The Spanish banking giant Santander has presented an ambitious strategic plan for 2026–2028, aiming to achieve a net profit exceeding 20 billion euros. The institution led by Ana Bot 1n intends to focus on digitization, the use of artificial intelligence, and cost optimization. The Ibex 35 index reached historic records above the level of 18,460 points, coinciding with investors' enthusiastic reaction to Santander's announcement of doubling its cash dividend and a general improvement in sentiment on European markets.

Ambitious target of 20 billion euros

Banco Santander plans to achieve an annual net profit of 20 billion euros by 2028 through efficiency and digitization.

Billion in profit from AI

The bank estimates that the broad implementation of artificial intelligence will improve operational efficiency and bring one billion euros in savings.

Growth in dividends and customers

The plan includes doubling the cash dividend and increasing the customer base to 210 million people worldwide.

Records on the Madrid Stock Exchange

The Ibex 35 index reached a historic high, driven by optimistic forecasts from Spain's largest bank.

The Spanish banking sector is experiencing a period of unprecedented prosperity, symbolized by the latest strategy update from the Santander Group. The bank has set itself a target of generating over 20 billion euros in net profit by 2028, which would represent growth of over 40% compared to current results. A key pillar of this expansion is to increase the customer base to 210 million and maintain rigorous cost discipline supported by technology. The management estimates that the implementation of AI-based solutions will generate additional business value exceeding a total of one billion euros by 2028. The new strategy also involves a significant reorganization of capital redistribution policy, including doubling cash payouts to shareholders and continuing share buyback programs. Founded in 1857, Banco Santander evolved from a local institution in the province of Cantabria into a global player that has systematically diversified its revenues between European markets and Latin and North America since the 2008 financial crisis. The presentation of the financial plans coincided with the publication of reports on executive compensation, which sparked public debate in Spain. The salary of the chairwoman of the supervisory board, Ana Botín, increased by 34.6% last year, reaching a record level of 18.54 million euros. The wage growth rate for CEOs of the largest banks listed in the IBEX 35 index averaged 12%, which is directly linked to record interest margins obtained due to interest rate hikes by the European Central Bank. Despite such a strong cash position, the bank announces caution regarding mergers and acquisitions in the next two years, prioritizing organic growth over risky acquisitions. 20 mld € — Santander's net profit target for 2028 Market analysts, including experts from Citi and Jefferies, positively assess the clarity of the bank's strategic goals, pointing to solid foundations for profitability growth. The reaction of the Madrid stock exchange confirmed these sentiments; Santander's shares were the main driver of gains that pushed the Spanish stock exchange to its highest levels in history. Simultaneously, the bank proposed electing Deborah Vieitas as a new independent board member, which is intended to strengthen corporate oversight in the face of the group's upcoming digital transformation.

Mentioned People

  • Ana Bot 1n — Chairwoman of the Santander Group, author of the bank's new strategy.
  • H 1ctor Grisi — Chief Executive Officer (CEO) of Banco Santander.
  • Deborah Vieitas — Candidate for independent member of the Santander supervisory board.