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Opinions Darren Sissons
Banco Santander SASANCOMMENTJan 30, 2014
Darren SissonsStock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Chris StuchberryChris Stuchberry
Rick StuchberryInterest rates will go up after the ECB changes chairs in June 2019. Each quarter they put up $2 billion+ of net income and are trading a hair above book value now, plus negative sentiment to Euro banks now. (3.3% dividend yield, Analysts' price target: $106.76)
Chris StuchberryHe doesn’t own this, but he owns comparable banks. The whole global banking sector is trading at very cheap multiples. They are all under pressure from the flattening yield curve, and they all pay hefty dividends. The bank’s poor performance is sector-driven more than driven by the political issues in the countries where it does business.
He owns this as a European bank holding in the portfolio. The flat yield curve is holding them back. He will continue to hold it for when the yield curve normalizes.
Rick Stuchberry
Met management about 6 months ago and came away with the impression that there are a ton of potential write-offs on their loan book, but they weren’t taking them. If compared to what the US did, they took the pain followed with the medicine on top which resulted in a big recovery in the US. Spanish have not done that and really have not received any government funding of any significance. If they don’t deal with the bad loans on the books, longer-term this will ultimately cause the Spanish banks to turn into Japanese zombie banks. 7% dividend yield. The UK would be a better place to look for banking recovery stories.