0646 GMT - The current market valuations of Santander and Santander Polska provide an opportunity to free up capital that could be reinvested to prop up returns elsewhere, Citi says in a research note after Bloomberg reported that the bank is exploring options to sell its 62% stake in its Polish operations. Santander Polska's shares trade at an around 60% premium to book value, while the wider Santander group trades at a 14% premium, analysts Marta Sanchez Romero and Anand Demble write. "The Polish banking market remains highly competitive and Santander (third largest bank in the country) has been losing market share in deposits over the past few years," they say. Making better use of parts of its operations could help the Spanish lender improve its valuation, they add. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

0659 GMT - Santander's strategy review seems to be gathering momentum, Citi says in a research note after Bloomberg reported that the Spanish bank is exploring options for its Polish operations. The news follows reports earlier this year by the Financial Times that Santander is considering exiting the U.K. market, among a number of strategic options. "The rationale of exiting Poland seems less compelling than selling, for instance, the U.K. bank," analysts Marta Sanchez Romero and Anand Demble write. The profitability of its Polish unit--with a 15% return on equity for 2024--is almost double the U.K.'s 8% and above the group's 13%, they say. However, the Polish banking market is a highly competitive one in which Santander has been losing market share in deposits, they add. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

April 09, 2025 02:59 ET (06:59 GMT)

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