Banco Santander, S.A.
Santander Group City
Avenida De Cantabria s/n
Madrid, 28660
Spain - Map
Phone: 34 90 211 22 11
Website: http://www.santander.com

Part of the fall in this stock has also been the selling off of ETF's of Latin America as well as the Bovespa. That does not mean all the stocks should falling as they are all not equal! M

What Recent Earnings Mean for This Bank Stock
By Alex Bastardas - May 13, 2013 | Tickers: BBVA, SAN, DB | 0 Comments
Share on emailEmailShare on printPrintAlex is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.


Finding a value stock in today's bullish market is not an easy task. Many analysts agree that, while there might be cheap individual stocks out there, there are very few sectors that are deeply undervalued as a whole. One exception would be European banks.

One of the leading Euro banks, the Spanish banking giant Banco Santander (NYSE: SAN), recently reported its Q1 2013 earnings. What do they mean for the bank? Should investors buy Santander? Or would it be better to wait for a more upbeat report?

Compared to the same quarter last year, the bank's earnings were down 26% to €1.2 billion. Due to worldwide economic conditions and rock-bottom interest rates, the bank's income fell 9% to €10.3 billion while costs fell only 1% to €4.9 billion.

By region, the bank derived 55% of its profit from its operations in emerging markets, Brazil being the biggest contributor (26% of total earnings), followed by Mexico's 13%. The other 45% came from more mature markets, mostly the United States (12%) and the United Kingdom (12%).

Despite being headquartered in Spain, operations in that country only represent 11% of the company's total earnings. Compared to Q1 2012, profit in Brazil dropped 22.3%, 18% in Mexico, 34.3% in Portugal, and 21% in Chile. The drop has been much softer (only 2.4%) in the United States. All in all, the report seems quite gloomy, and, understandably so, the stock has had a slight price drop.

However, if one compares Q1 2013 with Q4 2012 results, a different reading emerges. Q1 2013 results are actually three times better than that of the previous quarter. Specifically, in the fourth quarter, attributable profit was only €423 million (or €1.2 billion before non-recurring provisions).

Furthermore, the comparison with last year's Q1 can be misleading: The bank's president, Emilio Botín, pointed out that Q1 2012 was an exceptional quarter that accounted for a large percentage of the bank's earnings last year. He stated that while earnings in 2012 went from high to low (Q1 being the most profitable, Q4 the least), earnings in 2013 are expected to go from low to high. This could mean that earnings in 2013 will be much stronger than those in 2012. The numbers seem to back up this assertion: Q1 2013 earnings are already equal to 53% of the bank's 2012 total profit.

Bears will correctly point out that the recent earnings report shows that, for the first time, the bank's earnings are weak not due to regulatory requirements, but due to a decrease in income and margins. While income should start to pick up again as the world economy recovers (income by region is already better than the previous quarter), cost is slightly more worrying.

However, as company officials rightly point out, the cost-reducing effects of the bank's fusions in Spain and Poland have not yet been registered in Q1, but are likely to show up in the following quarters. Bank fusions in many countries will also help the bank, as there will be fewer names, and leading banks like Santander will be able to attract more depositors. In fact, even compared to Q1 2012, the bank has managed to increase its client base and deposits by almost 2%.

Valuation & competitors

So, after the earnings report, should investors buy, hold, or sell this stock? As stated earlier, the bank's earnings were actually better than those of the previous quarter, so theoretically valuation ratios are now even more attractive than they were before earnings came out. The bank is trading at a P/E of 25, which is above average, but when taking into account future earning estimates, the forward P/E is an attractive 9.29. Its P/B ratio is also low: only 0.77. Its PEG is a bit higher, at 1.20.

Compared to its direct competitor, Banco Bilbao Vizcaya Argentaria (NYSE: BBVA), which also recently reported earnings, or to Euro giant Deutsche Bank (NYSE: DB), Santander still has an edge on most valuation ratios:

P/E Fw P/E P/B PEG Dividend Yield
Santander 25 9.29 0.77 1.20 11%
BBVA 29.70 8.60 0.99 4.24 5.56%
Deutsche Bank 184.20 - 0.61 22.18 1.42%
Edge SAN BBVA DB SAN SAN
BBVA is also slightly less globally diversified than Santander, and as a result, might struggle more than its main competitor. However, it has not expanded as fast as Santander has, so its more conservative management style might be beneficial for the bank if tumultuous conditions continue.

With regards to Deutsche Bank, the German giant is still attractive with regards to book value, and, as most European banks, its stock should recover nicely. However, Deutsche Bank has had significant exposure to Greek sovereign debt, while Santander managed to stay away from it. At any rate, the prices of most European bank stocks -- especially Spanish -- are at historically low levels and should come up as bad news from Europe subsides.

Dividend

Except for the current price-to-earnings ratio, valuations are still low, and the dividend yield is still high, very high. The Bank has stated that it will maintain its €0.60/share dividend for 2013. For its ADR shareholders, that works out to a yearly yield of around 11%. The yield is clearly above average in the industry, especially when taking into account that this is a major worldwide bank with a solid dividend-paying record, not a speculative small-cap financial stock.

Bottom line

While the headlines surrounding the earnings report can be negative, especially when comparing them to those of the same quarter last year, Banco Santander remains a very attractive stock to own. Its has been so severely beaten down over the last few years, that valuation ratios and dividend yields are too attractive to ignore. The bank's global diversification and smart growth strategy, coupled with a worldwide improvement of economic conditions, should drive up earnings this year.

The worst days of both the financial crisis and the Spanish debt crisis should now be behind us, and the stock has a long way to climb. Both dividend-seeking and value investors should seriously consider buying this stock before the big institutional investors regain confidence and start driving up the stock price.

Argentina will now pay their fair share:

http://portal.metrocast.net/news/read.php?id=19297581&ps=1014&srce=news_class&action=2&lang=en&_LT=UNLC_BUNWU00L2_UNEWS

What pull back... Might run to 7 this Thursday. After the conference..

Might be a slight pullback here.


http://www.marketwatch.com/story/santander-profit-sinks-93-on-property-provisions-2012-07-26?siteid=yhoof2

~ $SAN ~Multi chart fix and On the house shots of DD!! Version 3.2.3







~ Barchart: http://barchart.com/quotes/stocks/SAN?
~ OTC Markets: http://www.otcmarkets.com/stock/SAN/company-info
~ Google Finance: http://www.google.com/finance?q=SAN
~ Google Fin Options: hhttp://www.google.com/finance/option_chain?q=SAN#
~ Yahoo! Finance ~ Stats: http://finance.yahoo.com/q/ks?s=SAN+Key+Statistics
~ Yahoo! Finance ~ Profile: http://finance.yahoo.com/q/pr?s=SAN
Finviz: http://finviz.com/quote.ashx?t=SAN
~ BusyStock: http://busystock.com/i.php?s=SAN&v=2
~ CandlestickChart: http://www.candlestickchart.com/cgi/chart.cgi?symbol=SAN&exchange=US
~ Investorshub Trades: http://ih.advfn.com/p.php?pid=trades&symbol=SAN
~ Investorshub Board Search: http://investorshub.advfn.com/boards/getboards.aspx?searchstr=SAN
~ Investorshub PostStream Search: http://investorshub.advfn.com/boards/poststream.aspx?ticker=SAN
~ Investorshub Goodies Search: http://investorshub.advfn.com/boards/msgsearchbyboard.aspx?boardID=23418&srchyr=2011&SearchStr=SAN
~ Investorshub Message Search: http://investorshub.advfn.com/boards/msgsearch.aspx?SearchStr=SAN
~ MarketWatch: http://www.marketwatch.com/investing/stock/SAN/profile
~ E-Zone Chart: http://www.windchart.com/ezone/signals/?symbol=SAN
~ 5-Min Wind: http://www.windchart.com/stockta/analysis?symbol=SAN
~ 10-Min Wind: http://www.windchart.com/stockta/analysis?symbol=SAN&size=l&frequency=10&color=g
~ 30-Min Wind: http://www.windchart.com/stockta/analysis?symbol=SAN&size=l&frequency=30&color=g
~ 60-Min Wind: http://www.windchart.com/stockta/analysis?symbol=SAN&size=l&frequency=60&color=g

DTCC (PENSON/TDA) Check - (otc and pinks) - Note ~ I did not check for this chart blast. However, I try and help you to do so with the following links.
IHUB DTCC BOARD SEARCH #1 http://investorshub.advfn.com/boards/msgsearchbyboard.aspx?boardID=18682&srchyr=2011&SearchStr=SAN
IHUB DTCC BOARD SEARCH #2: http://investorshub.advfn.com/boards/msgsearchbyboard.aspx?boardID=14482&srchyr=2011&SearchStr=SAN
Check those searches for recent SAN mentions. If SAN is showing up on older posts and not on new posts found in link below, The DTCC issues may have been addressed and fixed. Always call the broker if your security turns up on any DTCC/PENSON list.
http://investorshub.advfn.com/boards/msgsearchbyboard.aspx?boardID=18682&srchyr=2011&SearchStr=Complete+list
For a cSANnt list see the pinned threads at the top here ---> http://tinyurl.com/TWO-OLD-FARTS


Volume, MACD, ADX 3 EMA Par sar - http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=True&insttype=Stock&symb=SAN&time=8&startdate=1%2F4%2F1999&enddate=11%2F21%2F2011&freq=2&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=6&maval=9&uf=16&lf=1&lf2=4&lf3=1024&type=4&style=380&size=2&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11&x=25&y=5
RSI, Money Flow, Volume Accumulation, 3sma, Bollinger bands - http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=True&insttype=Stock&symb=SAN&time=8&startdate=1%2F4%2F1999&enddate=11%2F21%2F2011&freq=2&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=4&maval=9&uf=8&lf=2&lf2=512&lf3=4096&type=4&style=380&size=2&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11&x=36&y=14
Price Channel, Momentum, Volatility Slow, P/E Ratio - http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=True&insttype=Stock&symb=SAN&time=8&startdate=1%2F4%2F1999&enddate=11%2F21%2F2011&freq=2&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=6&maval=9&uf=128&lf=65536&lf2=16384&lf3=16777216&type=4&style=380&size=2&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11&x=28&y=15



Volume, MACD, ADX 3 EMA Par sar - http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=True&insttype=Stock&symb=SAN&time=6&startdate=1%2F4%2F1999&enddate=11%2F21%2F2011&freq=1&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=6&maval=9&uf=16&lf=1&lf2=4&lf3=1024&type=4&style=380&size=2&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11&x=39&y=17
RSI, Money Flow, Volume Accumulation, 3sma, Bollinger bands - http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=True&insttype=Stock&symb=SAN&time=6&startdate=1%2F4%2F1999&enddate=11%2F21%2F2011&freq=1&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=4&maval=9&uf=8&lf=2&lf2=512&lf3=4096&type=4&style=380&size=2&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11&x=35&y=12
Price Channel, Momentum, Volatility Slow, P/E Ratio - http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=True&insttype=Stock&symb=SAN&time=6&startdate=1%2F4%2F1999&enddate=11%2F21%2F2011&freq=1&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=6&maval=9&uf=128&lf=65536&lf2=16384&lf3=16777216&type=4&style=380&size=2&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11&x=23&y=19



Volume, MACD, ADX 3 EMA Par sar - http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=True&insttype=Stock&symb=SAN&time=18&startdate=1%2F4%2F1999&enddate=11%2F21%2F2011&freq=8&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=6&maval=9&uf=16&lf=1&lf2=4&lf3=1024&type=4&style=380&size=2&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11&x=38&y=6
RSI, Money Flow, Volume Accumulation, 3sma, Bollinger bands - http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=True&insttype=Stock&symb=SAN&time=18&startdate=1%2F4%2F1999&enddate=11%2F21%2F2011&freq=8&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=4&maval=9&uf=8&lf=2&lf2=512&lf3=4096&type=4&style=380&size=2&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11&x=30&y=11
Price Channel, Momentum, Volatility Slow, P/E Ratio - http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=True&insttype=&symb=SAN&time=18&startdate=1%2F4%2F1999&enddate=11%2F21%2F2011&freq=8&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=6&maval=9&uf=128&lf=65536&lf2=16384&lf3=16777216&type=4&style=380&size=2&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11&x=35&y=14



Volume, MACD, ADX 3 EMA Par sar - http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=True&insttype=Stock&symb=SAN&time=3&startdate=1%2F4%2F1999&enddate=11%2F21%2F2011&freq=7&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=6&maval=9&uf=16&lf=1&lf2=4&lf3=1024&type=4&style=380&size=2&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11&x=39&y=14
RSI, Money Flow, Volume Accumulation, 3sma, Bollinger bands - http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=True&insttype=Stock&symb=SAN&time=3&startdate=1%2F4%2F1999&enddate=11%2F21%2F2011&freq=7&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=4&maval=9&uf=8&lf=2&lf2=512&lf3=4096&type=4&style=380&size=2&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11&x=20&y=16
Price Channel, Momentum, Volatility Slow, P/E Ratio - http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=True&insttype=Stock&symb=SAN&time=3&startdate=1%2F4%2F1999&enddate=11%2F21%2F2011&freq=7&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=6&maval=9&uf=128&lf=65536&lf2=16384&lf3=16777216&type=4&style=380&size=2&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11&x=46&y=6



Volume, MACD, ADX 3 EMA Par sar - http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=True&insttype=Stock&symb=SAN&time=1&startdate=1%2F4%2F1999&enddate=11%2F21%2F2011&freq=6&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=6&maval=9&uf=16&lf=1&lf2=4&lf3=1024&type=4&style=380&size=2&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11&x=42&y=20
RSI, Money Flow, Volume Accumulation, 3sma, Bollinger bands - http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=True&insttype=Stock&symb=SAN&time=1&startdate=1%2F4%2F1999&enddate=11%2F21%2F2011&freq=6&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=4&maval=9&uf=8&lf=2&lf2=512&lf3=4096&type=4&style=380&size=2&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11&x=36&y=11
Price Channel, Momentum, Volatility Slow, P/E Ratio - http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=True&insttype=Stock&symb=SAN&time=1&startdate=1%2F4%2F1999&enddate=11%2F21%2F2011&freq=6&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=6&maval=9&uf=128&lf=65536&lf2=16384&lf3=16777216&type=4&style=380&size=2&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11&x=46&y=11



Volume, MACD, ADX 3 EMA Par sar - http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=True&insttype=Stock&symb=SAN&time=1&startdate=1%2F4%2F1999&enddate=11%2F21%2F2011&freq=9&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=6&maval=9&uf=16&lf=1&lf2=4&lf3=1024&type=4&style=380&size=2&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11&x=31&y=14
RSI, Money Flow, Volume Accumulation, 3sma, Bollinger bands - http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=True&insttype=Stock&symb=SAN&time=1&startdate=1%2F4%2F1999&enddate=11%2F21%2F2011&freq=9&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=4&maval=9&uf=8&lf=2&lf2=512&lf3=4096&type=4&style=380&size=2&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11&x=23&y=15
Price Channel, Momentum, Volatility Slow, P/E Ratio - http://bigcharts.marketwatch.com/advchart/frames/frames.asp?show=True&insttype=Stock&symb=SAN&time=1&startdate=1%2F4%2F1999&enddate=11%2F21%2F2011&freq=9&compidx=aaaaa%3A0&comptemptext=&comp=none&ma=6&maval=9&uf=128&lf=65536&lf2=16384&lf3=16777216&type=4&style=380&size=2&timeFrameToggle=false&compareToToggle=false&indicatorsToggle=false&chartStyleToggle=false&state=11&x=22&y=15



























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* If a symbol changes or adds a D, etc. Message me for an updated version.
Twitter: @MACDgyver ---> SAN <---

~ $SAN ~ Earnings posted, pending or coming soon! In Charts and Links Below!

~ $SAN ~ Earnings expected on Friday *
This Week In Earnings: Earnings are coming or are already posted! This is what the charts look like! If you play the earnings these posts can be very helpful to you!
Want more like this? Search Keyword: MACMONEY >>> http://tinyurl.com/MACMONEY <<<
One or more of many earnings sites has alerted this security has or will be posting earnings on or around the day of this message.








http://stockcharts.com/h-sc/ui?s=SAN&p=D&b=3&g=0&id=p88783918276&a=237480049




http://stockcharts.com/h-sc/ui?s=SAN&p=W&b=3&g=0&id=p54550695994



~ Barchart: http://barchart.com/quotes/stocks/SAN?
~ OTC Markets: http://www.otcmarkets.com/stock/SAN/company-info
~ Google Finance: http://www.google.com/finance?q=SAN
~ Google Fin Options: hhttp://www.google.com/finance/option_chain?q=SAN#
~ Yahoo! Finance ~ Stats: http://finance.yahoo.com/q/ks?s=SAN+Key+Statistics
~ Yahoo! Finance ~ Profile: http://finance.yahoo.com/q/pr?s=SAN
Finviz: http://finviz.com/quote.ashx?t=SAN
~ BusyStock: http://busystock.com/i.php?s=SAN&v=2
~ CandlestickChart: http://www.candlestickchart.com/cgi/chart.cgi?symbol=SAN&exchange=US
~ Investorshub Trades: http://ih.advfn.com/p.php?pid=trades&symbol=SAN
~ Investorshub Board Search: http://investorshub.advfn.com/boards/getboards.aspx?searchstr=SAN
~ Investorshub PostStream Search: http://investorshub.advfn.com/boards/poststream.aspx?ticker=SAN
~ Investorshub Goodies Search: http://investorshub.advfn.com/boards/msgsearchbyboard.aspx?boardID=18582&srchyr=2011&SearchStr=SAN
~ Investorshub Message Search: http://investorshub.advfn.com/boards/msgsearch.aspx?SearchStr=SAN
~ MarketWatch: http://www.marketwatch.com/investing/stock/SAN/profile
~ E-Zone Chart: http://www.windchart.com/ezone/signals/?symbol=SAN
~ 5-Min Wind: http://www.windchart.com/stockta/analysis?symbol=SAN
~ 10-Min Wind: http://www.windchart.com/stockta/analysis?symbol=SAN&size=l&frequency=10&color=g
~ 30-Min Wind: http://www.windchart.com/stockta/analysis?symbol=SAN&size=l&frequency=30&color=g
~ 60-Min Wind: http://www.windchart.com/stockta/analysis?symbol=SAN&size=l&frequency=60&color=g


http://investorshub.advfn.com/boards/post_prvt.aspx?user=251916

*If the earnings date is in error please ignore error. I do my best.