Santander to Lay Out New Plan in April -- 2nd Update
2019年1月30日 - 8:25PM
Dow Jones News
Adds Executive chairman comments, analysts comments, details,
new plan announcement
--Banco Santander will present a new strategic plan in April
--The bank achieved its 2018 targets, including double-digit
growth in EPS, and 4Q net profit beat expectations
--The results benefited from a strong performance in Brazil,
Spain and Mexico, which offset some weaknesses in the U.K.
By Pietro Lombardi
Banco Santander SA (SAN.MC) will present a new plan in April
after a better-than-expected fourth quarter helped the bank achieve
its targets for 2018.
The profit beat failed to boost the stock, but may help the bank
move on from its handling of former presumptive CEO Andrea Orcel.
Earlier in January, Santander said it wouldn't proceed with the
appointment of Mr. Orcel as new CEO--announced last year--over
compensation issues.
The new strategy will be presented on April 3 at the bank's
investor day in London, Executive Chairman Ana Botin said at the
results' presentation Wednesday.
Santander will "continue with the same strategy," building on
its strengths, such as diversification and scale, Ms. Botin said.
She also confirmed that the bank plans to pay full-cash dividend
for 2019.
The banking giant didn't disclose details of the new plan, but
it said that it targets a return on tangible equity--a key measure
of profitability--of 13% to 15% and a core tier 1 ratio of between
11% and 12% in the medium term.
The targets for 2018, which included a double-digit growth in
EPS, a core tier 1 ratio above 11% and a RoTE above 11.5%, have
been achieved.
In the last quarter of last year, net profit rose 34% on year to
2.07 billion euros ($2.37 billion).
Gross income, Santander's top line, rose 4% to EUR12.54
billion.
Analysts had expected a net profit of EUR1.94 billion on gross
income of EUR12.17 billion, according to a consensus forecast
provided by FactSet.
Santander reported "a decent set of numbers but dig deeper and
the quality of the beat declines," Citi said.
At 1018 GMT Santander shares trade 0.2% lower at EUR4.28.
For the full year, the bank reported net profit of EUR7.81
billion on gross income of EUR48.42 billion, the latter being the
highest on record, the bank said.
Last year's results benefited from the strong performance of the
bank in Brazil, Spain and Mexico, which offset some weaknesses in
the U.K.
Underlying profit grew 22% in Brazil, which remains the main
contributor to the bank's bottom line, and 21% in Spain last year.
Mexico also posted a significant growth. In the U.K. underlying
profit fell 8% last year, as the competitive environment put
pressure on revenue and investment in digital transformation pushed
up operating costs.
"Latin America has remained an important engine for growth
within the group, with especially strong progress in Brazil and
Mexico," the executive chairman said.
"2018 has been an excellent year for the group. We have
successfully completed our three-year strategic plan," she
said.
Santander's core tier 1 ratio, a key measure of balance-sheet
strength, rose to 11.3% at the end of December from 11.1% as of
September. This is "in spite of external and regulatory headwinds,"
Ms. Botin said.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
January 30, 2019 06:10 ET (11:10 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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