Santander’s stock fell sharply on Wednesday, down nearly 4%, after the Spanish banking giant revealed plans to acquire U.S. regional lender Webster Bank for $12.2 billion. The move comes as Santander continues its strategy to expand its footprint in the United States, but investors reacted cautiously to the news, sending shares lower in early European trading.
The acquisition announcement coincided with the release of Santander’s fourth-quarter earnings, which beat analysts’ expectations. The bank reported net profits of €3.76 billion ($4.45 billion) for the final three months of 2025, surpassing the consensus forecast of €3.41 billion. Alongside the earnings report, Santander unveiled a new €5 billion share buyback program, signaling confidence in its long-term growth prospects.
Despite strong earnings, investors seemed wary of the challenges that come with a major U.S. expansion. The $12.2 billion deal for Webster Bank adds significant exposure to the American market, which carries different regulatory and economic risks compared to Europe. Analysts note that while the acquisition could bolster Santander’s U.S. presence, short-term stock volatility is expected as the market digests the news.
The broader European markets were relatively stable on Wednesday. The pan-European Stoxx 600 traded just above the flatline, while the U.K.’s FTSE 100, Germany’s DAX, and France’s CAC 40 saw modest gains of 0.3% to 0.7%. Other major banks, including UBS and Credit Agricole, also reported earnings, with UBS posting a 56% year-on-year rise in fourth-quarter profits, highlighting a mixed picture for the financial sector.
Meanwhile, the Asia-Pacific markets saw declines, mirroring losses in U.S. tech stocks. Precious metals, including gold, continued to gain, reflecting investors’ caution amid fluctuating market sentiment. As Santander moves forward with its Webster Bank deal, the coming months will be critical for assessing how the acquisition impacts both the bank’s stock performance and its long-term strategy in North America.
source: cnbc