Finance
Santander targets over 20 billion euros profit by 2028, tweaks dividend policy
Published by Global Banking & Finance Review®
Posted on February 25, 2026
2 min readLast updated: February 25, 2026
Quick Summary
Santander targets profit above €20B ($23.6B) and ROTE over 20% by 2028. It plans to cut cost-to-income to ~36% from 41.2% in 2025, leveraging IT upgrades and synergies from U.S. and UK deals.
MADRID, Feb 25 (Reuters) - Spain's Santander on Wednesday said it aimed to book a profit above 20 billion euros ($23.61 billion) by 2028 after lifting its profitability ratio by almost four percentage points to above 20%, helped by synergies from recent deals in the U.S. and Britain.
The goals are part of a 2026-2028 investor update it will hold in London following the proposed $12.2 billion acquisition of Webster earlier this month and of TSB in July last year.
"Our 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.
Botin added that customer growth, together with disciplined execution of the bank's global business model, would drive higher revenues and structurally lower costs.
For end of 2028, it targeted a cost-to-income ratio of around 36% from 41.2% in 2025, or from 45.3% when taking into account additional costs such as the banking tax and other recurring operating costs, thanks to improved efficiencies from its IT transformation.
As part of its remuneration policy, the bank has a 50% payout ratio, which it distributes half in cash and half in shares.
From 2027 onwards, however, Santander said it would increase its cash proportion to 35%, with around 15% in shares, adding it expected to operate in 2028 with a core tier-1 capital ratio of around 13%.
($1 = 0.8472 euros)
(Reporting by Jesús Aguado; Editing by David Latona)
Key Takeaways
- •Santander aims for profit above €20B ($23.6B) by 2028.
- •Group ROTE target raised to above 20% by 2028.
- •Cost-to-income ratio targeted at ~36% by 2028, from 41.2% in 2025 (45.3% including taxes).
- •Drivers include IT transformation efficiencies and cost synergies from recent U.S. and UK deals.
- •Article uses an exchange rate of $1 = 0.8472 euros.
Frequently Asked Questions about Santander targets over 20 billion euros profit by 2028, tweaks dividend policy
1What is the main topic?
Santander raised its medium-term goals, targeting profit above €20B ($23.6B) and a return on tangible equity above 20% by 2028. The update reflects improved efficiency and integration benefits.
2How will Santander reach these targets?
Management cites efficiency gains from IT transformation and cost synergies from recent U.S. and UK deals. These actions aim to lift profitability while streamlining operations.
3What is the cost-to-income ratio target?
Santander aims to reduce its cost-to-income ratio to around 36% by 2028, from 41.2% in 2025 (45.3% including banking taxes). A lower ratio indicates better operating efficiency.
