Santander Needs Step-Up in Profitability to Fully Close Discount -- Market Talk

Dow Jones

Mar 25, 2025

1008 GMT - Santander needs higher returns from its Brazil and U.S. activities to raise the bar as these two key units are dragging on the group and limiting valuation upside, UBS says in a research note. "With the stock halving its relative discount this year and trading around its 10-year average, the debate shifts to what can bring SAN back fully in line with the sector's valuation, something that has not occurred since 2H20 alongside," analysts Ignacio Cerezo and Alvaro Fernandez-Garayzabal write. The most effective strategies to facilitate an additional rerating would be a step-up in profitability in Brazil and the U.S.--though this seems unlikely for now--and getting capital management right, which is perhaps more important, they add. Shares are up 46% year to date. (elena.vardon@wsj.com)

(END) Dow Jones Newswires

March 25, 2025 06:08 ET (10:08 GMT)

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The most effective strategies to facilitate an additional rerating would be a step-up in profitability in Brazil and the U.S.--though this seems unlikely for now--and getting capital management right, which is perhaps more important, they add. Shares are up 46% year to date. (elena.vardon@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  March 25, 2025 06:08 ET (10:08 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Santander Needs Step-Up in Profitability to Fully Close Discount -- Market Talk</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSantander Needs Step-Up in Profitability to Fully Close Discount -- Market Talk\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2025-03-25 18:08</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n     1008 GMT - Santander needs higher returns from its Brazil and U.S. activities to raise the bar as these two key units are dragging on the group and limiting valuation upside, UBS says in a research note. \"With the stock halving its relative discount this year and trading around its 10-year average, the debate shifts to what can bring SAN back fully in line with the sector's valuation, something that has not occurred since 2H20 alongside,\" analysts Ignacio Cerezo and Alvaro Fernandez-Garayzabal write. The most effective strategies to facilitate an additional rerating would be a step-up in profitability in Brazil and the U.S.--though this seems unlikely for now--and getting capital management right, which is perhaps more important, they add. Shares are up 46% year to date. (elena.vardon@wsj.com) \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  March 25, 2025 06:08 ET (10:08 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4521","symbol_name":"英国银行股","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2522404699","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2522404699","pubTimestamp":1742897280,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"1008 GMT - Santander needs higher returns from its Brazil and U.S. activities to raise the bar as these two key units are dragging on the group and limiting valuation upside, UBS says in a research note. \"With the stock halving its relative discount this year and trading around its 10-year average, the debate shifts to what can bring SAN back fully in line with the sector's valuation, something that has not occurred since 2H20 alongside,\" analysts Ignacio Cerezo and Alvaro Fernandez-Garayzabal write. The most effective strategies to facilitate an additional rerating would be a step-up in profitability in Brazil and the U.S.--though this seems unlikely for now--and getting capital management right, which is perhaps more important, they add. Shares are up 46% year to date. ","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4521":"英国银行股","SAN":"桑坦德银行","BK4207":"综合性银行"},"translate_title":"桑坦德银行需要提高盈利能力才能完全关闭折扣——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SAN":0.9},"content_text":"1008 GMT - Santander needs higher returns from its Brazil and U.S. activities to raise the bar as these two key units are dragging on the group and limiting valuation upside, UBS says in a research note. \"With the stock halving its relative discount this year and trading around its 10-year average, the debate shifts to what can bring SAN back fully in line with the sector's valuation, something that has not occurred since 2H20 alongside,\" analysts Ignacio Cerezo and Alvaro Fernandez-Garayzabal write. The most effective strategies to facilitate an additional rerating would be a step-up in profitability in Brazil and the U.S.--though this seems unlikely for now--and getting capital management right, which is perhaps more important, they add. Shares are up 46% year to date. (elena.vardon@wsj.com) \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  March 25, 2025 06:08 ET (10:08 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}