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Investment Platform Analysis: Santander

By James Fox

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Banco Santander is a Spanish multinational financial services company headquartered in Madrid. It ranks among the world's largest banks, with operations spanning Europe, North and South America, and Asia. Its presence in the UK was expanded in the 2000s with the strategic acquisition of Abbey National, Alliance & Leicester, and parts of Bradford & Bingley.

The group focuses on retail and corporate banking, wealth management, and digital payment solutions. Santander offers a range of investment products and ISAs in the UK. Its investment services include a variety of funds and investment options through the Santander Investment Hub, which provides access to over 850 funds.

Is your money safe with Santander?

As a major and profitable financial institution, Santander potentially offers investors an additional level of security to some smaller independent brokerages. Over 250,000 people trust Santander with their money, with more than £6.4 billion invested through them in the UK. Santander's strong market position, regulatory compliance, and global financial stability provide reassurance to investors.

Director/Major shareholders – buying & selling

The below shows the number of insider transactions over the past six months as recorded by TipRanks. The majority of these transactions appear to be share purchases, which suggests a degree of confidence in the company’s direction and the stock’s valuation.

  • Jose Antonio Garcia – Divisional Senior Executive Vice-President
    Informative Sell – 1,313 shares
  • Mahesh Chatta Aditya – Divisional Senior Executive Vice-President
    Uninformative Buy, Grant/Award/Other Acquisition – 5,098 shares
  • Ana Patricia Botin-Sanz De Sautuola O´Shea – Chairman
    Informative Buy –  345,248 shares
  • Hector Blas Grisi Checa – Chief Executive Officer
    Uninformative Buy, Grant/Award/Other Acquisition – 182,172 shares
  • Daniel Barriuso – Chief Transformation Officer
    Uninformative Buy, Grant/Award/Other Acquisition – 52,468 shares
  • Mahesh Chatta Aditya – Divisional Senior Executive Vice-President
    Uninformative Buy, Grant/Award/Other Acquisition – 6,780 shares
  • Dirk Marzluf – Senior Executive Vice-President
    Uninformative Buy, Grant/Award/Other – 224,345 shares
  • Monica Lopez Mon – Divisional Senior Executive Vice-President
    Uninformative Buy, Grant/Award/Other – 57,870 shares
  • Jose Francisco Don – Senior Executive Vice-President
    Uninformative Buy, Grant/Award/Other – 111,984 shares
  • Jose Luis De Mora – Divisional Senior Executive Vice-President
    Uninformative Buy, Grant/Award/Other Acquisition – 78,626 shares

Assets Under Supervision vs previous year and quarter vs consensus estimates

Banco Santander's Assets Under Supervision (AUS) typically refers to the total value of assets that the bank oversees, including those managed by its asset management division, private banking, and insurance businesses. At the end of the financial year 2023, the group had €210 billion of assets under supervision (AUS) making it one of the largest financial institutions in Europe.

According to Santander, more than £6.4 billion is invested through its Investment Hub platform as of July 2022.

Customer metrics

Number of users vs previous year and quarter.
Santander doesn’t provide quarterly updates for the number of customers using its investment and ISA platforms. However, it claims that over 250,000 people in the UK were investing through the Investment Hub platform as of July 2022.

Financial Metrics

Revenue vs previous year vs consensus estimates.

Revenue generation has increased to $129.2 billion in 2023, partially driven by higher interest rates, but also improving economic conditions versus the pandemic era. Revenue jumped 44% in 2022, marking a considerable improvement.

Earnings per share (EPS) vs previous year vs consensus estimates.

Earnings Per Share (EPS) has surged in recent years with higher interest rates driving earnings across the business. EPS is expected to rise further in 2024 according to data from FactSet.

Return on equity vs previous year and quarter vs consensus estimates

Return on Equity (RoE) is a standard measure of profitability when assessing bank stocks. According to data from FactSet, RoE improved from negative territory during the pandemic to 12.1% in 2023.

Return on Risk Weighted Assets vs previous year and quarter vs consensus estimates

Return on Risk-Weighted Assets (RWA) is a financial metric used primarily in the banking industry to measure a bank's profitability relative to its risk-adjusted assets. This ratio provides insight into how efficiently a bank is using its capital to generate profits while accounting for the riskiness of its assets. The data shows that the bank’s return on RWA has improved in recent years.

Analysts’ price targets and ratings including commentary.

Based on 17 analysts offering 12-month price targets for Banco Santander in the last 3 months, the average price target is €5.56 with a high forecast of €6.30 and a low forecast of €4.80.

FAQs

The next set of quarterly results is expected in October 2024.

The Full Year Results Announcement is due in late January or early February 2025.

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