SAN - Banco Santander stock gaps up as traders praise Q4 results

Banco Santader ( NYSE: SAN ) stock jumped as much as 7.1% in Thursday morning trading after the Spanish bank's 2022 profit of EUR9.61B (US$10.5B) jumped 18% from a year ago to a new record, boosted by a solid climb in revenues and interest rates during the year.

Moreover, its underlying return-on-tangible equity ratio stood at 13.37% in 2022 compared with 12.73% in the year-earlier period.

For the fourth quarter, the lender posted total revenue of EUR13.52B, falling short of the EUR 13.59B consensus estimate, compared with EUR11.78B a year before.

Q4 attributable profit of EUR2.29B slid from EUR2.42B in Q3 and inched up from EUR2.28B in the year-ago quarter. The Q/Q decline was due to the DGF contribution in Spain and the Bank Levy in the UK, as well as the settlement agreed with the FCA regarding Anti-Money Laundering controls prior to 2017 in the UK.

In an effort to prepare for an uncertain economic backdrop, net loan-loss provisions more than doubled to EUR 3.02B from a year ago and rose from EUR2.76B in Q3.

Net interest income of EUR10.16B rose 1.1% from Q3 and was about 17% higher than Q4 2021.

See why Seeking Alpha contributor The Investment Doctor in December viewed SAN as a Buy.

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