* Santander says is on track to meet 2026-2028 targets

* Bank has improved efficiency by 250 basis points in Q1

* Botin says diversification will help weather

uncertainty

* Investors to vote on capital increase to help fund

Webster deal

(Adds higher efficiency gains in paragraph 6, data on capital,

shares in paragraph 8, Webster valuation from 9 onwards)

By Jesús Aguado

MADRID, March 27 (Reuters) - Santander on

Friday reaffirmed its 2026-2028 financial targets despite global

economic uncertainty, citing its diversified business model

after a strong start to 2026.

The euro zone's largest bank by market value said it was

also on track to meet its 2026 goals as positive trends from

previous years continued into the first quarter, supported by

client growth and rising revenues. Costs were expected to fall

year on year in constant euros.

Executive Chair Ana Botin said in a statement as part of a

speech she is expected to deliver at the bank's shareholder

meeting on Friday that its balanced presence across different

countries would "significantly" mitigate risk by reducing

volatility in a global environment that was becoming

increasingly complex.

"The world now faces the scenario of higher inflation and

lower growth, threats that become more likely with each passing

day. Their severity will depend on the duration of the conflict

(in the Gulf) and its impact on global energy supply," Botin

said in the statement.

In February, Santander said it was targeting higher profits

for 2026 compared with a record 14.1 billion euros ($16.24

billion) in 2025. Last month, Santander raised its profit target

by more than 40% to above 20 billion euros in 2028 compared with

2025, supported by benefits from acquisitions of U.S. lender

Webster and Britain's TSB.

Santander said it had improved efficiency gains by around

250 basis points in the first quarter, benefiting from its IT

transformation.

At 0850 GMT, shares in Santander fell 1%.

At the meeting, Santander's shareholders will vote on the

issuance of more than 334.8 million new shares to help finance

the Webster deal, which is 65% funded in cash and 35% in new

shares.

Based on Santander's closing share price on Thursday,

Webster is valued at around $11.6 billion, of which $3.63

billion would be paid in new shares.

Botin is also expected to say that artificial intelligence

will help to generate more than 1 billion euros in savings and

revenues by 2028.

($1 = 0.8680 euros)