Bankinter | The investment funds managed by Deutsche Bank Asset Management (DWS) have increased their exposure to Banco Santander (SAN).
The exposure rises to 1.03% of the bank´s capital after acquiring 0.8% in 2019. DWS thus becomes one of Santander´s investors of reference, behind Blackrock (4.87%), Vanguard (~3.0%), Norges Bank (~3.0%) and Capital Group (~2%) among others.
It is good news as it demonstrates the interest of international investors in Santander at its actual prices.
The estimated value of DWS´ holding in DWS rises to 750 M€, equivalent to 4.46€/share (compared to current trading 4.60€/share). 4 April Santander presented its strategic plan for 2019/2020 aimed at improved profitability and solvency which has been well received by the market (it has accumulated a revaluation of +16.0% YTD).
Santander aspires to a profitability (ROTE) in the medium term of ~13/15.0% with a solvency ratio CETI FL of ~11/12.0%. The plan centres on digitalisation and effeciciency (efficiency target ~42/45% vs 45/47% previous and 46.0% current).
BANCO SANTANDER (Buy; at close: 4.6€; Variation: -0.2%; Objective Price: 5.70€).