Santander Q1 CET1 Boosted by 20bps, Brazil Risk Cost Climbs to 4.1%
Banco Santander’s CET1 ratio gained a structural 20bps boost from Spain’s updated SME model and is projected above 12.8% by year-end despite headwinds under 20bps. Brazilian net interest income stayed stable while cost of risk rose to 4.1%, and TSB integration is scheduled for Q2 with Webster closing in H2.
1. Strong Capital Position
The CET1 ratio benefited from a structural 20bps tailwind driven by Spain’s updated SME model, and management expects to sustain above 12.8% by year-end despite headwinds under 20bps.
2. Brazil Performance
Brazil’s net interest income remained stable even as cost of risk rose to 4.1% due to single-name exposures, with guidance targeting 100–110bps for 2026–2028.
3. Acquisition Updates
TSB integration is slated for the second quarter following authorization, and the Webster purchase is progressing ahead of schedule for closing in the second half of the year.
4. Regional Growth and Fee Outlook
Spain sees opportunities in corporate and SME lending, Mexico anticipates cost of risk below 3% by year-end with growth in CIB, and wealth management fees—especially insurance—are projected to expand.