Latest news with #SantanderPolska
Yahoo
13-05-2025
- Business
- Yahoo
SAN's Business Restructuring Initiatives Driving Growth: Time to Buy?
One of the largest Spanish lenders, Banco Santander, S.A. SAN, is undertaking several steps to streamline operations and pivot toward high-growth markets in Europe and the Americas. In sync with this, on May 5, the company announced the sale of approximately 49% stake in its Polish banking business, Santander Bank Polska S.A., to Austrian bank Erste Group for €6.8 billion ($7.7 billion).In addition, Erste Group will acquire 50% of Santander Polska's asset management business (TFI), which is not currently owned by the bank, for €0.2 billion. This brings the total consideration to €7 billion. The transaction, expected to close by the year-end, is projected to result in a €2 billion net capital gain for SAN. Following the completion, Banco Santander will retain around 13% of Santander Polska and intends to fully acquire Santander Consumer Bank Polska by purchasing the remaining 60% stake from Santander Polska before closure, SAN will temporarily operate with a CET1 ratio above its 12–13% target, with plans to return to this range by strategically deploying capital to drive profitable organic growth and investments that enhance earnings, returns and shareholder value. The bank will distribute 50% of the capital released—around €3.2 billion—via share buybacks, accelerating progress toward its €10 billion buyback target for 2025–2026. Further, the transaction is expected to be accretive to SAN's earnings by 2027-2028, with re-deployed capital supporting further growth through share buybacks, organic expansion and strategic acquisitions. This will enhance its flexibility to invest across existing markets in Europe and the Americas. Financial Impact of the Transaction Image Source: Banco Santander, S.A. Since the announcement of the above-mentioned transaction, shares of Banco Santander have risen 3.6% on the NYSE. Expansion of Digital Bank: Per a recent filing with the Office of the Comptroller of the Currency, Banco Santander plans to close approximately 20 U.S. branches—around 5% of its U.S. retail network—by August, as part of its strategy to streamline operations and respond to the growing shift toward digital banking. This move aligns with the rapid growth of its U.S.-based digital platform, Openbank, which has already surpassed $2 billion in deposits since its launch in October 2024. Originally relaunched in 2017, Openbank has grown to become Europe's largest fully digital bank by deposit volume, operating across Spain, Germany, Portugal, the Netherlands, the United States and Mexico. Representing SAN's broader commitment to innovation, Openbank leverages advanced technologies such as AI-powered financial tools and a Roboadvisor platform, offering customers a seamless and intelligent approach to saving and Transformation Program: Launched in 2014, the One Transformation program focuses on digital transformation, operational efficiency and customer experience. As such, SAN created a common operating and business model for Retail and Commercial Banking segments, which continues to boost productivity, cut service costs and empower it to improve customer by the One Transformation program, Banco Santander kicked off 2025 in a strong fashion, with its first-quarter 2025 net profit of €3.4 billion marking a fourth straight quarterly record. The company posted 19% year-over-year growth in net profit on revenues of €15.5 billion, which rose 5% in constant currency terms. One Transformation Execution Image Source: Banco Santander, S.A. Additionally, SAN is on track to achieve its 2025 targets, including almost €62 billion of revenue and mid-high single-digit growth in net fee income in constant euros. 2025 Targets Image Source: Banco Santander, S.A. The Zacks Consensus Estimate for Banco Santander's 2025 revenues suggests a 3.6% decline on a year-over-year basis because of a challenging operating backdrop. On the other hand, 2026 revenues are expected to grow 3.4%. Further, the consensus estimate for earnings indicates a 12.1% and 12.2% increase for 2025 and 2026, respectively. Earnings estimates for both years have been revised upward over the past 30 days. SAN's Earnings Trend Image Source: Zacks Investment Research Banco Santander's shares have performed extremely well on the bourses this year. The stock has soared 62.3% so far this year compared with the industry's rally of 16.1%. Also, it has outperformed its peers, Barclays BCS and HSBC Holdings HSBC, in the same time frame. SAN YTD Price Performance Image Source: Zacks Investment Research Now, let's take a look at the value SAN offers investors at current present, Banco Santander is trading at 1.25X 12-month trailing price/tangible book (P/TB), below its five-year median of 0.71X. Meanwhile, the industry has P/TB TTM of 2.18X. Hence, the stock looks inexpensive compared with the industry average. SAN P/TB TTM Image Source: Zacks Investment Research Further, Barclays has a P/TB TTM of 0.70X and HSBC's P/TB TTM is 1.02X. So, Banco Santander is trading at a premium compared with Barclays and HSBC. SAN's efforts to restructure its business to improve operating efficiency through the One Transformation program and digital expansion plan are projected to drive growth. Yet, a tough operating backdrop because of global macroeconomic headwinds and not-so-impressive loan demand is likely to act as a spoilsport to some extent. Nonetheless, bullish analyst sentiments and inexpensive valuation make Banco Santander stock a lucrative bet for SAN carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Barclays PLC (BCS) : Free Stock Analysis Report Banco Santander, S.A. (SAN) : Free Stock Analysis Report HSBC Holdings plc (HSBC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
12-05-2025
- Business
- Yahoo
Santander turns down NatWest's offer for UK retail banking arm
Banco Santander has reportedly turned down a bid from NatWest for its UK retail banking operations, saying it considered the offer too low. The proposal, which was advised by Morgan Stanley and UBS, is no longer active, according to sources privy to the development, reported Financial Times. The offer made by NatWest was reported to be above £10bn ($13.2bn) but below £12bn ($15.9bn). Santander's UK subsidiary, which encompasses both retail and commercial banking, reported total equity of £10.4bn ($13.8bn) at the end of the previous year. In contrast, the valuation for the Polish unit sale was approximately 2.2 times its tangible book value, indicating a higher valuation than that of the overall group. Santander has also previously rejected a lower offer for its UK ringfenced unit from Barclays. The bid from NatWest, which would have marked the largest banking transaction in the UK since the financial crisis, comes as the state-backed lender prepares to enhance its domestic market presence. This expansion is anticipated to occur once the UK government finalises the sale of its remaining £46bn ($61.1bn) stake in NatWest, expected in the near future. Jose Garcia Cantera, Santander's chief financial officer, stated last month, 'We want to be a relevant bank in the US.' Recently, Santander agreed to divest approximately 49% of its shares in Santander Polska, its Polish banking unit, to Austrian bank Erste Group for €6.8bn ($7.7bn). Additionally, Erste will purchase the remaining 50% of Santander Polska's asset management business (TFI) for €0.2bn, resulting in a total all-cash transaction value of €7bn ($7.9bn). "Santander turns down NatWest's offer for UK retail banking arm" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
06-05-2025
- Business
- Yahoo
Santander to offload 49% stake in Polish business to Erste for €7bn
Banco Santander has agreed to sell about 49% of its shares in its Polish banking business, Santander Polska, to Austrian bank Erste Group for €6.8bn($7.7bn). In addition, Erste will acquire 50% of Santander Polska's asset management business (TFI) not currently owned by the bank for €0.2bn, bringing the total value of the all-cash transaction to €7bn($7.9m). The transaction is expected to close by the end of 2025, contingent upon customary conditions and regulatory approval. Santander will retain around 13% of Santander Polska and plans to fully acquire Santander Consumer Bank Polska by purchasing the remaining 60% stake from Santander Polska before closing. The agreed transaction price is 584 zlotys per share, representing a 7.5% premium to Santander Polska's 2 May 2025 closing price. Erste will fund the all-cash purchase entirely with "internal resources", by cancelling its planned €700m share buyback and temporarily reducing its dividend payments. Santander expects to make a €2bn net capital gain from the sale. Alongside the equity transaction, Santander and Erste have agreed to enter a strategic cooperation covering Corporate & Investment Banking (CIB) and payment services. The collaboration will include a referral-based model allowing the institutions to leverage their respective regional strengths, offering localised solutions and market insights to corporate and institutional clients. Santander will also provide Erste's clients with access to its global CIB platforms across the UK, Europe, and the Americas. In the area of payments, the two banks intend to explore opportunities for Erste to utilise Santander's payment infrastructure, including services offered by Santander's PagoNxt platform, with the potential to expand access to Santander Polska post-transaction. Following the transaction, Banco Santander aims to return part of the capital to shareholders. It intends to distribute approximately €3.2bn via share buybacks, equivalent to 50% of the capital released. This would contribute to the group's broader buyback goal of up to €10bn from 2025 and 2026 earnings and surplus capital, with the possibility of exceeding that target depending on market conditions and regulatory approval. The bank anticipates the deal will be earnings per share accretive by 2027–2028, through a combination of organic growth, share repurchases, and selective acquisitions aligned with its strategic and return criteria. Banco Santander executive chair Ana Botín stated: "This transaction is another key step in our strategic focus on shareholder value creation which is based on both accelerating our platform strategy through ONE Transformation and growing the group's scale in geographies with highly connected markets.
