Santander Shares Fall After Integration Costs Eat Into Profit

By Adria Calatayud

Banco Santander shares fell after the Spanish bank posted a decline in third-quarter net profit, with integration charges linked to its recent acquisitions weighing on the group's bottom line.

Shares in Santander were down 4.4% in European midday trading Wednesday, reducing the stock's year-to-date gain to 7%.

The Madrid-based bank--the biggest in the eurozone by market value--has embarked on a deal-driven reshuffle of its portfolio, buying Webster in the U.S. and TSB in the U.K. while offloading its business in Poland.

Santander said it made a third-quarter net profit of 3.43 billion euros ($3.82 billion), down 2% compared with the same period last year. The result was hit by charges and associated costs with recent transactions that amounted to 416 million euros for the quarter.

On an underlying basis, Santander's net profit jumped 19% to 3.85 billion euros, it said. Analysts had forecast the metric at 3.79 billion euros, according to consensus estimates provided by the bank.

Total operating income--the group's top-line figure--grew to 15.89 billion euros from 14.27 billion euros, against consensus expectations of 16.09 billion euros.

Both net interest income--the difference between what banks earn on loans and pay on deposits--and fees contributed to the top-line increase. Santander reported net interest income of 11.83 billion euros, up from 10.35 billion euros, with net fee income rising to 3.5 billion euros from 3.16 billion euros.

The bank also set aside more funds to cover bad loans, booking a 22% increase in net loan-loss provisions to 3.49 billion euros, but said it maintained sound credit quality.

Excluding recent acquisitions, Santander's top-line performance was somewhat weak, but the bank is keeping costs under control, analysts at Jefferies wrote in a note to clients.

Santander reiterated its full-year guidance, saying it is comfortably on track to meet its targets.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

October 28, 2026 07:10 ET (11:10 GMT)