The 5% reduction in the TBV/sh is reversible while goodwill impairments did not come as a surprise as confirmed by the group’s depressed P/BV ratio. The same thing as regards DTA adjustments which reflect management’s view that profits will not return to normal levels for two or three years in spite of a rapid top-line recovery. However, capital generation should remain at enviable levels if FX headwinds disappear.
29 Jul 2020
Operation of truth
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Operation of truth
Banco Santander, S.A. (BNC:LON) | 390 21.4 1.4% | Mkt Cap: 61,641m
- Published:
29 Jul 2020 -
Author:
David Grinsztajn -
Pages:
2
The 5% reduction in the TBV/sh is reversible while goodwill impairments did not come as a surprise as confirmed by the group’s depressed P/BV ratio. The same thing as regards DTA adjustments which reflect management’s view that profits will not return to normal levels for two or three years in spite of a rapid top-line recovery. However, capital generation should remain at enviable levels if FX headwinds disappear.