Santander must earn at least 7,000 million in 2015 to not disappoint – Economíahoy.mx

Carlos Jaramillo – 6:00 – 26/01/2016

• The company presents results on Wednesday

• It would mean a more than 20% in 2014

On Wednesday the organization headed by Ana Patricia Botin present 2015 accounts and not to disappoint the market will have to achieve a significant increase in their profits. The consensus expects the bank to write down just under 7,000 million euros, which would represent an increase of almost 20% compared to 2014.

In any case, expectations for the Banco Santander They have been significantly reduced during the last six months: earnings forecasts for 2015 have fallen almost 7% in the half.

And analysts have penalized the bank’s large exposure to Brazil -in 2014 accounted for 20.5% of its profits netas-. The country is in recession and is not expected to come out of it until 2017 (its economy is expected to shrink this year by 2.8%).

In addition, the Brazilian real during 2015 suffered a decline of 25.5% against the euro, which hurts the bank when it comes to repatriate their profits. Thus, the BPI analysis team believes that “the exchange rate and macroeconomic slowdown will weigh on earnings in Latin America.”

“The focus of the results will be in the evolution of Brazil, volumes and delinquencies, and the pace of deterioration in Spain in terms of net interest income, “says Nuria Alvarez, an analyst at Renta 4. For the fourth quarter experts expect its earnings rub 1,300 million euros, decline of more than 10% over the same period last year. Thus, from Kepler believe that “the slowdown will continue, with further quarterly pressure.”

The consensus expected net attributable profit generated by Brazil in the last quarter of 2015 reach 324 million euros, 10 % less than the same period last year and a decline of almost 16% over the period between July and September.

So far this year the bank has been punished in the park, suffering a decline of around 15%, down slightly below the 17% of the sector in Europe. These declines have made the firm has become more attractive for analysts: give your best recommendation in three years, while a hold; and a potential of over 30%, while its valuation is down 7.5% so far this year.

Other news

Featured Content