Santander's Q3 profit jump overshadowed by Brazil weakness
SAN•Santander's underlying third-quarter profit rose 19% to €3.85 billion, above forecasts, while profit in Brazil fell 15% as provisions increased. The bank reaffirmed its 2026-2028 targets, and its shares fell about 4%.
1. Brazil weighs on results
Santander reported underlying net profit of €3.85 billion for the third quarter, up 19% from a year earlier and above analysts' average forecast of €3.75 billion. Net profit in Brazil, its second-largest market, fell 15%, partly as provisions rose 23%; overall loan loss provisions increased 22% to €3.49 billion.
2. Markets diverge
Underlying net profit rose 48% in the United States and 40% in Britain, while increasing 21% in Mexico and 19% in Spain. Revenue rose 12%, costs increased 5%, and underlying return on tangible equity reached 16.8%, up from 16.0% in the previous quarter.
3. Targets reaffirmed
Santander reaffirmed its 2026-2028 targets, including mid-single-digit revenue growth in 2026, lower costs in constant euros, higher profits and a capital ratio of 12.8% to 13%. The bank said acquisitions of TSB and Webster are expected to help lift profit by more than 40% over the next three years to above €20 billion.
