Banco Santander Share Discussion Threads

[crazi] 15/2/2022 16:42

Banked 290.2 --- good luck :-)

[crazi] 15/2/2022 09:09

CNBC@CNBC

Stock futures jump on report that Russia is returning some troops to bases.

[crazi] 02/2/2022 17:30

It's astonishing how a trade of 537 shares can up the price of such a large bank by 10 points in the auction! Market makers are obviously in cahoots with Brokers laying large off book CFD type bets. There's no other explanation for it as it's only Santander's UT trades that cause such huge changes in share price ..

[my retirement fund] 02/2/2022 14:17

I would be astonished if it doesn't have a crack at breaking 3.00 in the coming weeks - famous last words

[crazi] 02/2/2022 13:55

May be running out of steam for today. I think what will help the share price is the buyback scheme. It pushed the share price to 300 last time but that will only begin after the AGM. So in the meantime the price may fall back...

[flyfisher] 02/2/2022 13:40

Loan loss provisions declined sharply. With mid single figure growth forecast and a lower cost income ratio, i would expect some modest upgrades to current broker forecasts.

[crazi] 02/2/2022 08:59

Nathan Bostock, Chief Executive Officer, commented:

"Thanks to the hard work of our staff across the UK, we have delivered another strong financial performance in a changeable and competitive environment. We have further cemented our position as the UK's third largest mortgage lender, helping customers with £7.5bn of net mortgage lending, and attracted 19,000 new current account customers through our switcher campaign. At the same time, we have grown income, realised the savings from our investment programme and continued to simplify our operations.

Our strategy means we are in good shape thanks to our prudent approach to risk, strong capital and resilient balance sheet and we are well placed to continue growing as the UK economy recovers.

"I feel incredibly privileged to have led Santander UK over the past seven years and particularly proud of the difference we have made for customers and communities across the UK, not least through the vital help we provided during the pandemic. Our absolute priority is to continue providing the support our customers need at this time, including to households and businesses facing challenges due to rising costs.

"I would like to thank all my colleagues for their support and commitment, and I know that the bank will continue to go from strength to strength under the leadership of my successor Mike Regnier."


* Strong 2021 results with higher operating income and £7.5bn net mortgage growth

* Profit from continuing operations1 before tax up 266% to £1,858m (adjusted2 up 233%).

* Adjusted Banking NIM2 up 29bps to 1.92% (2020: 1.63%) following deposit repricing. CIR down to 56% (2020: 63%).

* Operating expenses up 5% with £278m transformation programme investment.

* Adjusted operating expenses2 down 1% as transformation programme savings helped to offset inflationary pressures.

* £233m credit impairment write-backs largely related to the UK economic recovery and Covid-19 PMAs.

* Provisions for other liabilities and charges increased by £116m to £379m, of which £130m related to the transformation programme.

* Proven balance sheet resilience with strong capital and liquidity

* Prudent approach to risk reflected by low rate of arrears, no material corporate defaults, ECL provision of £0.9bn (Dec20: £1.4bn).

* CET1 capital ratio of 15.9% and UK leverage ratio of 5.2% are well above regulatory requirements. Strong LCR of 166% (2020: 150%).

* Asset sales and transfers of CIB to SLB1 reduced customer loans by £6.0bn and RWAs by c£6bn.

* Paid £1.3bn interim ordinary share dividends related to 2021 profit and capital surplus assessment from asset sales and CIB transfer.

* Successful 2021 Bank of England stress test, our lowest post-stress CET1 capital ratio was 300bps above the reference rate.

* Multi-year transformation programme focused on efficiency and meeting the changing needs of our customers and people

* 2021 transformation programme investment largely related to the branch closures and head office consolidation.

* Since 2019, £742m of investment has realised £480m of savings to date, contributing to improved adjusted CIR2 of 50% (2020: 60%).

* Working to become a more sustainable and responsible bank focused on what matters most to our customers and communities

* Exceeded our target to financially empower 245,300 people and delivered financial education resources to over 500,000 young people.

* Helped our customers go green with EnergyFact reports for homeowners, ESG investment fund, and pilot for green corporate deposits.

* Named one of The Times Top 50 Employers for Women 2021 and achieved a top 20 ranking in the Social Mobility Index 2021.

* Achieved our goal to be carbon neutral and removed unnecessary single-use plastic from our own operations.

[flyfisher] 02/2/2022 08:39

The results comment on a 40% of net earnings dividend.

[crazi] 02/2/2022 08:21

I reckon based on 2.275B euros profit in the quarter then divi = circa 4.6pps and then a new buy back scheme worth about £450M... will likely push the share price back to 300+ after the AGM...

Buy and hold...

[my retirement fund] 02/2/2022 07:52

Dividend increase coming

[crazi] 02/2/2022 07:21

Good results:

HIGHLIGHTS OF THE PERIOD
In the quarter, the strength of our model enabled us to earn a profit of EUR 2,275 million, ending each quarter with an underlying profit
exceeding EUR 2 billion, in an environment marked by the recovery of activity in all regions.

In applying the shareholder remuneration policy for 2021, the Bank paid an interim cash dividend against 2021 results totalling EUR4.85 cents per share. Additionally, a share buyback programme was carried out for a total of EUR 841 million, acquiring 259,930,273 own shares, equivalent to 1.499% of share capital. The reduction in share capital via the redemption of shares is expected to be submitted for approval at the 2022 Annual General Meeting (AGM).

In accordance with the current policy of total remuneration of approximately 40% of underlying profit, split equally between cash dividends and share buybacks, the board will make a proposal regarding the remaining shareholder remuneration against 2021 results to the AGM, the final terms of which will be disclosed when the AGM is called.

GROWTH
Digital adoption continued to be key, as we already have more than 47 million digital customers (+12% year-on-year). In 2021, 54% of
sales were made through digital channels (44% in 2020).
u Loyal customers exceeded 25 million, 11% higher year-on-year.
u Business volumes grew at a healthy pace in a context of normalization. In this environment, and excluding the exchange rate impact,
loans and advances to customers rose nearly EUR 13 billion (+1%) in the quarter and 4% year-on-year. Customer funds were up by
close to EUR 14 billion, +1% in the quarter and +7% year-on-year.

PROFITABILITY
Attributable profit amounted to EUR 2,275 million in Q4'21, with no net results recorded in the net capital gains and provisions line.

Compared to the previous quarter, profit was 5% higher (+5% in constant euros).

2021 attributable profit was EUR 8,124 million. Excluding the EUR 530 million charge recorded in Q1'21 from restructuring costs, underlying attributable profit stood at EUR 8,654 million, 70% higher than in 2020 (+78% in constant euros), underpinned by the positive performance across regions, Digital Consumer Bank (DCB) and the global businesses.

These results were reflected in higher profitability: underlying RoTE of 12.7% (7.4% in 2020), underlying RoRWA was 1.78% (1.06% in
2020) and underlying earnings per share of EUR 0.468 (EUR 0.262 in 2020).

STRENGTH
Cost of credit further improved to 0.77% (1.28% in FY'20 and 0.90% in September 2021). Total loan-loss reserves reached EUR 23,698
million and coverage was 71%.

The fully-loaded CET1 ratio was 12.12% at year end, with organic generation of 42 bps in the quarter. We also recorded regulatory impacts (-2 bps), markets and others (-9 bps) and corporate transactions (-4 bps). The phased-in CET1 ratio rose to 12.51%. Including acquisition of SCUSA minority interest (-8 bps) which closed on 31 January 2022 and the announced acquisition of Amherst Pierpont (-8 bps) which is subject to completion, regulatory approval and other conditions, the fully-loaded CET1 ratio would stand at 11.96% and the phased-in ratio at 12.35%.

TNAV per share was EUR 4.12 in December, a 3% increase quarter-on-quarter and a 11% increase year-on-year (including the cash dividends paid in the last 12 months).

[crazi] 31/1/2022 13:20

Trading Floor Audio
@TradeFloorAudio
Traders increased BoE rate bets now see FIVE rate rises in 2022 ..

#BOE #GBP
1:17 PM · Jan 31, 2022·TweetDeck

[crazi] 31/1/2022 13:17

MONDAY 31 JANUARY 2022 1:06 PM
British stocks primed to reverse years of underperformance - especially

UK stocks are primed to turnaround years of underperformance and embark on a “winnning streak,” according to analysis by a top City consultancy.

London markets are ready to capitalise on the world’s top central banks launching a rate hike spree this year to get on top of inflation, according to Pantheon Macroeconomics.

The FTSE 100 and 250, the City’s top indexes, heavy weighting toward financial stocks, such as banks and funds, means they are primed to jolt higher amid a higher interest rate environment.

A shortage of tech stocks, a criticism often levelled against the City, listed in London may actually work in the UK’s favour this year.

“UK equities tend to fare relatively well when interest rate expectations increase, as higher rates reduce the present value of the expected profits of tech firms,” Samuel Tombs, chief UK economist at Pantheon, said.

High street lenders on the FTSE 100, including Barclays, HSBC, Lloyds and NatWest are set to boost the capital’s premier index in 2022.

Higher interest rates widen banks’ net interest margin, a key source of income, and allows them to charge higher rates on loans, boosting their profitability and making their shares more attractive to investors.

[crazi] 25/1/2022 20:50

Rate decision next week... reckon an increase... banks rally

End year results coming - banks rally

Russia tensions - Britain viewed as a safer haven prompting influx of investment - banks benefit

Indicators are all positive...

[crazi] 25/1/2022 09:48

Bargain prices this morning...

Santander are doing very well financially. It's an under estimated stock with it's low daily volumes but overall I love the fact we don't have to pay taxes when buying... much easier to make profits over and over...

[my retirement fund] 18/1/2022 10:31

You a holder fly?

[flyfisher] 17/1/2022 17:09

It is likely to return euro 20c to shareholders, of which 50% will be allocated to buying in shares, which they have indicated that they will do at prices below ntav.

So after that about euro 10c, which is reduced 20% by spanish withholding tax, so 8c net.

[mackie] 17/1/2022 15:56

Anyone know the dividend prospects with this one?

[my retirement fund] 07/1/2022 08:39

Looking cheap against its peers now

[my retirement fund] 30/12/2021 14:56

JeezBBC News - Santander: Bank hands out £130m in Christmas blunderhttps://www.bbc.co.uk/news/business-59826345