Latest news with #Sabadell
Reuters
a day ago
- Business
- Reuters
Spain's BBVA says expects acceptance period for Sabadell bid to start in September
MADRID, July 21 (Reuters) - Spain's BBVA ( opens new tab expects the acceptance period for its takeover bid for smaller rival Sabadell ( opens new tab to start in early September, rather than at the end of July as initially planned, a spokesperson for BBVA said on Monday. The spokesperson for BBVA said this would allow the bank to include the most up-to-date information in its takeover prospectus such as the outcome of Sabadell's extraordinary meetings on August 6. Sabadell shareholders are summoned to vote on the agreed sale of its British unit TSB to Santander ( opens new tab and also on the extraordinary 2.5 billion euros ($2.92 billion) cash dividend it plans to distribute among shareholders thanks to the proceeds of the divestment. The decision to dispose of TSB offers Sabadell a potential defensive play as it seeks to stop BBVA's over 13 billion euro takeover approach, aimed at creating Spain's second-biggest bank by credit volume after Caixabank ( opens new tab. A spokesperson for the Spanish stock market supervisor said that it considered as "adequate the proposal put forward by BBVA so that shareholders of Sabadell can have all the information" before deciding whether to tender their shares. In Spain, legislation requires the governing bodies of a company targeted in a takeover bid to request shareholder approval before promoting or taking any action that might prevent an acquisition from succeeding. BBVA decided to proceed with the Sabadell bid despite the Spanish government blocking it from fully merging with its smaller rival for at least three years as one of the conditions imposed on the planned transaction. The takeover prospectus is expected to be approved before the acceptance period, spokespeople for BBVA and the CNMV said. ($1 = 0.8555 euros)
Yahoo
3 days ago
- Business
- Yahoo
£10,000 invested in Santander shares 5 years ago is now worth…
It has been a fantastic five years for Banco Santander (LSE:BNC) shareholders. The Spanish bank stock is up 216% over this time, turning every £10,000 invested back then into £31,600. On top of that, there has been a steady flow of rising dividends since they resumed in 2021 (payouts were paused during the pandemic). Including those, the five-year total return rises to almost £34,000! Lovely. Solid operational results Santander's net interest income — the profit made from core lending and borrowing activities — has been supercharged by higher interest rates in the UK, US, Europe, and parts of Latin America. In 2024, the bank posted a net profit of €12.57bn, up 14% year on year. The momentum continued in Q1 2025, with profit up 19% to €3.4bn (or 10%, excluding a one-off gain). Strong net interest income in Spain and Mexico offset weaker margins in Brazil and the UK. Return on tangible equity — a key profitability metric — rose to a healthy 15.8%, while capital buffers remained strong with a CET1 ratio of 12.9%. The bank also continued share buybacks, and it remains on track to buy back at least €10bn worth of its own shares in 2025 and 2026. Finally, the company added 9m new customers in the quarter, bringing the total worldwide to a whopping 175m. UK expansion That number will likely increase further, because in July, Santander announced the £2.65bn acquisition of TSB from Sabadell. Once completed, the two banks will serve nearly 28m retail and business customers nationwide. Earnings per share are projected to increase immediately, before adding around 4% by 2028. And the lender expects to generate at least £400m in annual pre-tax cost synergies. The acquisition further strengthens Santander's position in one of its core markets, expanding its customer base and lending capacity across the UK. This acquisition will see Santander become the third-largest bank in the UK by personal current account balances, and number four in the mortgage market. Latin America opportunity One thing I like is Santander's positioning in Latin America, where millions of previously unbanked people are joining the financial system through digital accounts. Yet while demand for credit cards, personal loans, and small business financing has exploded, credit penetration is still relatively low versus developed markets. So there's a long runway for growth ahead, which Santander is well-placed to benefit from. Nevertheless, it's still the case that Latin America remains a volatile region. Currency swings, economic instability, and high inflation can weigh on reported earnings. There's also mounting competition from nimble digital banks like Nubank (Nu Holdings), Mercado Pago (MercadoLibre), and Revolut. So Santander will have to work hard to stay competitive. Should I buy Santander stock? Despite its strong share price run, Santander looks reasonably valued to me. The stock trades at just 8.2 times forward earnings. That said, the dividend yield sits around 3.4%, which is lower than FTSE 100 banks like Lloyds (4.9%) and HSBC (5.5%). I already have HSBC shares in my portfolio for income, as well as fintechs Nu and MercadoLibre for growth in Latin America. I'm not going to add Santander to the mix too. However, the stock is reasonably priced, so investors might want to consider Santander for their own portfolios. The post £10,000 invested in Santander shares 5 years ago is now worth… appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool HSBC Holdings is an advertising partner of Motley Fool Money. Ben McPoland has positions in HSBC Holdings, MercadoLibre, and Nu Holdings. The Motley Fool UK has recommended HSBC Holdings, Lloyds Banking Group Plc, MercadoLibre, and Nu Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Reuters
5 days ago
- Business
- Reuters
EU challenges Spain for hindering BBVA's Sabadell bid
MADRID, July 17 (Reuters) - The European Commission officially challenged the Spanish government on Thursday over its attempts to hinder Spanish bank BBVA's ( opens new tab hostile bid for smaller rival Sabadell ( opens new tab. A letter of formal notice, which opens an infringement procedure, was sent to Madrid after the government last month said BBVA would not be allowed to integrate its operations with Sabadell for at least three years as one of the conditions imposed on the more than 13 billion-euro ($15.05 billion) offer. The letter said that, in the Commission's view, provisions in Spanish banking and competition laws granting the government unrestricted powers to intervene in mergers and acquisitions "impinge on the exclusive competences of the European Central Bank and national supervisors under the EU banking regulations". The Commission's letter, which comes after a warning in May not to hinder the bid, also said that it considered Madrid's broad discretionary powers as unjustified restrictions on the freedom of capital movement. An economy ministry spokesperson said the regulations have been in force for several years and applied on several occasions, and the government intended to explain and clarify any legal or technical differences as part of constructive cooperation with the EU institutions. Spain has now two months to respond and address the shortcomings raised by the Commission. In the absence of a satisfactory response, Brussels may decide to issue a reasoned opinion and urge Spain to comply and could ultimately refer Spain to the Court of Justice of the European Union. Euro zone banking supervisors have called for banking consolidation to strengthen the sector, but deals have been scarce as politicians have sought to preserve jobs and protect home-grown lenders. The Commission also said consolidation was essential for achieving a bloc-wide banking union. BBVA decided to proceed with its bid despite the condition imposed by the government and the deal is now waiting for approval from Spain's stock market supervisor. BBVA and Sabadell declined to comment on the European Commission's move. ($1 = 0.8639 euros)
Wall Street Journal
5 days ago
- Business
- Wall Street Journal
EU Warns Spain Over BBVA-Sabadell Merger Intervention
The European Union began proceedings against Spain over its intervention in banking mergers after the government blocked the legal combination of BBVA BBVA 0.28%increase; green up pointing triangle and Sabadell SAB 0.35%increase; green up pointing triangle for at least three years. The European Commission, the EU's executive arm, said Thursday in a formal notice that Spanish laws that give Madrid authority to intervene in banking acquisitions undermine the exclusive competences of the European Central Bank and national supervisors, and restrict the fundamental EU freedoms of establishment and capital movements.
Free Malaysia Today
03-07-2025
- Business
- Free Malaysia Today
Santander's bet on Britain with TSB deal shows banks' need for scale
RBC has estimated that acquiring TSB will boost Santander's ranking in UK mortgages to fourth from fifth. (EPA Images pic) MADRID : Santander's plan to buy TSB for £2.65 billion (US$3.61 billion) and boost its position in the UK came together only a few weeks ago, after the Spanish bank had been considering a possible exit from Britain, three sources close to the process said. The lender, grappling with years of underperformance at its UK business and a market share that at best had flatlined, had this year been reviewing its two-decade presence in Britain. Instead, two developments coincided to hand Santander a chance to snap up TSB, the British unit of Spanish bank Sabadell, one of the sources close to the process said, speaking on the condition of anonymity. In early May, Santander announced it was selling its Polish bank, raising €6.8 billion (US$8.02 billion) in the process. Then word reached it that Sabadell – which itself is the subject of a takeover offer from Santander rival BBVA – had started receiving offers for TSB, the seventh-biggest British bank by number of branches and a lender that has struggled under Sabadell's control. Advised by Centerview, Robey Warshaw and Deutsche Bank, Santander and its bankers had worked for the past three weeks to put in an offer late on Friday, the source said. Sabadell – working with Goldman Sachs and Morgan Stanley – appeared to keep everyone guessing until a Tuesday board meeting. In the end, Santander beat runner-up Barclays, with the difference between the offers tiny, two sources close to the process said. The deal highlights how rising consolidation in European banking is prompting lenders outside the top tier to realise they need to scale or sell out. Santander and Sabadell declined to comment. Centerview, Barclays, Deutsche Bank, Goldman Sachs and Morgan Stanley also declined to comment. Robey Warshaw did not respond to requests for comment. Acquiring TSB will boost Santander's ranking in UK mortgages to fourth from fifth, RBC estimates. For that, Santander is paying 1.45 times TSB's book value, which analysts said was high but reflected the depth of cost-cutting the Spanish lender believes possible by slashing duplicated back office roles and branches. 'The acquisition of TSB serves to bulk up Santander's UK business significantly and presents material cost extraction opportunities,' said John Cronin, banking analyst at SeaPoint Insights. Cronin said it could be 'the first step in a wider play to drive consolidation within the mainstream lending space – with Santander potentially on the offensive'. British lenders flush with cash from higher interest rates are looking at more deals, notably as upstart challenger banks call time on their struggles to take market share from the biggest players. It mirrors a consolidation process taking place in other European markets, including in Italy, as banks are forced to compete for size because of tighter regulations and massive technology costs. Bankers say the Santander move will also increase pressure on other British lenders wanting to expand through acquisitions, especially as the number of obvious options declines, with Virgin Money, Tesco's bank and now TSB all taken over in the past 18 months. No easy cuts After reports emerged in January that Santander, a sprawling bank operating in 10 core markets, wanted out of Britain, executive chair Ana Botin said publicly that the bank was committed to the UK. While the TSB deal delivers on that promise, the success of the transaction is partly predicated on potentially difficult cost cutting. Santander has said it expects to take out £400 million of costs, about 55% of TSB's cost base. That well exceeds feasible cost synergies of 40% in the UK based on past transactions, analysts at BofA said in a report. The bank said the deal will generate a return on invested capital of over 20% and help lift the UK business' return on equity to 16% from an industry-lagging 11%. Integrating computer systems and migrating customer accounts has proven a tough task in Britain due to a reliance by lenders on often decades-old legacy software. Two of the sources close to the process said Santander would use Gravity, its new IT system, to help with the integration. The Spanish lender's aim to cut costs by slashing branches and jobs may also trigger protests from unions and customers, as well as political scrutiny. Santander will also have to battle to win market share from Lloyds Banking Group and NatWest that dominate more profitable banking services such as mortgages and credit cards, even with the scale it has added by buying TSB.
