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Opinions David Driscoll
Banco Santander SASANCOMMENTMay 20, 2014
Stock 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
The difficulty with many of the European banks is simply that business in Europe is really bad. This bank has been using some of their capital to buy back the ownership of some of the regional banks that they spun off a while back, so that they can start to enhance some of their earnings again. This is a good retail operation. It is just the environment that they are working in right now is not the place to be. Until Europe recovers, European banks are probably just going to sit there, struggle and go sideways.