Banco Santander, S.A. has announced an agreement to acquire Webster Financial Corporation, the holding company of Webster Bank, N.A., in a $12.2 billion deal that will significantly expand the Spanish banking group’s footprint in the United States.
The transaction will see Santander acquire the Stamford, Connecticut-headquartered retail and commercial bank, creating a larger and more competitive institution for customers across the US. The combined business is expected to rank among the top ten retail and commercial banks in the country by assets, and within the top five deposit franchises across key states in the US Northeast.
Santander said the acquisition represents around 4 per cent of the group’s total assets and will remain a bolt-on deal at group level, while being strategically important for its US operations. The combination is designed to increase scale, strengthen the deposit base, and enhance capabilities across products, technology and services.
Ana Botín, Banco Santander executive chair, said: “This is an exciting step forward for Santander, as it creates a stronger bank for our customers and the communities we serve. Webster is one of the most efficient and profitable banks among its peers, and brings together two highly complementary franchises and will expand the products, technology and capabilities we can deliver with clear revenue opportunities from a stronger, more capable combined franchise. This transaction is strategically significant for our U.S. business, while remaining a bolt-on for the overall Group. It allows us to strengthen our franchise in both scale and profitability—improving our funding mix and economics, including lower funding costs—and puts us on track to deliver around 18% RoTE in the U.S. by 2028, among the top five for profitability within the 25 largest U.S.”
Founded in 1935, Webster provides services to individuals, families and businesses across consumer, commercial and healthcare financial services. The bank has a strong presence in affluent markets and middle-market lending, supported by a stable deposit base and a complementary branch network across the Northeastern United States.
Santander, meanwhile, is well known in the US for its consumer finance operations and has more recently strengthened its digital deposit gathering through Openbank. The group said integrating Webster, one of the most efficient deposit gatherers in the US market, is expected to accelerate this strategy and lead to a meaningful improvement in joint funding costs.
For customers of both banks, the combination is expected to deliver a wider branch and service footprint, improved digital and mobile banking capabilities, and broader product offerings across consumer, commercial and healthcare savings. Santander added that relationship-based local service will continue, backed by the scale and stability of one of the world’s largest banking groups.
Until the transaction is completed, Santander and Webster will continue to operate independently. There will be no immediate changes to customer accounts, branch access or day-to-day services. Santander said it remains committed to maintaining service levels throughout the integration process, alongside continued investment in technology and customer experience across the US.
Christiana Riley, CEO of Santander US, said: “This acquisition is a significant step forward in strengthening our commercial banking presence and filling in our retail branch footprint and scale, particularly in Connecticut where we are committed to maintaining a broad branch presence. The acquisition meaningfully expands our commercial franchise, resulting in a more balanced business mix and positioning us for sustainable, long-term growth.
Equally important, we are bringing aboard a talented leadership team with a strong track record in building a high-quality bank, and we are excited about the value we can create together for our customers and communities. Webster’s existing headquarters in Stamford, Connecticut, will be a core corporate office for Santander, alongside our corporate offices in Boston, New York, Miami and Dallas.”
John Ciulla, Chairman, President and CEO of Webster, described the deal as a combination of complementary strengths. He said: “This is an exciting combination that brings together complementary strengths and a shared commitment to excellence. As a larger organization, we will unlock greater scale, broader capabilities and new opportunities for growth—while remaining deeply focused on the people who define our success. I look forward to joining the Santander team and enhancing our ability to support clients across our expanded footprint. As a Connecticut-based bank with deep roots in the state, we also look forward to continuing our commitment to the communities we serve in the region.”
Following completion of the deal, Santander’s US operations are expected to have a combined balance sheet of approximately $327 billion in assets, $185 billion in loans and $172 billion in deposits, based on figures as of 31 December 2025.
The group said the transaction will materially improve Santander US’s business profile by combining its strength in consumer finance with Webster’s commercial banking expertise. The combined net loan-to-deposit ratio is expected to improve from 109 per cent to around 100 per cent, supported by Webster’s deposit base and lower funding costs.
Santander also expects the deal to generate combined cost synergies of around $800 million, equivalent to roughly 19 per cent of the combined cost base. These savings are expected to be delivered through disciplined execution and the banks’ prior integration experience. As a result, Santander US is targeting an efficiency ratio of below 40 per cent by 2028.
