<ARTICLE> 9 <CIK> 0000811830 <NAME> Sovereign Bancorp, Inc. <MULTIPLIER> 1,000 <CURRENCY> U.S.$ <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1997 <PERIOD-END> MAR-31-1998 <EXCHANGE-RATE> 1.000 <CASH> 241,159 <INT-BEARING-DEPOSITS> 121,545 <FED-FUNDS-SOLD> 0 <TRADING-ASSETS> 0 <INVESTMENTS-HELD-FOR-SALE> 3,229,384 <INVESTMENTS-CARRYING> 3,072,949 <INVESTMENTS-MARKET> 3,100,189 <LOANS> 10,704,728 <ALLOWANCE> (111,908) <TOTAL-ASSETS> 18,096,121 <DEPOSITS> 9,247,612 <SHORT-TERM> 5,672,298 <LIABILITIES-OTHER> 701,693 <LONG-TERM> 1,487,264 <PREFERRED-MANDATORY> 0 <PREFERRED> 96,235 <COMMON> 460,695 <OTHER-SE> 430,324 <TOTAL-LIABILITIES-AND-EQUITY> 18,096,121 <INTEREST-LOAN> 212,315 <INTEREST-INVEST> 93,446 <INTEREST-OTHER> 0 <INTEREST-TOTAL> 305,761 <INTEREST-DEPOSIT> 94,909 <INTEREST-EXPENSE> 193,162 <INTEREST-INCOME-NET> 112,599 <LOAN-LOSSES> 6,500 <SECURITIES-GAINS> 8,326 <EXPENSE-OTHER> 45,988 <INCOME-PRETAX> 22,174 <INCOME-PRE-EXTRAORDINARY> 22,174 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 13,027 <EPS-PRIMARY> .09 <EPS-DILUTED> .09 <YIELD-ACTUAL> 2.86 <LOANS-NON> 87,225 <LOANS-PAST> 5,104 <LOANS-TROUBLED> 315 <LOANS-PROBLEM> 31,016 <ALLOWANCE-OPEN> 110,251 <CHARGE-OFFS> 8,978 <RECOVERIES> 2,503 <ALLOWANCE-CLOSE> 111,908 <ALLOWANCE-DOMESTIC> 85,951 <ALLOWANCE-FOREIGN> 0 <ALLOWANCE-UNALLOCATED> 25,957