He financial sector It’s been in the eye of the hurricane since early March, when troubles were already plagued by misfortune SVB Finance. Several other regional US banks and even the Swiss giant followed in the fall CreditSuissewhich must be taken over by UBS in a transaction sponsored by the Swiss National Bank.
The result was the collapse of European banks on the equity markets, which were the main protagonists just at the beginning of the year, with rises favored by central bank rate hikes. The specifics of the Credit Suisse bailout have contributed to the climate of volatility and fear dominating the market, with AT1 holders (the famous CoCos) seen as the big losers, ahead of shareholders.
Not surprisingly, authorities initially had a hard time reassuring investors about the health of the companies, but money is gradually flowing back into the sector. As soon as the water seems calm, the photo leaves Spain’s Banco Santander as the best EURO STOXX 50 bank so far this year and with a potential of almost 30%.
The bank managed by Ana Botín accumulates a revaluation of 24.4% in these first three months of 2023, despite the declines in recent weeks.
Meanwhile, the also Spanish BBVA 2023 increases by 22%, the Italian Intesa Sanpaolo 10% and the French BNP Paribas almost 7.3%. Dutchman ING group stands at tables (-0.1%). From the Euro Stoxx 50, the German Deutsche Bank falls 13.7% after being one of the marked banks for several days.
Analysts also see room for Banco Santander to continue its comeback to the stock market. According to Reuters, the research houses covering the stock give an average “buy” rating and a Target price of EUR 4.53. This review represents a additional potential of 30% in relation to the current levels at which the company is trading.
Banco Santander dividend
Banco Santander held an appointment at its general meeting at the end of March, at which the payment of a final cash dividend of 5.95 cents per share Earnings 2022 burdened. This brings the cash payment for the year to 11.78 cents, 18% more than in the previous year.
Santander also has on the table a new share buyback program on the market worth 921 million euros. The aim is to reduce the share capital by amortizing the purchased securities, which will directly affect the shareholder by improving earnings per share and therefore profitability.
Upon completion of this transaction, total shareholder compensation for 2022 will be €3,842 million, around 40% of ordinary profit for the year: €1,942 million in cash and a further €1,900 million in share buybacks.
Additionally, during the last Investor Day on February 28 in London, the company already announced its intention to increase the payout or dividend policy ratio to around 50% of earnings between 2023 and 2025, with both cash dividends and share buybacks.