Banco Santander, S.A. (BNC) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning everyone and thank you for joining Santander's first half 2026 results presentation. Today's presentation will follow the usual structure. First, Hector will talk about our results with a special focus on the performance of our global businesses. Jose will then cover the financial results in more detail. Finally, Hector will close with the outlook before we open the line for Q&A. Before we start, I would like to highlight that this is the first quarter in which TSB is included in our results after the acquisition closed on the 30th of April. Our underlying metrics exclude the impact of Poland and TSP integration-related restructuring costs to provide a clearer view of the underlying trends. With that, Hector, over to you. Thanks, Rahul, and good morning to everyone. Q2 was another record quarter for Santander, demonstrating again the strength of our strategy and the resilience of our business models. Our quarterly profit hit a new record of $3.8 billion, making H126 the best half ever, driven by strong revenue growth across global businesses and our growing franchise of 182 million customers, up by more than 12 million year-on-year, including the 4 million TSV customers we welcomed to the group in May. We achieved this while executing one transformation, making excellent progress towards a simpler and more integrated model. This is translating into tangible results, with efficiency improving by 3 percentage points and underlying ROTE increasing to 15.6%. Our balance sheet remains very solid, with robust credit quality and a strong CET1 ratio of 14%, which includes the impact of TSB. In this context of high capital levels, underlying ROTE adjusted for excess capital is close to 17%. All of this continues to translate into strong shareholder value creation...