Banco Santander SA BNC

Morningstar Rating
GBX908.00 −42.00 (4.42%)
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Company Report

Santander's Diverse Operations Support Earnings Stability

Santander generates around 45% of its earnings from its highly profitable Latin American operations. The subscale returns Santander has historically recorded in Europe and the US have obscured the high-double-digit/early-20s returns on equity Santander generates from its Latin American operations. Santander is confident that it can significantly improve the profitability of its European and US businesses, supported by higher interest rates. We wonder if Santander could boost its profitability, release capital, and rerate its valuation by trimming its portfolio, so that it operates only in areas where it has a clear competitive advantage.

Price vs Fair Value

BNC is trading at a LOCK|q@ZWr< premium.
Price
GBX950.00
Fair Value
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Uncertainty
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1-Star Price
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5-Star Price
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Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Santander operates in regions with higher growth prospects and levels of profitability compared with its European peers.

Bears

With 70% of its earnings coming from outside the eurozone, Santander is highly exposed to currency risk, especially emerging-market currency risk.

News

Trading Information

Previous Close Price
GBX950.00
Day Range
GBX897.00–950.00
52-Week Range
GBX741.00–1,122.00
Bid/Ask
GBX906.00 / GBX910.00
Shares Outstanding
14.45B
Market Cap
GBX13.12T
Volume/Avg
106,275 / 3M

Key Statistics

Price/Earnings (Normalized)
11.80
Price/Sales
2.61
Dividend Yield (Trailing)
2.20%
Dividend Yield (Forward)
2.24%
Dividend Payment Schedule
May, Nov
Total Yield
4.25%

Company Profile

Santander runs five global businesses: retail and commercial banking, corporate and investment banking, wealth management and insurance, payments, and a digital platform Openbank. Spain is the largest single profit contributor, followed by Brazil, the United States, Mexico and the United Kingdom.
Sector
Financial Services
Industry
Banks - Diversified
Stock Style Box
Large Core
Total Number of Employees
185,279

Competitors

Valuation

Metric
BNC
HSBC
C
Price/Earnings (Normalized)
11.808.3813.22
Price/Book Value
1.441.501.06
Price/Sales
2.613.992.32
Price/Cash Flow
3.975.917.05
Price/Earnings
BNC
HSBC
C

Financial Strength

Metric
BNC
HSBC
C
Quick Ratio
———
Current Ratio
———
Interest Coverage
———
Quick Ratio
No chart available

Profitability

Metric
BNC
HSBC
C
Return on Assets (Normalized)
0.81%0.84%—
Return on Equity (Normalized)
14.46%15.18%—
Return on Invested Capital (Normalized)
———
Return on Assets
BNC
HSBC
C

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1-Day Chart
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Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
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LOCK|?^cbd<TJLOCK|$b!$892B
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LOCK|lL!x<YLOCK|>$$351B
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LOCK|#V#!F%LOCK|xSD!$295B
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RY
LOCK|X<>p?$WLOCK|M&$282B
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LOCK|sZ!$yz@LOCK|Mw#$248B
Mitsubishi UFJ Financial Group Inc ADR
MUFG
LOCK|#^XjQzfLOCK|cv$241B
The Toronto-Dominion Bank
TD
LOCK|hkG&<$@LOCK|$JL$206B
Citigroup Inc
C
LOCK|?<??q%LOCK|RPc$203B
Banco Santander SA ADR
SAN
LOCK|<<#FY@LOCK|X?m@$182B
UBS Group AG Registered Shares
UBS
LOCK|#f@yvRYLOCK|Kbf$M$144B

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