Analysed by Bankinter
Santander has made a strong start to the year, reiterating its 2026 guidance and the targets of the 2026–2028 plan (net banking income in excess of €20,000 million with a return on total equity (RoTE) of over 20.0% in 2028). The fundamentals are solid (capital, efficiency and profitability) and non-performing loans remain at historically low levels. Santander is enjoying a strong earnings performance (up 17.0% in EPS) with a geographically diversified business and attractive returns for shareholders (around €10bn in 2025/2026 via share buybacks and dividends; 6.7% of market capitalisation).
As for BBVA, the Q1 2026 figures confirm the bank’s strong performance in terms of business activity (up 17.0% in lending), earnings and profitability (RoTE of 21.7%) with well-managed non-performing loans (2.6%). The capital ratio remains at a comfortable level (12.83% versus 11.50%/12.0% target) and the management team has raised its profitability/RoTE guidance to approximately 20% in 2026 (versus the previous 20.0%). In short, BBVA’s fundamentals are solid and its valuation multiples attractive.
RecommendationBuy Santander, Target Price €12.45 per share Buy BBVA, Target Price €24.35 per share
