Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on BANCO SANTANDER SA. We currently have 4 research reports from 1 professional analysts.
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BANCO SANTANDER SA
BANCO SANTANDER SA
Quarterly performance on track as planned
25 Jan 17
The group reported a good set of quarterly results. The attributable profit came out with a €1,598m profit, ahead of expectations in spite of more than €200m of extraordinary charges. Management reiterated its guidance for 2017 and 2018 after a 2016 delivery ahead of plan.
Quarterly results on track
26 Oct 16
The group posted stronger-than-expected third quarter results. The Q3 16 attributable profit came in at €1,695m, up 3% qoq on an underlying basis (and 2% when adjusted for FX impact). This corresponded to a stable 11% annualised ROTE. Full-year guidance has been maintained.
Advocated business model superiority at test
29 Jan 16
The group reported a €25m profit in the fourth quarter, hit by €1.4bn of net extraordinary charges. On an underlying basis, profit came at €1,460m, in line with consensus expectations, but helped by a low tax rate. Despite the deteriorating market conditions, management maintained its financial objectives, reiterating the superiority of its business model in this environment.
21 Dec 15
Bank of Portugal and the country’s resolution authority has decided to sell most of Banco Banif’s assets and liabilities to Banco Santander Totta for a consideration of €150m and after having injected €2,225m into the company to ensure adequate provisioning. Minority shareholders (39.5%) and subordinated creditors will be left in Banif which will retain some assets to be liquidated. The deal is not transformational for Santander. Although Banco Banif has a particularly strong presence in the archipelagos of Madeira and the Azores, it will increase Totta’s market share in loans and deposits by only 2.5% to 14.5% at a country level.
Industry fundamentals remain positive
21 Feb 17
The Biotech Growth Trust (BIOG) is a specialist vehicle, aiming to generate long-term capital growth via investment in global biotech stocks. Following a particularly volatile period for the biotech industry, where concerns about drug pricing and investor risk aversion have weighed heavily on stock prices, the managers are hopeful that greater clarity regarding US healthcare policy will lead to continued improved performance of biotech stocks. Industry fundamentals remain attractive, including continued innovation and valuations are very supportive, which offers the potential for higher industry merger and acquisition activity.
Lloyds, Best Of The Banks
23 Feb 17
Lloyds Banking Group PLC (LLOY) reported a strong result for FY-16, which has allowed it to pay a special dividend, plus has encouraged the UK government to reduce its stake in the bank to below 5%. Lloyds’ acquisition of the MBNA credit card business is proceeding on track, with all key M&A metrics being well satisfied. The outlook for Lloyds’ capital base, its profitability and thus the dividend prospects have all improved. This encourages us to ascribe a Buy rating to the stock, with a target price of 80p per share, derived from a prospective Price / Book value of 1.3x and a P/E ratio of 13x which we think are justifiable ratios.
Marked confidence in profitability resilience
22 Feb 17
LBG posted a good set of results at the operating level. Management showed its confidence in the group’s ability to protect its indecent profitability levels over the next three years by recommending an increased ordinary dividend and the payment of a special dividend, and by setting a stable return on required equity objectives.
Accelerated non-core assets rundown
23 Feb 17
The quarterly results were depressed by some one-offs or seasonal charges and by the costs associated with the accelerated run-down of non-core assets. The underlying profitability remained remarkably stable at a decent 11% ROTE. The regulatory capital position enjoyed a strong boost from non-organic items.
We maintain our ADD recommendation on an OK UK
23 Feb 17
We have updated our model after Hammerson’s FY16 results. As a reminder, the group published positive numbers with NRI standing at £346.5m and gaining 2.2% lfl. This stood marginally ahead of our expectations. EPS stood at 29.2p, gaining 8.6% and the dividend was announced at 24p. The group’s NAV at 739p was up 4.1%, standing at a substantial premium to the current stock price, and the company’s GAV at £9.97bn gained 19.1% yoy on acquisitions. Leasing activity reached 142,000sqm, major acquisitions include Grand Central in the UK (£350m) which was acquired in H1 and the Dundrum Town Centre in Dublin. Disposals stood at £365m for eight properties in all regions. So far leasing activity has remained positive, although the group has noticed a deceleration compared to FY15, with £24.9m let vs £27.9m in 2015, thus a decrease in occupancy rate from 97.7% in FY15 to 97.5%. Average cost of debt has been reduced further to 3.1% by the recent debt issues of over £1.2bn, and the LTV now stands at 41% (or 36% under the new methodology) compared with 38% yoy. Management maintains confidence for FY17 with guidance of EPS growth between 6% and 8%.
Licenced to Grow
27 Feb 17
PCFG is embarking on an exciting journey as a bank which we believe is transformational, providing the group access to a wider part of the asset finance market, entry to which is currently restricted due to its higher cost of funding. We forecast an acceleration of growth higher up the credit spectrum which constitutes c80% of the broker business which PCFG cannot currently access. We estimate that PCFG may look to raise c£10m of equity this year to operate as a bank and fund growth which we have factored into our forecasts. We maintain our TP of 38p, implying a 2017E P/B of 2.1 which we think is fair for a bank in its infancy and in the medium term targeting RoE of 17.5% and loan growth of 35% CAGR.