Global Value Investing

[Drexion2004]

Santander is not trading below book. Its Brazillian stock symbol is SANB11.sa and is at $15.56 while book is $13.31. I think you were looking at the American ADR and got confused about book? Might want to recheck that dividend % too ;).

I looked at it before and Banco Do Brazil looked alot better for a number of reasons to me.

1) SANB11 only has 14% ROE. It has historically had much lower ROE than Banco Do Brazil.
2) Lower overall loan growth than Banco Do Brazil.
3) Out of total loans, 199.3B, a MUCH larger percentage (roughly double) is in Auto Loans and Credit Card loans than for Banco Do Brazil. I am not a fan of those segments, specially Auto Loans in Brazil.
4) Santander NPL percentages are significantly higher than for Banco Do Brazil. Off memory its like 4% BBAS3 to 7.5% for Santander.

-Fernando