Santander reported a 36% drop in Q2 net profit, falling to 3.52 billion euros ($4.01B), below the 3.53 billion euros forecast. Underlying profit, excluding one‑time items, rose 6% to 3.77 billion euros, showing core business resilience.

The decline stemmed from restructuring charges linked to the recently closed acquisition of U.K. lender TSB and a one‑time gain on selling a major stake in its Polish unit, which was booked in the prior quarter. These nonrecurring items erased a portion of the bank’s earnings.

Santander, the eurozone’s largest bank by market cap, is reshaping its portfolio through dealmaking. It agreed to acquire U.S. lender Webster Financial in a $12.3 billion transaction, adding a new dimension to its growth strategy.

The bank’s focus on strategic divestitures and acquisitions signals a shift toward a more streamlined, profitable model while maintaining its presence across the U.K., Poland, U.S., and Spain.