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BBVA vs Santander

Side-by-side credit pricing comparison from Pillar 3 disclosures.

Last updated: March 2026 · Data source: public Pillar 3 disclosures
Verdict:

On a representative BBB+ EUR 25M 5-year term loan, Santander is the cheaper lender by 25bp in minimum spread. For a EUR 25M facility, that's EUR 61,902 per year.

Bank profiles compared

Metric BBVA
Spain		 Santander
Spain
IRB approachF-IRBMixed
Cost-to-income38.2%41.2%
Effective tax rate34.0%28.0%
Avg corporate PD1.76%2.91%
Avg LGD unsecured38.3%38.9%
Avg LGD secured23.0%23.3%
Funding spread (bp)18bp18bp
Corporate EADEUR 157bnEUR 152bn

Sample RAROC: BBB+ EUR 25M 5Y term loan

Both banks priced on the exact same deal — 150bp spread, 20bp commitment fee, 60-month maturity. Higher RAROC means the bank earns more from this deal. Lower min-spread means the borrower gets a better rate.

Component BBVA Santander
Annual revenueEUR 385,000EUR 385,000
Operating costEUR 154,000EUR 154,000
Expected lossEUR 28,750EUR 28,750
Capital required (FPE)EUR 2,451,320EUR 2,451,320
RAROC (after tax)6.20%6.76%
Min spread for 12% RAROC294bp269bp
This is just one sample deal.

Your actual portfolio has different ratings, sizes, maturities, and collateral. The cheapest bank for one deal isn't always cheapest for another. Upload your real facilities and OpenRAROC will run the same calculation on each, against BBVA, Santander, and 57 other banks.

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BBVA full profile Santander full profile All banks RAROC methodology

FAQ: BBVA vs Santander

Which bank is cheaper on corporate credit: BBVA or Santander?
On a BBB+ EUR 25M 5-year term loan, Santander requires a minimum spread of 269bp to reach a 12% RAROC hurdle, versus 294bp at the other bank — a difference of 25bp on the same deal.
How do BBVA and Santander compare on corporate PD?
BBVA reports an EAD-weighted corporate PD of 1.76%, while Santander reports 2.91%. The gap reflects differences in obligor mix and geography rather than underwriting quality.
How do the two banks differ on IRB approach?
BBVA uses F-IRB and Santander uses Mixed. The IRB approach determines whether internal LGD models or supervisory LGDs apply, which materially affects capital required on every corporate facility.
What deal is used in this comparison?
A single standardised facility: BBB+ rated, EUR 25M drawn on a EUR 30M commitment, 5-year tenor, 150bp spread, 20bp commitment fee. Both banks are priced on this exact deal using their own disclosed Pillar 3 parameters.