Morgan Stanley | Alvaro Serrano upgrades his recommendation for Banco Sabadell (SAB) to Overweight and the objective price from 1.10 to 2.35 euros. Sabadell has performed 10% worse than the sector YTD and Alvaro thinks that there is greater visibility in both profits and capital, which should provoke an increase in value.
Bankinter | Bankia has presented its first quarter results (Q12019). We highlight the principal figures compared to the consensus: Interest margins: 526 M€ (-4,7% vs 502 M€ expected); Gross margin: 813 M€ (-13,3%; vs 814 M€ expected); Operational margin: 357 M€ (-16,6%; vs 355 M€ esperado); Annual net profit: 205 M€ (-10,8% vs -40 M€ in Q4 18 vs 196M€ expected).
Banco Santander revealed its 1Q19 numbers. Intermediation margin (NII or margin of interest) € 8.68 + 3% yoy <€ 8.75 bn € e cons. Attributed net profit is 1.84 bn € -10.41% yoy against the 1.83 bn € estimated by the consensus, after a net charge of € 108 M for restructuring costs in the United Kingdom and Poland and assets sale. Ordinary profit has grown in seven of its ten main markets.
Renta4 | Q119 results are below our estimates across the whole account: -3% in interest margins; -4% in gross profits; -2% in net margin for lower operational costs than expected and -4% in net profits. Compared to the consensus, slightly below in interest margins and gross profits (-1% in both cases), and 1% above in net margins and net profits.
Link Securities | CaixaBank has announced that the Bank of Spain has notified it formally of its minimum level of eligible assets (MREL), as has been determined by the Single Resolution Unit (JUR, in Spanish).
Bankinter | The investment funds managed by Deutsche Bank Asset Management (DWS) have increased their exposure to Banco Santander (SAN). It is good news as it demonstrates the interest of international investors in the Spanish bank at its actual prices.
Alphavalue | During the last decade, Banco Santander has successfully diversified constructing a portfolio of low risk/high growth activities. Although it should guarantee the longevity of the group, it has not translated into profits for smaller shareholders.
M&G Valores | A sustained annual growth in profits of 4% is well below that of previous bull cycles in the stock market, but seems realistic in the current situation. We have on one hand the modest growth of developed economies (secular stagnation), and on the other the composition of the Ibex dominated by regulated sectors, with modest growth, and the banks.
Spanish banks are last in Eurozone in Tier 1 and penultimate in regulatory capital. But they have an unquestionable competitive advantage: they are the only transparent ones in the Eurozone for the ECB and for the other investors being the only audited ones. There are no skeletons in the closet even if there is less capital to compensate.
The Q418 results have been a negative catalyst for Spanish banks and almost all of them (with the notable exception of BBVA) have seen how the stock market advances accumulated over the course of the year have vanished to the point of returning negative.The recurrent tendencies of incomes have remained moderately positive, as happened in 2018, but, in opinion of Santander Research, net financial margins remain vulnerable.