Friday, March 24

Banco Santander fights to consolidate the 3 euros

Santander Bank seeks to consolidate a stock market position that has not exceeded the lower part of three euros for almost two years, and in this process of convincing investors it plays a very relevant role his career in the United States, which this Monday has received a great boost.

The US subsidiary of the entity chaired by Ana Botin, Santander Holdings USA, was made this Monday with 100 percent of its consumer division, Santander Consumer USA, once the Federal Reserve The US has approved the merger operation between the two companies.

According to statement that was sent on Friday to the regulatory body of the US markets, the SEC, Santander will pay 41.5 dollars per share to acquire 20 percent of Santander Consumer USA which it did not yet control, thus raising the total price of the operation to 2,530 million dollars.

Santander advances convince the market

From rent 4 They recalled that this operation is in line with the bank’s strategy of buying up the minority interests of its various subsidiaries, allowing it to obtain more tax benefits, increase income from dividends and optimize capital management.

rent 4, therefore, considers that the transaction will not have a direct impact on the current price of Santander Bank, but it does appreciate that the takeover of the US consumer division serves to ratify the overweight recommendation maintained on its stocks, to which it assigns a target price of 3.99 euros.

The perspective of rent 4 regarding the actions of Santander is slightly more optimistic than that of the analyst consensus, which places the bank’s equity assets at around 3.74 euros.

This target price would also imply a revaluation of 21.4 percent compared to the 3.1 euros at which the bank’s securities were trading during Monday’s session.

This reaffirmation of rent 4 in their vision of the Cantabrian entity they have also followed analysts from Bestinver and GVC Gaesco, who in his updates on Santander Bank made during the last day of January have maintained their purchase recommendations with target prices of 3.7 and 3.8 euros, respectively.

Santander Bank, in fact, has the approval of 18 of the 32 analysts who have issued their recommendation on the company in the Bloomberg systems, a general consensus that registers only 2 negative opinions regarding the short-term future of the Spanish company.

A 2022 of growth

Some of the key elements of this confidence of the experts in Santander Bank He offered it, precisely, GVC Gaesco, which in its stock selection report for this January 2022 bet on the entity “to increase its presence in a financial sector that is going to benefit from the latest restructurings and an environment of rising rates, or at least, of monetary normalization.

The analysis of GVC Gaesco highlighted that in the results Santander will present on February 2, the highest profits of the last decade can be expected, with an estimate of attributable ordinary profit for 2021 that will amount to 8,357 million euros, achieved thanks to total revenues that will stand at 46,257 million euros.

“The growth of the results of 2021 has been based fundamentally on the behavior of Santander USA and Santander UK, due to the good performance of the cost of risk,” the report stated.

In this context, GVC Gaesco predicts positive prospects for the 2022 financial year, based on volume growth, both in loans and in deposits and investment funds, which will allow the bank to maintain the rate of increase in income.

An increase that, “combined with the results of the restructuring undertaken in 2021, will allow advances in the gross operating result,” according to the manager’s analysis.

pending bank accounts

So that, Santander Bank seems to be taking steps in the right direction, in the eyes of the market, which is still pending other maneuvers by the financial institution, such as its possible capital increase in the event that it wants to undertake the purchase of Citi Banamex in Mexico.

In Mexico, precisely, Santander carried out an operation similar to the one carried out in U.S, buying the participation of minority shareholders to obtain greater control over its armed forces in foreign countries and to be able to shape its road map at a global level without interference.