Home / Banks / Comparison

Santander vs BBVA

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 Santander
Spain		 BBVA
Spain
IRB approachMixedF-IRB
Cost-to-income41.2%38.2%
Effective tax rate28.0%34.0%
Avg corporate PD2.91%1.76%
Avg LGD unsecured38.9%38.3%
Avg LGD secured23.3%23.0%
Funding spread (bp)18bp18bp
Corporate EADEUR 152bnEUR 157bn

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 Santander BBVA
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)6.76%6.20%
Min spread for 12% RAROC269bp294bp
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 Santander, BBVA, and 57 other banks.

Compare your portfolio

Read more

Santander full profile BBVA full profile All banks RAROC methodology

FAQ: Santander vs BBVA

Which bank is cheaper on corporate credit: Santander or BBVA?
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 Santander and BBVA compare on corporate PD?
Santander reports an EAD-weighted corporate PD of 2.91%, while BBVA reports 1.76%. The gap reflects differences in obligor mix and geography rather than underwriting quality.
How do the two banks differ on IRB approach?
Santander uses Mixed and BBVA uses F-IRB. 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.