UniCredit Makes $10.5 Billion Bid for Banco BPM, Setting Sights Closer to Home
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 25 2024
0mins
Should l Buy SAN?
Source: WSJ
UniCredit's Acquisition Move: UniCredit has launched a $10 billion-plus bid to acquire Banco BPM, marking a strategic shift towards consolidating its position in the Italian banking sector after previously considering a takeover of Germany’s Commerzbank.
Impact on European Banking Landscape: If successful, the merger would create a banking giant with a market capitalization of approximately 72.4 billion euros, surpassing Intesa Sanpaolo and making it the largest bank in the eurozone by market value.
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Analyst Views on SAN
Wall Street analysts forecast SAN stock price to fall
2 Analyst Rating
0 Buy
1 Hold
1 Sell
Moderate Sell
Current: 12.360
Low
4.90
Averages
7.40
High
9.91
Current: 12.360
Low
4.90
Averages
7.40
High
9.91
About SAN
Banco Santander, S.A. is a Spain-based company engaged as a retail and commercial bank. The Banks segments include Continental Europe, the United Kingdom, Latin America and the United States. The Continental Europe segment covers all businesses in the Continental Europe. The United Kingdom segment includes the businesses developed by various units and branches in the country. The Latin America segment embraces all its financial activities conducted through its banks and subsidiaries in the region. The United States segment includes the Intermediate Holding Company (IHC) and its subsidiaries Santander Bank, Banco Santander Puerto Rico, Santander Consumer USA, Banco Santander International, Santander Investment Securities, and the Santander branch in New York. The Company's commercial model satisfies the needs of all types of customers: individuals with various income levels.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Seeking Dividends? Explore Opportunities in Europe.
U.S. Dividend Seekers: Investors in the U.S. are encouraged to explore European markets for potential dividend opportunities.
European Market Appeal: European companies are offering attractive dividend yields, which may be appealing compared to U.S. counterparts.
Economic Factors: Factors such as currency fluctuations and economic recovery in Europe are influencing the attractiveness of these investments.
Investment Strategy: Diversifying into European dividends could enhance returns for U.S. investors seeking income.
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- Acquisition Strategy: The bank's acquisition of Webster Financial, a community bank based in Connecticut, is part of its strategic expansion in the northeastern U.S. market, aimed at enhancing market share and profitability.
- Profitability Goals: Santander aims to achieve a 20% return on tangible equity by 2028, showcasing its confidence in future growth and attractiveness to investors.
- Market Recognition: Notable investor Jim Cramer praised Santander as an “amazing” investment choice, further elevating market interest and investor confidence in the stock.
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Event Trigger: This payment is a result of the termination of an agreement between Webster Financial and Banco Santander.
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- Earnings Growth: Banco Santander's Q4 net interest income rose to €11.5B from €11.1B in Q3, exceeding the Visible Alpha consensus of €11.3B, indicating robust revenue growth that further solidifies its market position.
- Buyback Program Launch: The bank announced a €5.03B share buyback program, with €1.83B corresponding to 25% of the underlying profit for the second half of 2025, aimed at enhancing shareholder returns and boosting market confidence.
- Expense Control: Despite operating expenses rising from €6.27B to €6.59B, Banco Santander achieved a 7.4% increase in attributable profit to €3.76B, surpassing analyst expectations, demonstrating effective cost management.
- Capital Adequacy Improvement: The return on equity increased from 13.8% to 17.9% in Q4, with customer deposits reaching €1.04T, reflecting a strong customer base and capital generation capacity that lays a solid foundation for future growth.
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Banco Santander Reports Profit Growth for FY 2025
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- Steady Revenue Increase: The bank's total income reached €16.113 billion in Q4, up 1% year-over-year, while total income for FY 2025 was €58.67 billion, reflecting a 0.5% growth from the previous year, showcasing the company's success in revenue diversification and strengthening its market competitiveness.
- Acquisition Strategy: Banco Santander has agreed to acquire Webster Financial Corp. for approximately $12.3 billion, which is expected to expand its market share and drive double-digit revenue growth by 2027, enhancing overall profitability.
- Commitment to Buybacks: The board has approved a €5 billion share buyback program aimed at returning capital to shareholders against FY 2025 and 2026 earnings, demonstrating confidence in future performance and a strong commitment to enhancing shareholder value.
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Seeking Dividends? Explore Opportunities in Europe.
U.S. Dividend Seekers: Investors in the U.S. are encouraged to explore European markets for potential dividend opportunities.
European Market Appeal: European companies are offering attractive dividend yields, which may be appealing compared to U.S. counterparts.
Economic Factors: Factors such as currency fluctuations and economic recovery in Europe are influencing the attractiveness of these investments.
Investment Strategy: Diversifying into European dividends could enhance returns for U.S. investors seeking income.
See More
Banco Santander's Acquisition of Webster Financial Highlights U.S. Ambitions
- Strong Performance: Banco Santander's stock has surged 142% over the past 12 months, indicating robust market performance and reflecting its competitive edge and growth potential in the global banking sector.
- Acquisition Strategy: The bank's acquisition of Webster Financial, a community bank based in Connecticut, is part of its strategic expansion in the northeastern U.S. market, aimed at enhancing market share and profitability.
- Profitability Goals: Santander aims to achieve a 20% return on tangible equity by 2028, showcasing its confidence in future growth and attractiveness to investors.
- Market Recognition: Notable investor Jim Cramer praised Santander as an “amazing” investment choice, further elevating market interest and investor confidence in the stock.
See More
WEBSTER FINANCIAL CORP: $489 MILLION TERMINATION FEE OWED TO BANCO SANTANDER IF AGREEMENT IS TERMINATED - SEC FILING
Termination Fee: Webster Financial Corp. is set to pay a termination fee of $489 million to Banco Santander.
Event Trigger: This payment is a result of the termination of an agreement between Webster Financial and Banco Santander.
See More
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- Stock Performance: Biogen's stock experienced an increase on Friday despite facing declining sales.
- Drug Portfolio Issues: The company's drug portfolio showed poor performance in the fourth quarter, contributing to investor concerns.
See More
Banco Santander Q4 Earnings Beat Expectations, Launches Buyback Program
- Earnings Growth: Banco Santander's Q4 net interest income rose to €11.5B from €11.1B in Q3, exceeding the Visible Alpha consensus of €11.3B, indicating robust revenue growth that further solidifies its market position.
- Buyback Program Launch: The bank announced a €5.03B share buyback program, with €1.83B corresponding to 25% of the underlying profit for the second half of 2025, aimed at enhancing shareholder returns and boosting market confidence.
- Expense Control: Despite operating expenses rising from €6.27B to €6.59B, Banco Santander achieved a 7.4% increase in attributable profit to €3.76B, surpassing analyst expectations, demonstrating effective cost management.
- Capital Adequacy Improvement: The return on equity increased from 13.8% to 17.9% in Q4, with customer deposits reaching €1.04T, reflecting a strong customer base and capital generation capacity that lays a solid foundation for future growth.
See More
Banco Santander Reports Profit Growth for FY 2025
- Significant Profit Growth: Banco Santander reported an attributable profit of €14.101 billion for FY 2025, marking a 12% increase from €12.574 billion in FY 2024, indicating a robust enhancement in profitability that is expected to further boost shareholder returns.
- Steady Revenue Increase: The bank's total income reached €16.113 billion in Q4, up 1% year-over-year, while total income for FY 2025 was €58.67 billion, reflecting a 0.5% growth from the previous year, showcasing the company's success in revenue diversification and strengthening its market competitiveness.
- Acquisition Strategy: Banco Santander has agreed to acquire Webster Financial Corp. for approximately $12.3 billion, which is expected to expand its market share and drive double-digit revenue growth by 2027, enhancing overall profitability.
- Commitment to Buybacks: The board has approved a €5 billion share buyback program aimed at returning capital to shareholders against FY 2025 and 2026 earnings, demonstrating confidence in future performance and a strong commitment to enhancing shareholder value.
See More
