With prudence comes opportunity

摘要

Spanish-headquartered bank Santander is riding the crisis well. First quarter net attributable profits rose by 22% to €2.2bn and the bank reaffirmed its 15% earnings per share target for the full year. At €83bn, it is the largest bank by market cap in the eurozone and seventh in the world. Its shares, however, have fallen, although it has outperformed the plummeting banking sector by 3% this year to date. The well-diversified group's stock is suffering from three investor concerns: the problematic Spanish economy with its real estate implosion, the UK slowdown and possible recession and finally, fears that it will be making an acquisition. Although the bank denies it is on the acquisition trail, it has historically said one thing and done another on the merger and acquisition front.