Banco Santander reported fourth‐quarter results that exceeded consensus forecasts, delivering earnings per share of $0.28 and generating approximately $19 billion in total revenue. Net profit for the quarter rose by 15% year‐over‐year, driven by a 12% increase in net interest income. The bank’s cost‐to‐income ratio improved to 48%, reflecting disciplined expense management, while provisions for credit losses remained stable at 0.90% of gross loans, underscoring a resilient credit portfolio.

Santander announced a definitive agreement to acquire Webster Financial Corporation in a transaction valued at $12 billion. The deal is expected to close in the second half of 2026, subject to regulatory approvals, and will expand Santander’s U.S. footprint with approximately $60 billion in pro forma loans and $70 billion in deposits. Management projects the acquisition will be earnings‐per‐share accretive by the second year post‐close, with cost synergies of $250 million annualized by 2028.

Santander UK delivered a 14% increase in annual pretax profit, reaching £3.2 billion, driven by a £1.5 billion boost in net interest income and a 7% reduction in operating expenses. Provision charges declined by 20% year‐over‐year to £400 million. Reflecting strong capital generation, the group approved a €5 billion share‐buyback program, equivalent to 3% of outstanding shares, to be executed over the next 12 months.

The group reported an enterprise‐value‐to‐sales multiple of 2.48 and an enterprise‐value‐to‐operating‐cash‐flow ratio of 7.35, indicating attractive cash‐flow generation relative to enterprise value. The earnings yield stood at 8.85%. However, the debt‐to‐equity ratio was elevated at 3.13, while the current ratio was 0.32, signaling potential short‐term liquidity pressures. Management reaffirmed its CET1 capital ratio target of at least 12.5% by year‐end 2026, providing a buffer for further organic growth and future M&A activity.