Banco Santander stock seeks Brussels backing for power-grid funding

Banco Santander has asked Brussels to change European energy-market rules so private capital can help finance large electricity interconnections between countries. The bank raised the issue at an October 13 meeting in Brussels with representatives of the cabinet of Teresa Ribera, the European Commission executive vice-president responsible for a Clean, Just and Competitive Transition, according to Cinco Días.

Banco Santander stock traded at 11.31 euros on Lang & Schwarz at 09:50 CET on Wednesday, November 11, 2026.

Revenue visibility is the key issue

Santander told European officials that current rules for allocating cross-border capacity do not provide enough certainty for investors seeking revenue visibility beyond a 10-year horizon. Large interconnection projects require heavy upfront spending and can take decades to recover their costs, making predictable cash flows central to financing decisions.

The bank's proposal focuses on closing what it describes as a bankability gap between non-discriminatory European capacity-allocation rules and the longer-term income certainty sought by infrastructure investors. Santander also called for alliances bringing together specialist funds, energy companies, utilities, transmission-system operators and regulators.

For the bank, the objective is not a new retail product but a broader financing and advisory role in Europe's electrification push. Cross-border links can help move electricity between markets, use renewable generation more efficiently and integrate national energy systems. The commercial opportunity depends on regulatory progress and on whether proposed projects achieve financing.

Energy strategy follows stronger results

The Brussels initiative comes after a strong first nine months. Santander's official third-quarter release said underlying profit rose 16 percent year on year to 11.176 billion euros in January through September 2026, while attributable profit reached 12.405 billion euros. The statutory figure included a 1.9 billion euro net capital gain from the disposal of Santander Bank Polska and 666 million euros of charges, including integration costs for TSB and Webster.

Underlying profit therefore provides the clearer view of recurring operations in the latest period. The bank said revenue rose 8 percent to 46.807 billion euros, while customer numbers increased by 17 million year on year. Third-quarter underlying profit reached 3.8 billion euros, up 19 percent.

Management kept its 2026 targets unchanged. Santander expects mid-single-digit revenue growth and lower costs in constant euros, excluding the impact of Poland, TSB and Webster, while targeting profit above the 14.1 billion euros reported for 2025. The year-end CET1 target remains 12.8 to 13 percent. The bank also retains its 2028 ambitions of return on tangible equity above 20 percent, profit above 20 billion euros and more than 210 million customers.

The next quarterly earnings presentation is scheduled for February 3, 2027. Investors will watch whether regulatory discussions develop into financed infrastructure mandates and whether the bank sustains its operating targets while absorbing recent acquisitions.

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