Spain’s leading financial institution Santander has unveiled ambitious plans to increase annual profits to more than 20 billion euros by 2028, driven by expansion efforts in American and British markets along with technological improvements and customer growth.
The Madrid-based banking giant announced Wednesday that it achieved record net earnings of 14.1 billion euros in 2025 and has raised its profitability target by nearly four percentage points to exceed 20%, anticipating benefits from its recent purchases of U.S.-based Webster bank and Britain’s TSB.
The bank’s strategy of operating across multiple geographical regions – currently spanning 10 primary markets – has historically protected it from economic slowdowns in specific areas, though it has remained exposed to currency fluctuations, especially in Latin American countries.
Following the announcement, Santander’s stock price rose more than 2% at 0918 GMT, reflecting investor confidence in the eurozone’s largest lender by market capitalization.
The acquisitions of Webster and TSB have increased the proportion of Santander’s gross operating profit from developed markets to nearly two-thirds on a pro-forma basis, up from the previous 56%.
“Our (2026-2028) strategic plan sets a new standard for profitable growth, with the aim to serve more than 210 million customers across Europe and the Americas,” Executive Chair Ana Botin said in a statement.
The bank currently serves approximately 180 million clients worldwide as of the end of last year.
Botin explained that implementing the bank’s global business framework would increase revenues while reducing operational costs. The cost-cutting initiatives focus on developing a unified IT system and rolling out a standardized global operating model.
Santander plans to enhance its efficiency ratio to approximately 36% by 2028’s end, improving from the 41.2% recorded in 2025.
The financial institution has established a 50% shareholder payout ratio, divided equally between cash and stock distributions. However, beginning in 2027, the cash portion will increase to 35% as part of its objective to achieve a core tier-1 capital ratio of about 13% by 2028, down from 13.5% at 2025’s conclusion.
