly due to the appreciation of the Brazilian real and the sterling pound.
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e) Other comprehensive income - Items not reclassified to profit or loss – Changes in the fair value of equity instruments measured at fair value with changes in other comprehensive income
Includes the net amount of unrealised fair value changes in equity instruments at fair value with changes in other comprehensive income.
Below is a breakdown of the composition of the balance as of 30 June 2026 and 31 December 2025 under 'Other comprehensive income - Items not reclassified to profit or loss - Changes in the fair value of equity instruments measured at fair value with changes in other comprehensive income' depending on the geographical origin of the issuer:
EUR million
30-06-2026
31-12-2025
Revaluation gainsRevaluation lossesNet revaluation gains/(losses)Fair valueRevaluation gainsRevaluation lossesNet revaluation gains/(losses)Fair value
Domestic
Spain56 (383)(327)117 47 (1,326)(1,279)133 
International
Rest of Europe262 (31)231 1,669 75 (81)(6)186 
United States23 (1)22 35 23 (1.00)22 36 
America and rest of the world818 — 818 1,781 1,013 — 1,013 1,926 
1,159 (415)744 3,602 1,158 (1,408)(250)2,281 
Of which:
Listed1,022 (58)964 3,328 1,033 (49)984 1,993 
Unlisted137 (357)(220)274 125 (1,359)(1,234)288 
f) Other comprehensive income - Items that may be reclassified to profit or loss – Hedges of net investments in foreign operations (effective portion) and exchange differences
Other comprehensive income - Items that may be reclassified to profit or loss - Hedges of net investments in foreign operations (effective portion) includes the net amount of the changes in value of hedging instruments in hedges of net investments in foreign operations, in respect of the portion of these changes considered to be effective hedges.
Other comprehensive income - Items that may be reclassified to profit or loss - Exchange differences includes the net amount of exchange differences arising on non-monetary items whose fair value is adjusted against equity and the differences arising on the translation to euros of the balances of the consolidated entities whose functional currency is not the euro.
The net variation of both headings recognised during the first six months of 2026 in the interim condensed consolidated statement of recognised income and expenses, reflects the impact of the evolution of the currencies during the year, reflecting mainly the general appreciation of the currencies Brazilian real, Mexican peso, US dollar, Argentine peso and Pound sterling (see Note 1.e).
Of this variation, a capital gain of EUR 395 million corresponds to the valuation at the closing exchange rate of goodwill for the first six months of 2026 (see Note 8).
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g) Other comprehensive income – Items that may be reclassified to profit or loss – Changes in the fair value of debt instruments measured at fair value through other comprehensive income - Loans and advances and debt instruments
Includes the net amount of unrealised fair value changes in debt instruments- loans and advances and debt instruments- at fair value through other comprehensive income.
Below is a breakdown of the composition of the balance as of 30 June 2026 and 31 December 2025 under Other comprehensive income - Items that may be reclassified to profit or loss - Changes in the fair value of debt instruments measured at fair value through other comprehensive income depending on the type of instrument:
EUR Million
30-06-2026
31-12-2025
Revaluation gainsRevaluation lossesNet revaluation gains/(losses)Revaluation gainsRevaluation lossesNet revaluation gains/(losses)
Loans and advances146 (121)25 169 (71)98 
Debt instruments289 (891)(602)364 (834)(470)
The detail of Debt instruments depending on the geographical origin of the issuer is as follows:
EUR million
30-06-2026
31-12-2025
Revaluation gains
Revaluation losses
Net revaluation gains/(losses)
Fair value
Revaluation gains
Revaluation losses
Net revaluation gains/(losses)
Fair value
Issued by public Public-sector
      Spain90 — 90 11,447 118 — 118 10,142 
      Rest of Europe 47 (42)5 5,484 61 (36)25 6,469 
      America and rest of the world 105 (645)(540)33,044 109 (528)(419)31,685 
Issued by Private-sector
Spain8 (5)3 279 8 (6)2 376 
Rest of Europe27 (5)22 4,045 28 (15)13 4,672 
America and rest of the world12 (194)(182)4,671 40 (249)(209)4,961 
289 (891)(602)58,970 364 (834)(470)58,305 





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12.   Segment information (Primary segments)
Grupo Santander has aligned the information in this note with the underlying information used internally for management reporting and with that presented in Grupo Santander's other public documents.
Grupo Santander's executive committee has been selected to be its chief operating decision maker. Grupo Santander's operating segments reflect its organizational and managerial structures. Grupo Santander's executive committee reviews internal reporting based on these segments to assess performance and allocate resources.
The segments are split by global business and country in which profits are earned. Santander prepares the information by aggregating the figures for Grupo Santander’s global businesses and countries, relating it to both the accounting data of the business units integrated in each segment and that provided by management information systems. The same general principles as those used in Grupo Santander are applied.
On 10 February 2026, the Group announced a series of changes to its reporting structure, effective from Q1 2026:
•Reporting of the Cards business within Retail & Commercial Banking: the income statement and balance sheet items relating to the Cards business are reclassified to Retail (previously recorded in Payments).
•Other changes within the primary segments:
◦The Digital Consumer Bank (Consumer) business is renamed Openbank.
◦Wealth Management & Insurance is reorganized into two business lines: Private Banking, which comprises the corporate private banking unit and International Private Banking in the US, Switzerland and the UAE; and Insurance & Asset Management Solutions, which brings together the insurance business and liquid and illiquid asset management activities, and include the investment platforms and holdings that complement the traditional Wealth business.
These changes do not have any impact on the reported figures at the Group or primary segment levels.
The Group's primary level of segmentation, comprises six reportable segments: five global businesses plus the Corporate Centre. The global businesses are:
•Retail & Commercial Banking (Retail): area that integrates the retail banking and commercial banking businesses (individuals, SMEs and corporates), except private banking clients and business originated in the consumer finance businesses.
•Openbank, previously known as Digital Consumer Bank: comprises business originated by consumer finance companies, including the digital bank (formerly Openbank), Open Digital Services (ODS) and the retail business in the US.
•Corporate & Investment Banking (CIB): business which includes Global Transaction Banking, Global Banking (Global Debt Financing and Corporate Finance) and Global Markets business lines. Offers products and services on a global scale to corporate and institutional customers, and collaborates with other global businesses to better serve the broad customer base.
•Wealth Management & Insurance (Wealth): comprises two business lines: i) Private Banking, which includes the corporate private banking unit and International Private Banking in the US, Switzerland and the UAE; and ii) Insurance & Asset Management Solutions, which will bring together the insurance business and liquid and illiquid asset management activities and includes the investment platforms and holdings that complement the traditional Wealth business.
•Payment Solutions (Payments): brings together the Group’s digital payment solutions and provides global technological solutions to Group entities and new customers in the open market. It will comprise Getnet, Getnet Platforms and Ebury.
•Corporate Centre: includes the centralized activities relating to equity stakes in financial companies, financial management of the structural exchange rate position, assumed within the sphere of the Group’s asset and liability committee, as well as management of liquidity and of shareholders’ equity via issuances.
As the Group’s holding entity, this area manages all capital and reserves and allocations of capital and liquidity with the other businesses. It also incorporates goodwill impairments but not the costs related to the Group’s central services (charged to the areas), except for corporate and institutional expenses related to the Group’s functioning.
In accordance with the information used by the Group's executive committee for decision making, following is a distribution of the gross margin by business segment of the consolidated income statements for the six-month periods ended 30 June 2026 and 2025.
This financial information ('underlying basis') is computed by adjusting reported results for the effects of certain gains and losses (e.g.: capital gains, write-downs, etc.). These gains and losses are items that management and investors ordinarily identify and consider separately to understand better the underlying trends in the business.
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Following is the reconciliation between the adjusted profit and the statutory profit corresponding to the six-month periods ended 30 June 2026 and 2025:
EUR million
Total Income
Profit before tax
Profit
Segment
30-06-2026
30-06-2025
30-06-2026
30-06-2025
30-06-2026
30-06-2025
Retail & Commercial Banking17,135 16,202 5,861 5,283 4,124 3,653 
Openbank6,535 6,425 1,405 1,456 827 1,042 
Corporate & Investment Banking4,779 4,119 2,379 2,188 1,742 1,472 
Wealth Management & Insurance2,093 1,930 1,356 1,196 1,083 906 
Payments771 641 92 22 78 16 
Corporate Centre(466)(353)(746)(807)(525)(713)
Underlying Profit
30,847
28,965
10,347
9,337
7,328
6,376
Adjustments
(25)
13
(386)
(233)
1,645
457
Statutory Profit30,822 28,978 9,961 9,104 8,973 6,833 
Explanation of the adjustments to the statutory profit at 30 June 2026:
•In the statutory income statement, the capital gain resulting from the completion of the Poland disposal in the first quarter of 2026 was recorded in the 'profit/(loss) after tax from discontinued operations' line item. However, in the underlying income statement, said capital gain is excluded from the underlying profit.
•In the statutory income statement, restructuring costs associated with the TSB acquisition in the second quarter of 2026 were recorded in the 'Provisions or reversal of provisions' line item, aggregated in 'Other results and provisions'. The recorded amount, net of taxes, is EUR 250 million. However, in the underlying income statement, these costs have been excluded from underlying profit.
•In the second quarter of 2026, a provision totalling EUR 39 million, net of tax and non-controlling interests, was recorded for or potential complaints related to motor finance dealer commissions in the UK associated with joint ventures. In the underlying income statement, this provision has been reclassified from a line item that is aggregated within ‘other operating income’, from 'tax on profit' and from 'non-controlling interests' to 'other gains (losses) and provisions', thereby recording the full amount in aggregate in a single line item.
Explanation of the adjustments to the statutory profit at 30 June 2025:
•In accordance with IFRS 5 requirements, in the statutory profit, results subject to the Poland disposal have been reported under the line 'Profit or loss after tax from discontinued operations' (see Note 2). However, in the underlying profit, the results from Poland have been reclassified so that they are reported line by line and disaggregated in each of the corresponding line items.
•A capital gain of EUR 231 million at 30 June 2025, from the sale of Santander's remaining 30.5% stake in CACEIS.
•Charges of EUR 467 million at 30 June 2025 (EUR 231 million net of taxes and minority interests) after updating the macroeconomic parameters in Brazil's credit provisioning models.







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113.   Related parties
The parties related to Grupo Santander are deemed to include, in addition to its subsidiaries, associates and joint ventures, Banco Santander’s key management personnel (the members of its board of directors and the executive vice presidents, together with their close family members) and the entities over which the key management personnel may exercise significant influence or control.
Following is a detail of the transactions performed by Grupo Santander with its related parties in the first six months of 2026 and 2025, distinguishing between significant shareholders, members of Banco Santander’s board of directors, Banco Santander’s executive vice presidents, Grupo Santander entities and other related parties. Related party transactions were made on terms equivalent to those that prevail in arm’s-length transactions or, when this was not the case, the related compensation in kind was recognised:
EUR million
30-06-2026
Expenses and income
Significant
shareholders		Directors and
executives		Group companies
or entities		Other related
parties
Total
Expenses
Finance costs— — 67 1 68 
Leases— — — — — 
Services received— — — — — 
Purchases of stocks— — — — — 
Other expenses— — 57 1 58 
— — 124 2 126 
Income
Finance income— — 209 3 212 
Dividends received— — — — — 
Services rendered— — 16 — 16 
Sale of stocks— — — — — 
Other income— — 781 1 782 
— — 1,006 4 1,010 
EUR million
30-06-2026
Other transactions
Significant
shareholders		Directors and
executives		Group companies
or entities		Other related
parties
Total
Financing agreements: loans and capital contributions (lender)— 2 183 40 225 
Financing agreements: loans and capital contributions (borrower)— (2)283 153 434 
Guarantees provided— — — (8)(8)
Guarantees received— — — — — 
Commitments acquired— — 40 14 54 
Dividends and other distributed profit— 3 — 23 26 
Other transactions— — (26)(6)(32)
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EUR million
30-06-2026
Balance closing period
Significant
shareholders		Directors and
executives		Group companies
or entities		Other related
parties
Total
Debt balances:
Customers and commercial debtors— — — — — 
Loans and credits granted— 20 10,495 314 10,829 
Other collection rights— — 333 15 348 
— 20 10,828 329 11,177 
Credit balances:
Suppliers and creditors granted— — — — — 
Loans and credits received— 13 3,109 217 3,339 
Other payment obligations— — 179 — 179 
— 13 3,288 217 3,518 

EUR million
30-06-2025
Expenses and income
Significant
shareholders		Directors and
executives		Group companies
or entities		Other related
parties
Total
Expenses
Finance costs— — 60 2 62 
Leases— — — — — 
Services received— — — — — 
Purchases of stocks— — — — — 
Other expenses— — 51 1 52 
— — 111 3 114 
Income
Finance income— — 221 4 225 
Dividends received— — — — — 
Services rendered— — 15 — 15 
Sale of stocks— — — — — 
Other income— — 666 1 667 
— — 902 5 907 
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EUR million
30-06-2025
Other transactions
Significant
shareholders		Directors and
executives		Group companies
or entities		Other related
parties
Total
Financing agreements: loans and capital contributions (lender)— 3 281 111 395 
Financing agreements: loans and capital contributions (borrower)— (5)(424)162 (267)
Guarantees provided— 2 7 4 13 
Guarantees received— — — — — 
Commitments acquired— — 27 (7)20 
Dividends and other distributed profit— 3 — 33 36 
Other transactions— — (204)(3)(207)

EUR million
31-12-2025
Balance closing period
Significant
shareholders		Directors and
executives		Group companies
or entities		Other related
parties
Total
Debt balances:
Customers and commercial debtors— — — — — 
Loans and credits granted— 18 10,121 274 10,413 
Other collection rights— — 370 21 391 
— 18 10,491 295 10,804 
Credit balances:
Suppliers and creditors granted— — — — — 
Loans and credits received— 15 2,786 376 3,177 
Other payment obligations— — 191 — 191 
— 15 2,977 376 3,368 

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14.   Off-balance-sheet exposures
The off-balance-sheet exposures relate to balances representing loans commitments, financial guarantees and other commitments granted (recoverables and non recoverables).
Financial guarantees granted include financial guarantees contracts such as financial bank guarantees, credit derivatives, and risks arising from derivatives granted to third parties; non-financial guarantees include other guarantees and irrevocable documentary credits.
Loan and other commitments granted include all off-balance-sheet exposures, which are not classified as guarantees provided, including loans commitment granted.
EUR million
30-06-2026
31-12-2025
Loan commitments granted325,379 321,234 
  Of which impaired432 345 
Financial guarantees granted17,498 17,449 
Of which impaired316 332 
Bank sureties17,455 17,437 
Credit derivatives sold43 12 
Other commitments granted151,556 148,118 
Of which impaired574 668 
Other granted guarantees64,229 62,161 
Other87,327 85,957 
The breakdown of the off-balance sheet exposure and impairment on 30 June 2026 and 31 December 2025 by impairment stages is EUR 471,257 million and EUR 464,215 million of exposure and EUR 357 million and EUR 338 million of impairment in stage 1, EUR 21,854 million and EUR 21,241 million of exposure and EUR 218 million and EUR 206 million of impairment in stage 2, and EUR 1,322 million and EUR 1,345 million of exposure and EUR 173 million and EUR 169 million of impairment in stage 3, respectively.
15.   Average headcount and number of branches
The average number of employees at Banco Santander and Grupo Santander, by gender, in the six-month periods ended 30 June 2026 and 2025 is as follows:
Average headcount
Bank
Group (*)
30-06-2026
30-06-2025
30-06-2026
30-06-2025
Men11,49311,91390,63894,530
Women11,12111,45195,173100,872
22,614 23,364 185,811 195,402 
(*) As of 30 June 2025, this excludes the Group’s business sold in Poland. Including Poland, the average headcount amounted to 206,045.
The number of branches, depending on their location, as of 30 June 2026 and 31 December 2025 is as follow:
Number of branches
Group
30-06-2026
31-12-2025
Spain (*)
1,4991,674
Group (**)
4,9975,091
6,496 6,765 
(*) Includes branches in Spain of the Openbank business.
(**) Excludes 359 branches from the business sold in Poland at 31 December 2025.
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16.   Other disclosures
a) Valuation techniques for financial assets and liabilities
The following table shows a summary of the fair values, at 30 June 2026 and 31 December 2025, of the financial assets and liabilities indicated below, classified on the basis of the various measurement methods used by Grupo Santander to determine their fair value:
EUR million
30-06-2026
31-12-2025
Level 1
Level 2 
Level 3
Total
Level 1
Level 2
Level 3
Total
Financial assets held for trading120,390 158,735 7,816 286,941 106,529 139,293 6,496 252,318 
Non-trading financial assets mandatorily at fair value through profit or loss2,647 2,413 2,998 8,058 2,407 2,465 2,889 7,761 
Financial assets designated at fair value through profit and loss2,857 4,976 51 7,884 2,860 5,152 34 8,046 
Financial assets at fair value through other comprehensive income53,995 11,384 9,992 75,371 52,589 12,962 9,061 74,612 
Hedging derivatives (assets)— 5,006 — 5,006 — 3,924 7 3,931 
Financial liabilities held for trading34,617 157,680 1,120 193,417 37,192 133,490 864 171,546 
Financial liabilities designated at fair value through profit or loss— 43,279 128 43,407 — 42,148 — 42,148 
Hedging derivatives (liabilities)— 4,490 4 4,494 — 4,229 19 4,248 
Liabilities under insurance contracts— 19,103 244 19,347 — 18,510 227 18,737 
The Group determines the fair value of financial instruments as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When quoted prices in active markets exist for identical instruments, those prices are used without significant adjustments. In the absence of quoted prices in active markets, fair value is estimated using valuation techniques generally accepted in the market, maximising the use of observable inputs and minimising the use of unobservable inputs.

The valuation techniques applied by the Group include, among others, discounted cash flow methods, present‑value models, option‑pricing models, techniques based on prices or spreads of comparable instruments, credit models, and simulation or stochastic‑volatility models for more complex instruments. Key inputs include interest‑rate and discount curves, inflation curves, exchange rates, spot prices, credit curves, liquidity spreads, volatilities, dividends, correlations, recovery rates, prepayment rates and other parameters relevant to the instrument being valued.

Classifications are reviewed periodically considering, among other factors, market depth and liquidity, the frequency and dispersion of quotes, the availability of observable transactions, the extent of price corroboration from independent sources and the relevance of unobservable inputs to the measurement. Transfers between levels are recognised in accordance with the Group’s internal policies and reflect changes in input observability or their relative significance.
The Group has a valuation governance and control framework with segregated responsibilities. Business units are responsible for originating and managing financial products, while the independent Risk and/or Valuation functions periodically verify models, market inputs, valuation results, valuation adjustments and the fair value hierarchy classification. This framework includes new‑product approval processes, independent model validation, independent price verification, observability analysis, data‑quality controls and escalation of material issues or exceptions.









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Valuation techniques
Valuations obtained from market prices or internal models are adjusted, where appropriate, to reflect the exit price that market participants would consider at the measurement date. These adjustments are part of the fair value measurement and are intended to incorporate risks, costs or uncertainties not fully captured by the price or the valuation technique used.

The main valuation adjustments considered by the Group, where applicable and significant, are as follows:
•Bid-offer and liquidity adjustments: reflect the estimated cost of closing, transferring or hedging positions, especially when the reference valuation is obtained from market mid‑prices or when market depth is limited.

•Input‑uncertainty adjustments: cover dispersion or limited observability of prices, curves, spreads, volatilities, correlations, recovery rates, prepayment rates or other parameters used in valuation.

•Model‑risk adjustments: capture the uncertainty inherent in the valuation methodology, calibration assumptions or the inability to fully replicate an instrument’s risks in the market, especially for complex products or with non‑standard optionalities.

•Counterparty credit risk adjustments (CVA): reflect the risk that the counterparty defaults before the maturity of the transactions, considering expected positive exposure, probability of default, loss severity, netting and collateral arrangements, and the applicable discount curves.

•Own credit risk adjustments on derivatives (DVA): reflect the effect of the Group’s own credit risk in the valuation of derivative liabilities, considering expected negative exposure and relevant own‑credit parameters.

•Funding adjustments (FVA/FFVA): incorporate, where applicable, the impact of funding costs or benefits associated with uncollateralised or partially collateralised components of the OTC derivatives portfolio, in line with the terms that a market participant would consider in valuation.

•Collateral and collateral‑remuneration adjustments: reflect the impact of contractual collateralisation terms, collateral remuneration and the quality of guarantees where not fully captured in the base valuation.

•Own‑credit risk adjustments on liabilities designated at fair value: incorporate the effect of the Group’s own credit quality on certain financial liabilities designated at fair value, in accordance with the applicable accounting framework.

These adjustments are calculated on bases consistent with the Group’s fair value framework and rely, to the extent possible, on observable market information. Where sufficient observable information is not available, duly documented internal estimates are used and are subject to independent validation, verification and ongoing monitoring. The materiality of adjustments and their potential impact on the classification of instruments within the fair value hierarchy are assessed periodically.
When, on initial recognition of a financial instrument measured at fair value, differences exist between the transaction price and the valuation obtained from a model using significant unobservable inputs, such differences are recognised in accordance with the applicable accounting framework, normally deferring recognition in profit or loss until the relevant inputs become observable, cease to be significant, the position is realised, or the period during which unobservability is considered to persist has elapsed.
As of 30 June 2026, the main adjustments recorded are as follows:
•The CVA (Credit Valuation Adjustment) accounted for was EUR 240 million (an increase of 7.1% compared to 31 December 2025) and adjustments of DVA (Debt Valuation Adjustment) was EUR 291 million (an increase of 2.1% compared to 31 December 2025). The increase in CVA was driven by movements in credit markets and growth in certain derivatives portfolios, while the increase in DVA was mainly attributable to a modest widening of credit spreads.

•Valuation adjustments accounted to EUR 324 million, representing an increase of 4.95% compared to 31 December 2025. These adjustments mainly reflect bid-offer spread uncertainty, the dispersion of valuation inputs among different pricing contributors and the uncertainty associated with certain valuation models. The increase reflects greater uncertainty regarding the inputs used to arrive at a fair valuation of the Group's positions.

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Set forth below are the financial instruments at fair value whose measurement was based on internal models (levels 2 and 3) at 30 June 2026 and 31 December 2025:
EUR millionEUR million
Fair values calculated using internal models at 30-06-2026 (*)Fair values calculated using internal models at 31-12-2025 (*)
Level 2Level 3Level 2Level 3Valuation techniquesMain inputs
ASSETS182,514 20,857 163,796 18,487 
Financial assets held for trading158,735 7,816 139,293 6,496 
Loans and receivables (**)84,231 6,529 67,992 5,185 Present value methodInterest rates, Exchange rates, Credit spreads
Debt instruments
       		17,133 311 14,456 340 Present value method. Prices observed in inactive markets or for similar assetsInterest rates, Exchange rates, Credit spreads
Equity instruments16 — 14 — Net present value. Prices observed in inactive markets or for similar assetsMarket prices, Interest rates, Exchange rates, Dividends
Derivatives57,355 976 56,831 971 
Swaps42,279 546 39,716 551 Cash flow discountingInterest rates, Credit spreads, Basis, Liquidity
Exchange rate options1,160 31 1,332 39 Black-Scholes modelExchange rate, Volatilities, Correlations, Liquidity
Interest rate options1,824 1 1,490 39 Black-Scholes, SABR and LGM modelsInterest rate, Volatilities, Correlations, Liquidity
Index and securities options552 214 439 120 Black-Scholes modelEquity prices, Volatilities, Dividends
Interest rate futures774 3 177 — Present value methodInterest rate
Other10,766 181 13,677 222 Present value method, advanced stochastic volatility models. Multifactor modelsInterest rate, Exchange rates, Credit spreads, Volatilities, Correlations, Liquidity, Prepayment rates, Recovery rates
Hedging derivatives5,006 — 3,924 7 
Swaps4,736 — 3,690 7 Cash flow discountingInterest rates, Credit spreads, Basis, Liquidity
Interest rate options102 — 91 — Black-Scholes, SABR and LGM modelsInterest rate, Volatilities, Correlations, Liquidity
Other168 — 143 — Present value method, advanced stochastic volatility models. Multifactor modelsInterest rate, Exchange rates, Credit spreads, Volatilities, Correlations, Liquidity, Prepayment rates, Recovery rates
Non-trading financial assets mandatorily at fair value through profit or loss2,413 2,998 2,465 2,889 
Loans and receivables 1,368 165 1,512 171 Present value methodInterest rates, Exchange rates, Credit spreads
Debt instruments17 230 54 175 Present value method. Prices observed in inactive markets or for similar assetsInterest rates, Exchange rates, Credit spreads
Equity instruments1,028 2,603 899 2,543 Net present value. Prices observed in inactive markets or for similar assetsMarket prices, Interest rates, Exchange rates, Dividends
Financial assets designated at fair value through profit or loss4,976 51 5,152 34 
Loans and receivables4,963 27 5,138 14 Present value methodInterest rates, Exchange rates, Credit spreads
Debt instruments13 24 14 20 Present value method. Prices observed in inactive markets or for similar assetsInterest rates, Exchange rates, Credit spreads
Financial assets at fair value through other comprehensive income11,384 9,992 12,962 9,061 
Loans and receivables (***)4,085 8,714 6,124 7,902 Present value methodInterest rates, Exchange rates, Credit spreads
Debt instruments7,296 1,005 6,819 887 Present value method. Prices observed in inactive markets or for similar assetsInterest rates, Exchange rates, Credit spreads
Equity instruments3 273 19 272 Net present value. Prices observed in inactive markets or for similar assetsMarket prices, Interest rates, Exchange rates, Dividends
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LIABILITIES224,499 1,496 198,377 1,110 
Financial liabilities held for trading157,680 1,120 133,490 864 
Deposits98,944 198 75,563 — Present value methodInterest rates, Exchange rates, Credit spreads
Derivatives49,841 922 50,248 864 
Swaps35,089 431 33,597 418 Cash flow discountingInterest rates, Credit spreads, Basis, Liquidity
Exchange rate options828 17 903 34 Black-Scholes modelExchange rate, Volatilities, Correlations, Liquidity
Interest rate options1,853 84 1,951 95 Black-Scholes, SABR and LGM modelsInterest rate, Volatilities, Correlations, Liquidity
Index and securities options2,352 188 1,094 151 Black-Scholes modelEquity prices, Volatilities, Dividends
Interest rate and equity futures520 3 121 — Present value methodInterest rates, Equity prices, Dividends
Other9,199 199 12,582 166 Present value method, advanced stochastic volatility models. Multifactor modelsInterest rate, Exchange rates, Credit spreads, Volatilities, Correlations, Liquidity, Prepayment rates, Recovery rates
Short positions8,895 — 7,679 — 
Hedging derivatives4,490 4 4,229 19 
Swaps3,861 4 4,191 19 Cash flow discountingInterest rates, Credit spreads, Basis, Liquidity
Interest rate options— — — — Black-Scholes, SABR and LGM modelsInterest rate, Volatilities, Correlations, Liquidity
Other629 — 38 — Present value method, advanced stochastic volatility models. Multifactor modelsInterest rate, Exchange rates, Credit spreads, Volatilities, Correlations, Liquidity, Prepayment rates, Recovery rates
Financial liabilities designated at fair value through profit or loss (****)43,279 128 42,148 — Present value methodInterest rates, Credit spreads, Prepayment rates
Liabilities under insurance contracts19,103 244 18,510 227 Actuarial models and present value methodInterest rates, Mortality rates
(*) The internal models of level 2 implement figures based on the parameters observed in the market, while level 3 internal models use significant inputs that are not observable in market data.
(**)     Includes mainly temporary acquisitions/disposals of assets with corporate clients and, to a lesser extent, with central banks.
(***) Includes mainly syndicated loans under the HTC&S business model.
(****) Includes mainly short-term deposits that are managed based on their fair value.


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Level 3 financial instruments
Instruments classified as Level 3 are those whose valuation incorporates significant unobservable inputs. Inclusion of an instrument in Level 3 does not necessarily imply that no observable inputs are used in its valuation; it reflects that at least one unobservable input has a significant effect on the fair value measurement of the instrument as a whole.
The Group’s main Level 3 instruments, together with the most relevant unobservable inputs that justify such classification, are as follows:
•Syndicated loans classified at fair value through other comprehensive income, particularly those with a held‑to‑collect and sell (HTC&S) business model, for which credit spreads or certain liquidity adjustments are not directly observable in the market. In some cases the borrower’s prepayment option or the absence of representative transactional prices may be relevant.
•Long‑term repo and reverse‑repo transactions classified as financial assets or liabilities held for trading, whose valuation incorporates financing, liquidity, collateral, remaining tenor or counterparty‑risk parameters that cannot always be corroborated with observable prices for equivalent transactions.
•Unlisted or illiquid equity instruments, included in portfolios at fair value through profit or loss or through other comprehensive income, valued using prices of comparable transactions, net present‑value methods, multiples, fund valuations or internal price estimates, with adjustments for liquidity, transfer restrictions or parameter uncertainty.
•Interest‑rate derivatives with cancellable optionality or long‑dated structures, where parameters such as volatility, curve correlations, mean reversion of interest rates, basis, liquidity or curve extensions beyond observable tenors may be significant.
•Swaps linked to securitisations or other derivatives in which cash‑flow evolution depends on the performance of an underlying portfolio. In these cases, prepayment rates, early amortisation, loss severity or expected portfolio behaviour may constitute significant unobservable inputs.
•Inflation derivatives, particularly when referenced to indices or tenors with limited market liquidity. Relevant inputs include forward inflation curves, inflation volatilities, seasonality and correlations with other market factors.
•Equity derivatives and structured products on indices, shares or baskets, especially long‑dated or on illiquid underlyings. Key unobservable inputs may include long‑term volatilities, expected dividends, correlations between underlyings, volatility skews, liquidity discounts and strike or barrier parameters.
•Foreign‑exchange or interest‑rate derivatives in certain geographies or currencies, mainly when maturities exceed the observable zone of curves, volatilities or correlations, or when local markets do not provide sufficient information for independent corroboration.
•Debt instruments referenced to illiquid rates or spreads, or with contractual structures for which observable prices of comparable instruments do not exist, valued using discounted cash‑flow methods, market proxies, estimated credit curves or liquidity adjustments.
Sensitivity for Level 3 instruments is determined by considering reasonably possible changes in the significant unobservable inputs, in line with the nature of the instrument, data availability and quality, historical experience, market conditions and the Group’s prudent valuation criteria. Potential effects are presented in the corresponding tables, distinguishing between favourable and unfavourable scenarios where such information is significant.
Valuations obtained using internal models could differ if other reasonably possible methods or assumptions were applied regarding interest rates, credit spreads, liquidity, exchange rates, volatilities, correlations, dividends, prepayment rates, house‑price indices or other unobservable inputs. Nevertheless, based on the controls and procedures described, the Group considers that the fair values recognised in the consolidated balance sheet, as well as the results arising from these instruments, are reasonable and reflect the information available at the reporting date.
During 2025 there was an increase in instruments classified as Level 3, especially in the last quarter of the year. This increase was driven by higher volumes of some of these instruments in the portfolio due to new business, with no material reclassifications detected arising from changes in market observability of valuation inputs for the remaining positions. The main increases include long‑term repo/reverse‑repo activity, illiquid equities in non‑trading portfolios and syndicated loans with an HTC&S business model for which no observable market price exists under the criteria applied.
The net amount recorded in the results of the first six months of 2026 arising from models whose significant inputs are unobservable market data (level 3) amounted to a loss of EUR 22 million (loss of EUR 148 million in the first six months of 2025).




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The table below shows the effect, at 30 June 2026 and 31 December 2025, on the fair value of the main financial instruments classified as Level 3 of a reasonable change in the assumptions used in the valuation. This effect was determined by applying the probable valuation ranges of the main unobservable inputs detailed in the following table:
30-06-2026
Portfolio/Instrument
Valuation technique
Main unobservable inputs
Range
Weighted average
Impacts (EUR million)
(Level 3)
Unfavourable scenario
Favourable scenario
Financial assets held for trading
Loans and advances to customers
Repos/Reverse reposMarket proxyPrice / Credit spread
n.a.
n.a.(11.70)11.70 
Repos/Reverse reposPresent value methodInterest rate curve
(4.90)bps - 68.90bps
0.00bps(7.97)0.57 
Debt securities
Corporate debtDiscounted Cash FlowsCredit spread
0% - 10.00%
5.10%(2.06)2.11 
Government debtDiscounted Cash FlowsDiscount curve
0% - 8%
4.00%(9.97)9.90 
OthersDiscounted Cash FlowsCredit spread
10% - 90%
40.70%(0.88)0.55 
Derivatives
Cap&FloorBlack Scholes modelVolatility
(6.50)bps - 6.50bps
2.60bps(0.03)0.06 
EQ OptionsEQ option pricing modelVolatility
0% - 70%
35.50%(0.70)0.72 
EQ OptionsLocal volatilityVolatility
10% - 90%
50.00%(35.74)35.74 
Fx OptionsFx option pricing modelVolatility
0% - 40%
19.80%(0.39)0.38 
FX ForwardForward estimationSwap Rate
 0% - 15%
7.60%(0.12)0.12 
Inflation DerivativesAsset Swap modelInflation Swap Rate
2% - 8%
4.90%(0.18)0.17 
IR OptionsIR option pricing modelVolatility
0% - 30%
14.80%(0.18)0.18 
IR OptionsINF option pricing modelVolatility
0% - 30%
14.90%(0.60)0.59 
IRSOthersOthers
5% - n.a.
n.a.(4.88)3.08 
Other IR derivativesDiscounted Cash FlowsPrice
n.a. - n.a.
n.a.(0.97)0.97 
IRSDiscounted Cash FlowsCredit spread
9.10bps - 69.70bps
32.40bps(2.29)1.44 
IRSDiscounted Cash FlowsInflation Swap Rate
1.0% - 99.0%
35.30%(2.19)1.18 
OthersForward estimationPrice
60bps - 300bps
179.80bps(3.37)3.35 
OthersDiscounted Cash FlowsCommodity curve
10.0% - 90.0%
10.00%0.00 0.00 
Property derivativesOption pricing modelGrowth rate
(5.0)% - 5.0%
0.00%(2.32)2.32 
Securitisation SwapDiscounted Cash FlowsConstant prepayment rates
10.0% - 90.0%
54.00%(11.78)14.40 
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30-06-2026
Portfolio/Instrument
Valuation technique
Main unobservable inputs
Range
Weighted average
Impacts (EUR million)
(Level 3)
Unfavourable scenario
Favourable scenario
Financial assets designated at fair value through profit or loss
Loans and advances to customers
Mortgage portfolioBlack Scholes modelGrowth rate
(5)% - 5%
0.00%(0.12)0.12 
Debt securities
Other debt securitiesOthersInflation Swap Rate
0% - 8%
4%(3.87)3.79 
Non-trading financial assets mandatorily at fair value through profit or loss
Debt securities
Property securitiesProbability weightingGrowth rate
(5)% - 5%
0%— — 
Equity instruments
EquitiesPrice BasedPrice
90% - 110%
100%(260.30)260.30 
Financial assets at fair value through other comprehensive income
Loans and advances to customers
LoansDiscounted Cash FlowsCredit spread
n.a. - n.a.
n.a.(25.34)9.26 
LoansDiscounted Cash FlowsInterest rate curve
4.6% - 7.1%
5.80%0.00 0.00 
LoansDiscounted Cash FlowsMargin of a reference portfolio
2.8% - 6.5%
4.70%(0.59)0.59 
LoansPresent value methodCredit spread
185.7bps - 119.3bps
185.70bps(0.02)0.00 
LoansMarket priceMarket price
(0.5)% - 0.5%
0.00%(8.94)8.94 
Debt securities
Mortgage LettersDiscounted Cash FlowsMortgage Letters
3.2% - 8.3%
5.70%0.00 0.00 
Equity instruments
EquitiesPrice BasedPrice
90% - 110%
100.00%(27.26)27.26 
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30-06-2026
Portfolio/Instrument
Valuation technique
Main unobservable inputs
Range
Weighted average
Impacts (EUR million)
(Level 3)
Unfavourable scenario
Favourable scenario
Financial liabilities held for trading
Derivatives
Cap&FloorVolatility option modelVolatility
10% - 90%
46.30%(0.17)0.14 
FX OptionsVolatility option modelVolatility
10% - 90%
41.90%(0.71)0.47 
IRSDiscounted Cash FlowsInflation Swap Rate
10% - 90%
46%(0.02)0.02 
IRSDiscounted Cash FlowsCredit Spread
20bps - 37bps
26.20bps(1.11)0.63 























January - June 2026
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143

31-12-2025
Portfolio/Instrument
Valuation technique
Main unobservable inputs
Range
Weighted average
Impacts (EUR million)
(Level 3)
Unfavourable scenario
Favourable scenario
Financial assets held for trading
Loans and advances to customers
Repos/Reverse reposMarket proxyPrice / Credit spreadn.a.n.a.(10.50)10.50 
Debt securities
Corporate debtDiscounted Cash FlowsCredit spread
0% - 10%
5.10%(2.24)2.29 
Government debtDiscounted Cash FlowsDiscount curve
0% - 8%
4.00%(9.21)9.24 
OthersDiscounted Cash FlowsCredit spread
10% - 90%
35.50%(1.32)0.62 
Derivatives
Cap&FloorBlack Scholes modelVolatility
(6.50)bps - 6.50bps
1.00bps(0.38)0.52 
CCSDiscounted Cash FlowsCredit spread
146.3% - 148.3%
147.30%(0.01)0.01 
EQ OptionsEQ option pricing modelVolatility
0% - 70%
40.50%(0.17)0.24 
EQ OptionsLocal volatilityVolatility
10% - 90%
50.00%(18.86)18.86 
Fx OptionsFx option pricing modelVolatility
0% - 40%
19.80%(0.50)0.49 
FX ForwardForward estimationSwap Rate
0% - 15%
8.10%(0.01)0.02 
Inflation DerivativesAsset Swap modelInflation Swap Rate
2% - 8%
4.90%(0.18)0.17 
IR OptionsIR option pricing modelVolatility
0% - 30%
14.80%(0.19)0.19 
IR OptionsINF option pricing modelVolatility
0% - 30%
14.90%(0.63)0.63 
IRSOthersOthers
5% - n.a.
n.a.(11.24)8.23 
IRSDiscounted Cash FlowsCredit spread
19.6% - 127.5%
50.50%(2.10)0.84 
IRSDiscounted Cash FlowsInflation Swap Rate
1.0% - 99.0%
99.00%— 1.41 
OthersForward estimationPrice
60bps - 300bps
179.8bps(3.48)3.47 
Property derivativesOption pricing modelGrowth rate
(5)% - 5%
0.00%(2.64)2.64 
Securitisation SwapDiscounted Cash FlowsConstant prepayment rates
10% - 90%
50.00%— — 
Financial assets designated at fair value through profit or loss
Loans and advances to customers
LoansDiscounted Cash FlowsCredit spreads
0.1% - 3%
1.60%(0.12)0.12 
Mortgage portfolioBlack Scholes modelGrowth rate
(5)% - 5%
0.00%(0.23)0.23 
144
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31-12-2025
Portfolio/Instrument
Valuation technique
Main unobservable inputs
Range
Weighted average
Impacts (EUR million)
(Level 3)
Unfavourable scenario
Favourable scenario
Debt securities
Other debt securitiesOthersInflation Swap Rate
0% - 8%
4.10%— — 
Non-trading financial assets mandatorily at fair value through profit or loss
Debt securities
Property securitiesProbability weightingGrowth rate
(5)% - 5%
0.00%(0.11)0.11 
Equity instruments
EquitiesPrice BasedPrice
90% - 110%
100.00%(254.29)254.29 
Financial assets at fair value through other comprehensive income
Loans and advances to customers
LoansDiscounted Cash FlowsCredit spreadn.a.n.a.(2.33)2.33 
LoansDiscounted Cash FlowsInterest rate curve
6.1% - 7.2%
6.6%— 0.00 
LoansDiscounted Cash FlowsMargin of a reference portfolio
3.3% - 6.5%
5%(0.25)0.25 
LoansPresent value methodCredit spread
121.9bps - 174.7 bps
121.9bps(1.60)— 
LoansMarket priceMarket price
(0.3)% - 0.1%
(0.30)%(2.70)0.54 
Debt securities
Mortgage LettersDiscounted Cash FlowsMortgage Letters
3.4% - 5.5%
4.50%— — 
Equity instruments
EquitiesPrice BasedPrice
90% - 110%
100.00%(27.16)27.16 
Financial liabilities held for trading
Derivatives
Cap&FloorVolatility option modelVolatility
10% - 90%
43.80%(0.09)0.07 
FX OptionsVolatility option modelVolatility
10% - 90%
42.30%(0.33)0.22 
IRSDiscounted Cash FlowsInflation Swap Rate
1% - 99%
50.40%(1.38)1.40 
IRSDiscounted Cash FlowsCredit spread
8.4bps - 19.2bps
10.70bps(2.42)0.66 
1. For each instrument, the valuation technique is shown, the unobservable inputs described in the "Main unobservable inputs" column under probable scenarios, variation range, average value and impact resulting from valuing the position in the established
maximum and minimum range.
2. The breakdown of impacts is shown by type of instrument and unobservable inputs.
3. The estimation of the range of variation of the unobservable inputs has been carried out taking into account plausible movements of said parameters depending on the type of instrument.
4. Zero impacts from fully hedged or back-to-back transactions have not been included in this exercise.
January - June 2026
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145

Lastly, the changes in the financial instruments classified as level 3 in the first six months of 2026 and 2025 were as follows:
01-01-2026
Changes
30-06-2026
EUR millionFair value calculated using internal models (Level 3)Purchases/IssuancesSales/AmortisationChanges in fair value recognized in profit or lossChanges in fair value recognised in equityLevel reclassificationsOtherFair value calculated using internal models (Level 3)
Financial assets held for trading6,496 4,962 (3,714)190 — (148)30 7,816 
Central Banks441 609 — 10 — — — 1,060 
Credit institutions152 301 (138)(4)— — — 311 
Customers4,592 3,900 (3,318)25 — (41)— 5,158 
Debt instruments340 130 (174)(1)— 12 4 311 
Trading derivatives971 22 (84)160 — (119)26 976 
Swaps551 22 (43)86 — (72)2 546 
Exchange rate options39 — — 3 — (14)3 31 
Interest rate options39 — (38)— — — — 1 
Index and securities options120 — (2)65 — 29 2 214 
Securities and interest rate futures— — — 3 — — — 3 
Other222 — (1)3 — (62)19 181 
Hedging derivatives (Assets)7 — — (3)— (9)5 — 
Swaps7 — — (3)— (9)5 — 
Financial assets designated at fair value through profit or loss34 15 (10)10 — — 2 51 
Loans and advances to customers14 3 — 10 — — — 27 
Debt instruments20 12 (10)— — — 2 24 
Non-trading financial assets mandatorily at fair value through profit or loss2,889 151 (165)15 — 58 50 2,998 
Loans and advances to customers171 2 — (47)— 27 12 165 
Debt instruments175 43 (6)(5)— 1 22 230 
Equity instruments2,543 106 (159)67 — 30 16 2,603 
Financial assets at fair value through other comprehensive income9,061 6,259 (5,358)— (96)64 62 9,992 
Loans and advances to customers7,902 6,108 (5,193)— (114)4 7 8,714 
Debt instruments887 145 (161)— 17 60 57 1,005 
Equity instruments272 6 (4)— 1 — (2)273 
TOTAL ASSETS18,48711,387(9,247)212(96)(35)14920,857
Financial liabilities held for trading864 234 (29)239 — (213)25 1,120 
Credit institutions— 198 — — — — — 198 
Customers— — — — — — — — 
Trading derivatives864 36 (29)239 — (213)25 922 
Swaps418 36 (19)82 — (96)10 431 
Exchange rate options34 — — (9)— (10)2 17 
Interest rate options95 — (3)(1)— (7)— 84 
Index and securities options151 — (2)79 — (40)— 188 
Securities and interest rate futures— — — 3 — — — 3 
Others166 — (5)85 — (60)13 199 
Hedging derivatives (Liabilities)19 — — — — (15)— 4 
Swaps19 — — — — (15)— 4 
Interest rate options— — — — — — — — 
Others— — — — — — — — 
Financial liabilities designated at fair value through profit or loss— 130 — (1)— (1)— 128 
Liabilities under insurance contracts227 — — (4)— — 21 244 
TOTAL LIABILITIES1,110364(29)234—(229)461,496

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01-01-2025
Changes
30-06-2025
EUR millionFair value calculated using internal models (Level 3)Purchases/IssuancesSales/AmortisationChanges in fair value recognized in profit or lossChanges in fair value recognised in equityLevel reclassificationsOtherFair value calculated using internal models (Level 3)
Financial assets held for trading3,930 4,092 (2,697)64 — 129 (41)5,477 
Central Bank— 437 — 31 — — — 468 
Credit institutions769 44 (745)1 — — — 69 
Customers1,801 3,484 (1,572)33 — 99 (2)3,843 
Debt instruments413 47 (112)(16)— (77)(43)212 
Equity instruments— — — — — — — — 
Trading derivatives947 80 (268)15 — 107 4 885 
Swaps556 64 (94)(29)— 19 133 649 
Exchange rate options2 6 (1)(29)— 7 30 15 
Interest rate options30 — (5)4 — 21 (8)42 
Index and securities options241 4 (115)41 — (8)(107)56 
Interest rate futures— — (20)2 — — 20 2 
Other118 6 (33)26 — 68 (64)121 
Hedging derivatives (Assets)20 3 (5)7 — — (11)14 
Swaps20 3 (5)7 — — (11)14 
Financial assets designated at fair value through profit or loss106 — — (11)— — (50)45 
Loans and advances to customers20 — — (3)— — — 17 
Debt instruments86 — — (8)— — (50)28 
Non-trading financial assets mandatorily at fair value through profit or loss2,588 83 (436)112 — 2 10 2,359 
Loans and advances to customers505 — (395)— — — (28)82 
Debt instruments242 1 (4)16 — 2 (25)232 
Equity instruments1,841 82 (37)96 — — 63 2,045 
Financial assets at fair value through other comprehensive income8,675 6,405 (4,918)— (98)85 (1,063)9,086 
Loans and advances to customers7,253 5,982 (4,703)— (72)85 (1,016)7,529 
Debt instruments1,047 423 (213)— (25)— 39 1,271 
Equity instruments375 — (2)— (1)— (86)286 
TOTAL ASSETS15,31910,583(8,056)172(98)216(1,155)16,981
Financial liabilities held for trading934 285 (300)315 — (183)(97)954 
Credit institutions— 26 — — — — — 26 
Customers— 52 — — — — — 52 
Trading derivatives934 207 (300)315 — (183)(97)876 
Swaps479 32 (27)37 — 9 (31)499 
Interest rate options79 2 (1)2 — (18)47 111 
Index and securities options294 135 (122)(36)— (6)(110)155 
Exchange rate options— 5 (2)(26)— 14 24 15 
Securities and interest rate futures— — (19)29 — — 19 29 
Others82 33 (129)309 — (182)(46)67 
Hedging derivatives (Liabilities)12 — — 20 — (2)— 30 
Swaps12 — — 20 — (2)(1)29 
Interest rate options1 1 
Financial liabilities designated at fair value through profit or loss 160 — (7)— — (153)— — 
Liabilities under insurance contracts246 — — (15)— — 1 232 
TOTAL LIABILITIES1,352285(307)320—(338)(96)1,216
January - June 2026
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b) Refinancing and restructured transactions
The following terms are used with the meanings specified below:
•Refinancing transaction: transaction that is granted or used, for reasons relating to current or foreseeable financial difficulties of the borrower, to repay one or more of the transactions granted to it, or through which the payments on such transactions are brought fully or partially up to date, in order to enable the borrowers of the cancelled or refinanced transactions to repay their debt (principal and interest) because they are unable, or might foreseeably become unable, to comply with the conditions thereof in due time and form.
•Restructured transaction: transaction with respect to which, for economic or legal reasons relating to current or foreseeable financial difficulties of the borrower, the financial terms and conditions are modified in order to facilitate the payment of the debt (principal and interest) because the borrower is unable, or might foreseeably become unable, to comply with the aforementioned terms and conditions in due time and form, even if such modification is envisaged in the agreement.
For maximum guarantees amount, we will consider as follows:
•Collateral: the appraisal amount or valuation amount of the collateral received; for each transaction it cannot be higher than the covered amount of exposure.


























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30-06-2026
TotalOf which: impaired
Without collateralWith collateral
Without collateralWith collateral
Maximum amount of the actual collateral that can be consideredMaximum amount of the actual collateral that can be considered
Amounts in million euros, except number of transactions in unitsNumber of transactionsGross amountNumber of operationsGross amountMortgage collateralOther collateralImpairment of accumulated value or accumulated losses in fair value due to credit riskNumber of transactionsGross amountNumber of operationsGross amountMortgage collateralOther collateralImpairment of accumulated value or accumulated losses in fair value due to credit risk
Credit entities——————————————
Public sector115532—35—532—3
Other financial institutions and: individual shareholder1,212100464121711451716233207747648
Non financial institutions and individual shareholder573,2865,932157,0225,7843,4348932,754274,1843,123141,5652,3061,1103502,467
Of which: Financing for constructions and property development1943559816733169136219517495150
Other warehouses2,762,4004,919658,04010,4893,8314,2974,0471,415,2012,625339,2516,0581,8592,6243,344
Total3,336,90910,956815,53116,3977,3385,2046,8551,690,1065,771481,1418,4443,0182,9805,862
Financing classified as non-current assets and disposable groups of items that have been classified as held for sale——————————————







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149

31-12-2025
TotalOf which: impaired
Without collateralWith collateral
Without collateralWith collateral
Maximum amount of the actual collateral that can be consideredMaximum amount of the actual collateral that can be considered
Amounts in million euros, except number of transactions in unitsNumber of transactionsGross amountNumber of operationsGross amountMortgage collateralOther collateralImpairment of accumulated value or accumulated losses in fair value due to credit riskNumber of transactionsGross amountNumber of operationsGross amountMortgage collateralOther collateralImpairment of accumulated value or accumulated losses in fair value due to credit risk
Credit entities——————————————
Public sector146975—852975—8
Other financial institutions and: individual shareholder9339446218211715945795025975221189
Non financial institutions and individual shareholder489,1925,09542,7005,5963,2719232,713296,0082,90126,7672,5851,1664202,420
Of which: Financing for constructions and property development249215237396954751673264156115450
Other warehouses3,000,0714,556515,2539,6993,7523,7773,6651,620,3432,401296,4705,3131,7302,2322,991
Total3,490,2109,751558,42415,4847,1454,7156,4801,916,9355,354323,5057,9802,9232,6635,508
Financing classified as non-current assets and disposable groups of items that have been classified as held for sale13,4992614,630566406141716,9011201,7202351105145





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c) Real estate business – Spain
i) Portfolio of home purchase loans to families
Home purchase loans granted to families in Spain on 30 June 2026 amounted to EUR 64,030 million (EUR 60,002 million at 31 December 2025). Of which mortgage collateral are 98.47%:
EUR Million
30-06-2026
31-12-2025
Gross AmountOf which: impairedGross AmountOf which: impaired
Home purchase loans to families64,030 518 60,002 625 
-Without mortgage collateral981 26 215 7 
- With mortgage collateral63,049 492 59,787 618 
The risk profile of the home purchase mortgage loan portfolio in Spain remained at a medium-low level, with limited prospects of additional impairment:
•Principal is repaid on all mortgages from the start.
•Early repayment is common so the average life of the transaction is well below that of the contract.
•High quality of collateral concentrated almost exclusively in financing the first home.
•Average affordability rate at the end of June stood at 22.5%.
•95% of the portfolio has a LTV below 80%, calculated as total risk/latest available house appraisal.
30-06-2026
Gross amount in books on the amount of the last appraisal (loan to value)
EUR MillionLess than or equal to 40%More than 40% or less than 60%More than 60% and less than 80%More than 80% and less or equal to 100%
More than 100%
Total
Gross amount17,826 21,061 20,703 2,940 519 63,049 
Of which: impaired108 136 116 61 71 492 
31-12-2025
Gross amount in books on the amount of the last appraisal (loan to value)
EUR MillionLess than or equal to 40%More than 40% or less than 60%More than 60% and less than 80%More than 80% and less or equal to 100%
More than 100%
Total
Gross amount17,191 20,310 18,811 2,812 663 59,787 
Of which: impaired122 158 151 84 103 618 
ii) Financing construction and property development
At 30 June 2026 and 31 December 2025 the financing amount related to construction and real estate business in Spain amounted to EUR 3,157 million and EUR 2,967 million net of allowances, respectively.
30-06-2026
EUR MillionGross amountExcess of gross exposure over maximum recoverable amount of effective collateralSpecific allowance
Financing for construction and property development recognised by the Group's credit institutions (including land) (business in Spain)3,172 98 15 
Of which: watchlist/ impaired17 — 8 
Memorandum items: Written-off assets232 
January - June 2026
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151

31-12-2025
EUR MillionGross amountExcess over collateral valueSpecific allowance
Financing for construction and property development recognised by the Group's credit institutions (including land) (business in Spain)2,984 211 17 
Of which: watchlist/ impaired31 — 11 
Memorandum items: Written-off assets240 
30-06-2026
31-12-2025
EUR Million
Carrying amount
Memorandum items:
Total loans and advances to customers excluding the public sector (business in Spain) (book value)249,522 240,609 
Total consolidated assets (Total business) (book value)1,954,465 1,867,515 
Impairment losses and provision for exposure classified as normal (business in Spain)1,037 1,086 
At the end 30 June 2026 and 31 December 2025 the concentration of this portfolio was as follows:
30-06-202631-12-2025
EUR Million
Loans: Gross amount
1. Without mortgage collateral
15 14 
2. With mortgage collateral
3,157 2,970 
2.1 Completed buildings1,092 976 
2.1.1 Residential982 658 
2.1.2 Other110 318 
2.2 Buildings and other constructions under construction2,053 1,981 
2.2.1 Residential1,953 1,913 
2.2.2 Other100 68 
2.3 Land12 13 
2.3.1 Developed consolidated land9 9 
2.3.2 Other land3 4 
Total3,1722,984
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d) Foreclosed real estate assets
The following table shows the breakdown at 30 June 2026 and 31 December 2025 of the foreclosed assets for the Spanish business:
30-06-2026
EUR Million
Gross carrying amount
Accumulated impairment losses
Of which: Impairment losses since time of the foreclosure
Carrying amount
Property assets arising from financing provided to construction and property development companies3,705 2,047 1,520 1,658 
Of which:
Completed Buildings439 310 271 129 
Residential114 67 57 47 
Other325 243 214 82 
Buildings under construction161 62 48 99 
Residential— — — — 
Other161 62 48 99 
Land3,105 1,675 1,201 1,430 
Developed Land663 366 215 297 
Other land2,442 1,309 986 1,133 
Property assets from home purchase mortgage loans to households322 171 118 151 
Other foreclosed property assets74 41 34 33 
Total property assets4,1012,2591,6721,842
31-12-2025
EUR Million
Gross carrying amount
Accumulated impairment losses
Of which: Impairment losses since time of the foreclosure
Carrying amount
Property assets arising from financing provided to construction and property development companies3,843 2,144 1,591 1,699 
Of which:
Completed Buildings481 324 282 157 
Residential129 71 60 58 
Other352 253 222 99 
Buildings under construction107 49 35 58 
Residential— — — — 
Other107 49 35 58 
Land3,255 1,771 1,274 1,484 
Developed Land776 429 260 347 
Other land2,479 1,342 1,014 1,137 
Property assets from home purchase mortgage loans to households334 172 119 162 
Other foreclosed property assets81 44 36 37 
Total property assets4,2582,3601,7461,898
Additionally, Grupo Santander holds a stake in entities holding real estate assets foreclosed or received in payment of debts for an amount of EUR 22 million and capital instruments foreclosed or received in payment of debts for an amount of EUR 9 million.





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153

e) Solvency information
The Group commands a solvency position above the levels required by regulators and by the European Central Bank. At 30 June 2026, at a consolidated level, the Group must maintain a minimum capital ratio of 9.83% of CET1 phase-in, applying the transitional CRR provision (4.50% being the requirement for Pillar I, 0.98% being the requirement for Pillar II, 2.50% being the requirement for capital conservation buffer, 1.25% being the requirement for systemically important institutions, 0.55% being the requirement for anti-cyclical capital buffer and 0.06% being the requirement for systemic risk requirement).
Grupo Santander must also maintain a minimum capital ratio of 11.66% of Tier 1 phase-in and a minimum total ratio of 14.09% phase-in.
At 30 June 2026, the Group has a capital ratio regulatory CET1 of 14.02% and a total ratio of 18.77%.
Capital ratio
30-06-2026
31-12-2025
Capital ratio
Level 1 ordinary eligible capital (million euros)86,44784,739
Level 1 additional eligible capital (million euros)10,2269,645
Level 2 eligible capital (million euros)19,07617,460
Risk-weighted assets (million euros)616,803629,430
Level 1 ordinary capital coefficient (CET 1)14.02%13.46%
Level 1 additional capital coefficient (AT1)1.66%1.53%
Level 1 capital coefficient (TIER1)15.67%15.00%
Level 2 capital coefficient (TIER 2)3.09%2.77%
Total capital coefficient18.77%17.77%
Leverage
30-06-2026
31-12-2025
Leverage
Tier 1 capital (EUR million)96,67394,385
Exposure (EUR million)2,010,6811,924,349
Leverage ratio4.81%4.90%

17.   Explanation added for translation to English
These interim condensed consolidated financial statements, translation of the interim condensed consolidated financial statements originally issued in Spanish, are presented on the basis of the regulatory financial reporting framework applicable to Grupo Santander in Spain (see Note 1.b).


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contraportadaenga.jpg



SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Banco Santander, S.A.
Date:   24 July 2026By:/s/ José García Cantera
Name:José García Cantera
Title:Chief Financial Officer