SAN - Banco Santander Q1: Earnings Remain In A Sweet Spot

2024-04-30 23:57:33 ET

Summary

• Shares of Spanish giant Santander have gained just under 30% since last coverage, as the market continues to play catch-up to the bank's elevated levels of profitability.
• Q1 results were robust enough, with the bank reporting a strong mid-teens return on tangible equity despite the impact of the Spanish windfall banking tax.
• The bank's Spanish operations remain surprisingly profitable at this stage in the cycle, while Brazil is seeing some expected improvement.
• These shares remain reasonably valued below tangible book value, continuing to afford investors a reasonable margin of safety.

Shares of Spanish multinational banking giant Banco Santander ( SAN ) have done well since my last update following FY2023 results, returning around 27% in that time (with dividends) despite a slightly negative market response to first quarter results....

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