Santander (AO) | Buy | Q2 2026 first reaction: a bit messy at the margin

Research evidence excerpt

Santander (AO) | Buy | Q2 2026 first reaction: a bit messy at the margin

Santander Buy | Target Price: EUR12.10

Company description Management

Santander is a European retail bank headquartered in Madrid with leadership Ana Botín, Executive Chairman

positions in Spain, Portugal, Brazil, Chile, Argentina, consumer finance, but also Héctor Grisi, CEO

the UK (with the recently-announced acquisition of TSB) and the US (with the Jose Antonio Garcia Cantera, CFO

proposed purchase of Webster). The group is also a contender in Mexico. Lastly, Key shareholders

Santander is leveraging its technological savviness to reduce its cost per product Free float 98.90%

and per client. The organisation of the group by global platforms is unique in the Board 1.10%

sector. Institutional 58.19% Retail 40.71%

Investment case Valuation methodology

Santander has been completely overhauled since 2015 and is We value Santander using a sum-of-the-parts valuation.

now creating value every quarter. Its valuation is very dependent on: 1) the CoE, and 2) the

The reorganisation by Global Business Lines emphasises the currency levels in emerging markets - which have been subject

inherent simplicity of a very efficient business model. to major depreciation over the years.

The strategic priority of technology enables the bank to We have introduced the concept of a "composite" Santander,

maximise the economies of scale made possible by its 180m introducing peer groups from the neobank, payments, and Latin

client base and its unparalleled distribution network over 10 American landscape.

countries, spread across Europe, the US, and Latin America. Risks to our rating

Catalysts Capital management getting too aggressive (through SRTs and

Integration of Webster securitisation).

Integration of TSB.