Business · Companies · 5 hrs ago
Santander and BBVA raise capital while eurozone banks lose ground
Santander and BBVA increased their capital buffers, bucking a broader decline among major eurozone banks.
Capital buffers show how much financial protection a bank has against losses, and the figures here use the CET1 measure.
Santander’s CET1 reached 14.02% at the end of June, up 56 basis points from 2025, even after the TSB purchase reduced its capital ratio.
A further expected hit from its Webster acquisition could lower the ratio by about 1.5 percentage points, according to estimates.
BBVA reached 12.9% in the first half and announced a €2 billion share buyback, which is expected to bring its ratio to 12.41%.
CaixaBank and Sabadell also held near their capital targets, at 12.54% and 13.11% respectively.
The average ratio at 58 large eurozone banks fell to 15.87% in the second quarter, making the Spanish banks’ performance stand out.
Santander aims to restore its ratio to 13% before the end of 2026, while analysts see a possible extra payout to its shareholders around 2028.
Santander and BBVA increased their capital ratios while the average ratio at 58 major eurozone banks fell for a second consecutive quarter.
Santander’s CET1 ratio was 14.02% at the end of June, 56 basis points higher than in 2025, despite the impact of its TSB acquisition.
BBVA added 20 basis points of capital in the first half of the year, reaching 12.9%, and announced a €2 billion share buyback.
Santander expects its CET1 ratio to fall after its Webster acquisition, then aims to recover to 13% before the end of 2026.
The average CET1 ratio of the 58 banks fell to 15.87% in the second quarter, down 43 basis points over the first half.
- Who
- Santander and BBVA, alongside CaixaBank and Sabadell, are compared with major eurozone banks.
- What
- The Spanish banks largely maintained or increased their capital ratios while the eurozone average declined.
- When
- The figures cover the first half of 2026, with eurozone data through the end of June.
- Where
- Spain and the eurozone.
- Why
- The article says dividends and large share buybacks are reducing European banks’ capital ratios, while Santander’s and BBVA’s capital generation outpaced distributions.
Spanish banks
Other major eurozone banks
Capital trend
Spanish banks
Santander and BBVA increased their capital ratios, while CaixaBank and Sabadell broadly held their levels.
Other major eurozone banks
The average CET1 ratio of the 58 largest eurozone banks fell for a second consecutive quarter.
Capital distributions
Spanish banks
Spanish banks set capital thresholds and distribute excess through dividends or share buybacks.
Other major eurozone banks
Dividends and large share buybacks are weighing on European banks’ capital ratios.
BBVA added 20 basis points of capital, reaching a CET1 ratio of 12.9%, and announced a €2 billion share buyback.
Santander’s CET1 ratio stood at 14.02%, while the average for 58 major eurozone banks was 15.87%.
Santander’s Webster acquisition in the United States was expected to reduce its CET1 ratio by 1.5 percentage points, according to estimates.
Santander aims to recover its CET1 ratio to 13%.
- Santander CET1 ratio
- 14.02% at the end of June
- Santander capital increase
- 56 basis points compared with 2025
- BBVA share buyback
- €2 billion
- Eurozone bank average
- 15.87% CET1 in the second quarter
- Eurozone first-half change
- Down 43 basis points