Santander reports 18% rise in annual profit as Brazil unit sees strong performance

Banco Santander reported an 18 percent increase in net income for 2018 on the back of strong growth in the United States, Brazil and Spain.

Looking at the bank’s annual performance, net income reached 7.81 billion euros ($8.93 billion) last year, compared to 6.62 billion euros in 2017.

The Spanish bank also reported Wednesday an increase of nearly 4 percent in net income in the last quarter of 2018 from the previous three-month period — reaching 2.07 billion euros. Shares were marginally higher in morning trade on Wednesday.

Speaking to CNBC, Ana Botin, the executive chairman at the bank, said she is “extremely proud” of the last three years.

“We are extremely proud of what we have achieved these three years, because we have … delivered growth, very few European banks delivered growth. We have delivered more than 20 percent of growth in the top line with profitability and strengthening the balance sheet,” she told CNBC’s Geoff Cutmore in Madrid.

Botin also said that the bank will keep the current strategy, which is “based on customer loyalty and digital excellence.”

Looking at the different regions where the bank operates, the United States saw underlying attributable profit up by 42 percent year-on-year; Brazil rose 22 percent and Spain 21 percent. Argentina and the U.K. didn’t register positive growth.

“We have a lot of faith in Brazil,” Botin said. “Brazil suffered one of the most deep recessions in history, there was a 9 percent decrease in GDP and our bank performed very well through that period.”

She also commented on the appointment of new leader Jair Bolsonaro and his plans for the country.

“The plan that they (the government) have to get the pension reform approved is the single most important thing,” she said. “There are other things they need to do but I believe you could see 10 years of growth in Brazil at 3, 4 percent.”

The International Monetary Fund (IMF) lowered its forecasts for global growth last week, citing issues in China, Germany and the U.K.

However, Botin told CNBC that lower global growth could be a positive for banks.

“There is no doubt there will some slowdown in global growth, but I think that’s not bad because it could be a more sustainable growth and that’s actually relatively good for banks,” she said.

“If we have a more sustainable growth, we are going to have margins maybe widening a little bit, with a bit higher rates but not too much — that’s good for our non-performing loans and that’s also good for demand for credit.”

Banco Santander, S.A. (SAN) projected to achieve 2.40% earnings growth for this year

Banco Santander, S.A. (SAN)’s EPS growth Analysis:

Out of the important value indicator of stocks, EPS growth rate is most important. It will depend on the stock, the industry and the interest rates. Some stocks rarely if ever have high EPS, while others seem like they are always high. Some industries have lower average historical EPS than others as well. Also interest rates can affect EPS. EPS stands for earning per share. It is calculated as Net Profit/No. of Shares Outstanding. The term earnings per share (EPS) represents the portion of a company’s earnings, net of taxes and preferred stock dividends, that is allocated to each share of common stock.

Generally, companies with positive EPS are more highly valued than companies with negative EPS, and a novice investor should just stick to companies with long track records of profit making. But that is not to say that companies with negative EPS should be avoided. These stocks are extremely attractive to contrarian/special events/distressed securities investors. But it takes a remarkable amount of expertise and knowledge (don’t forget common sense) to be investing in these companies and being successful. Evaluating stocks to buy and sell can be a tricky business, even with all of the data available at your fingertips.

Banco Santander, S.A. (SAN) predicted to achieve earnings per share (EPS) growth of 2.40% for this year while EPS growth expected to touch 6.00% for next year. The company reported EPS (ttm) of 0.5. Take a view on its long-term annual earnings per share (EPS) growth rate which is suggested by Analyst to reach at 6.90% for next 5 years and looking its past five year record, annual EPS growth rate was 14.30%.

Banco Santander, S.A. (SAN) ticked a yearly performance of -33.23% while year-to-date (YTD) performance stood at 11.16%. The stock price moved with change of -0.99% to its 50 Day low point and changed 18.29% comparing to its 50 Day high point. SAN stock is currently showing positive return of 0.20% throughout last week and witnessed increasing return of 12.42% in one month period. The stock price increased 10.67% in three months and dipped -9.53% for the last six months trading period.

The recent session unveiled a 18.29% positive lead over its 52-week stock price low and showed down move of -33.49% over its 52-week high stock price. The stock price volatility remained at 1.66% in recent month and reaches at 1.26% for the week. The Average True Range (ATR) is also a measure of volatility is currently sitting at 0.1.

Analysis of Simple Moving Average:

Chart patterns can be difficult to read given the volatility in price movements. Moving averages can help smooth out these erratic movements by removing day-to-day fluctuations and make trends easier to spot. Since they take the average of past price movements, moving averages are better for accurately reading past price movements rather than predicting future past movements.

The most common type of moving average is the simple moving average, which simply takes the sum of all of the past closing prices over a time period and divides the result by the total number of prices used in the calculation.

Moving averages are a powerful tool for traders analyzing securities. They provide a quick glimpse at the prevailing trend and trend strength, as well as specific trading signals for reversals or breakouts. The most common timeframes used when creating moving averages are the 200, 50 and 20-day moving averages. The 200-day moving average is a good measure for a year timeframe, while shorter moving averages are used for shorter timeframes. These moving averages help traders smooth out some of the noise found in day-to-day price movements and give them a clearer picture of the trend.

Banco Santander, S.A. (SAN) stock price performed at a change of 4.19% from 20 day SMA and stands at a distance of 6.11% away from 50 day SMA. At present time the stock is moving -5.15% away to its 200-day moving average.

Short Ratio of stock is 0.79. Banco Santander, S.A. is a part of Financial sector and belongs to Foreign Money Center Banks industry. Banco Santander, S.A. (SAN) finalized the Monday at price of $4.98 after traded 5820184 shares. The average volume was noted at 8290.64K shares while its relative volume was seen at 0.69. Volume is an important technical analysis tool to learn and understand how to apply to price movements. Volume increases every time a buyer and seller transact their stock or futures contract. If a buyer buys one share of stock from a seller, then that one share is added to the total volume of that particular stock. Volume has two major premises:

When prices rise or fall, an increase in volume acts as confirmation that the rise or fall in price is real and that the price movement had strength. When prices rise or fall and there is a decrease in volume, then this might be interpreted as being a weak price move, because the price move had very little strength and interest from traders.

Banco Santander, S.A. (SAN) reported fall change of -0.80% in last trading session. It is a positive indicator for investor portfolio value — when the price of a stock Investor owns goes up in value. On the other side it is not a negative indicator for Investor portfolio value — when the price of a stock Investor owns moves down in value.

In the liquidity ratio analysis; Total Debt/Equity ratio was 2.46. The return on assets ratio of the Company was 0.50% while its return on investment ratio was 6.80%. Price to sales ratio was 1.31 while Price to sales book ratio stands at 0.81. 1.80% shares of the company were owned by Institutional investors and Insider investors hold stake of 21.00%.

Published at Wed, 30 Jan 2019 06:18:00 +0000