Friday, November 26

BBVA and Banco Santander: the best earnings per share of the IBEX 35 banking system

Earnings per share (EPS) is one of the metrics most followed by investors when placing a bet on a security and acquires a special relevance each time the listed companies present results.

The EPS measures how much of what the listed company achieved thanks to the performance of its business corresponds to each share. Consequently, a high EPS invites you to take positions on a listed company. On the other hand, if an investor analyzes an operation based on EPS and this is low, he will opt for another value.

Under this premise, BBVA offers the highest EPS of the IBEX 35 banks, 0.55 euros, and projections indicate that it will raise it to 12 months to 0.62 euros. The entity chaired by Carlos Torres Vila closed the first nine months of the year with a profit of 3,311 million euros.

BBVA looks at 7 euros

This is one of the best results in its history, exceeding the consensus estimates, and for this reason it will initiate the repurchase of shares equivalent to 10 percent of the share capital for an amount of 3,500 million euros.

Other notable metrics were the CET 1 “fully loaded” capital ratio, which improved to 14.58 percent. from 11.52 percent a year earlier and the interest margin that improved in all regions for a group increase of 2.5 percent, to 10,708 million euros.

The figures presented translated not only into investor support in the form of share purchases, but received a barrage of price target improvements from the market consensus that sees the value at 7 euros a year from now. It is now trading at 6 euros.

Banco Santander targets 2019 highs

Banco Santander has a current EPS of 0.32 eros and it would improve for the next 12 months to 0.44 percent once the entity has announced that it is in a position to exceed its profitability objective for the year.

The entity set a profitability objective based on the ROTE of 10 percent, a level that it has already achieved in September by shedding 11.8 percent and considers that it will remain in the same area for the rest of the year.

The entity led by Ana Botín It also exceeded the consensus estimates by earning 5,849 million euros from January to September, improving the net interest margin and bringing the CET 1 “fully loaded” to 11.85 percent, within the range of the annual objective located between 11 percent. one hundred and 11 percent ”.

The figures also caused investment entities to renew their support for the entity with improvements in the target price that would bring the value to the highs of 2019, at 3.86 euros, achieved at the end of July of that year.

Bankinter supports the BPA

Caixabank now count on him third best EPS of the IBEX 35 entities, 0.72 euros, but it would decrease in one year, up to 0.34 euros, once the capital gains from the Bankia merger hit a maximum of 2,799 million euros in the first nine months of the year.

The extraordinary for the absorption shot the bank’s profit seven times compared to the same period last year, to 4,801 million euros. On the other hand, the entity directed by Jose Ignacio Goirigolzarri it offers the most attractive PER among its 35 club peers, the most potential, and the least “buy” advice.

Due to the fall in EPS in the future, Caixabank would lose in one year the third place that would fall into the hands of Bankinter. The projections of the entity led by María Dolores Dancausa would maintain the same BPA in one year currently offered at 0.42 euros.

Sabadell Bank it is the bank with the worst performance in this metric both now and in the next 12 months, with a slight improvement in the future. It currently offers EPS of 0.03 euros and within a year the earnings per share of those of César González-Bueno would rise to 0.05 euros.

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