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Banco Santander

LSE:0HLE
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
0HLE
LSE
€75B
Market Cap
  1. Home
  2. GB
  3. Banks
Company description

Banco Santander, S.A., together with its subsidiaries, provides various retail and commercial banking products and services for individual and corporate clients worldwide. The last earnings update was 53 days ago. More info.


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0HLE Share Price and Events
7 Day Returns
0%
LSE:0HLE
1%
GB Banks
0.6%
GB Market
1 Year Returns
-24.8%
LSE:0HLE
-8.7%
GB Banks
1.1%
GB Market
0HLE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Banco Santander (0HLE) 0% 3.8% 3.8% -24.8% - -
GB Banks 1% 7.9% 4.8% -8.7% 17% -11.2%
GB Market 0.6% 3.6% 6.9% 1.1% 15.6% 6.2%
1 Year Return vs Industry and Market
  • 0HLE underperformed the Banks industry which returned -8.7% over the past year.
  • 0HLE underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 1.1% over the past year.
Price Volatility
0HLE
Industry
5yr Volatility vs Market

Value

 Is Banco Santander undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Banco Santander to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Banco Santander.

LSE:0HLE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 17 analysts.
= Stable Book Value * Return on Equity
= €6.63 * 8.6%
€0.57
Book Value of Equity per Share Weighted future Book Value estimates from 15 analysts. €6.63
Discount Rate (Cost of Equity) See below 17.2%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:0HLE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 8.2%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.593 (1 + (1- 25%) (412.59%))
1.957
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.96
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.957 * 8.18%)
17.24%

Discounted Cash Flow Calculation for LSE:0HLE using Excess Returns Model Model

The calculations below outline how an intrinsic value for Banco Santander is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:0HLE Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (8.6% – 17.24%) * €6.63)
€-0.58
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= €-0.58 / (17.24% - 1.23%)
€-3.59
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= €6.63 + €-3.59
€3.03
LSE:0HLE Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in LSE:0HLE represents 1.10653x of BME:SAN
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
1.10653x
Value per Share
(Listing Adjusted, USD)
= Value per Share (EUR) x Listing Adjustment Factor
= € 3.03 x 1.10653
$3.36
Value per share (USD) From above. $3.36
Current discount Discount to share price of $5.10
= -1 x ($5.10 - $3.36) / $3.36
-52%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Banco Santander is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Banco Santander's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Banco Santander's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:0HLE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in EUR €0.45
BME:SAN Share Price ** BME (2019-04-15) in EUR €4.61
United Kingdom of Great Britain and Northern Ireland Banks Industry PE Ratio Median Figure of 15 Publicly-Listed Banks Companies 10.35x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 797 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Banco Santander.

LSE:0HLE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= BME:SAN Share Price ÷ EPS (both in EUR)

= 4.61 ÷ 0.45

10.27x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Banco Santander is good value based on earnings compared to the GB Banks industry average.
  • Banco Santander is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Banco Santander's expected growth come at a high price?
Raw Data
LSE:0HLE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.27x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
7.2%per year
United Kingdom of Great Britain and Northern Ireland Banks Industry PEG Ratio Median Figure of 14 Publicly-Listed Banks Companies 0.86x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 564 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:0HLE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.27x ÷ 7.2%

1.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Banco Santander is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Banco Santander's assets?
Raw Data
LSE:0HLE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in EUR €5.95
BME:SAN Share Price * BME (2019-04-15) in EUR €4.61
United Kingdom of Great Britain and Northern Ireland Banks Industry PB Ratio Median Figure of 16 Publicly-Listed Banks Companies 0.88x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,367 Publicly-Listed Companies 1.51x
LSE:0HLE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= BME:SAN Share Price ÷ Book Value per Share (both in EUR)

= 4.61 ÷ 5.95

0.78x

* Primary Listing of Banco Santander.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Banco Santander is good value based on assets compared to the GB Banks industry average.
X
Value checks
We assess Banco Santander's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Banco Santander has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Banco Santander expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Banco Santander expected to grow at an attractive rate?
  • Banco Santander's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Banco Santander's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Banco Santander's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:0HLE Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:0HLE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 7.2%
LSE:0HLE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 8.4%
United Kingdom of Great Britain and Northern Ireland Banks Industry Earnings Growth Rate Market Cap Weighted Average 12.7%
United Kingdom of Great Britain and Northern Ireland Banks Industry Revenue Growth Rate Market Cap Weighted Average 4.6%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 11%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:0HLE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:0HLE Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 55,971 9,855 1
2021-12-31 53,732 9,094 16
2020-12-31 51,734 8,663 19
2019-12-31 50,093 8,055 19
LSE:0HLE Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-12-31 39,326 3,416 7,250
2018-09-30 39,460 -6,167 6,761
2018-06-30 39,891 20,885 6,272
2018-03-31 39,664 22,462 6,371
2017-12-31 39,402 40,188 6,224
2017-09-30 37,966 64,041 6,310
2017-06-30 36,531 40,295 6,564
2017-03-31 35,743 25,895 6,104
2016-12-31 34,478 21,823 5,870
2016-09-30 33,607 15,760 4,312
2016-06-30 33,884 9,765 4,310
2016-03-31 34,457 12,217 5,590

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Banco Santander's earnings are expected to grow by 7.2% yearly, however this is not considered high growth (20% yearly).
  • Banco Santander's revenue is expected to grow by 8.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:0HLE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Banco Santander Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0HLE Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 0.61 0.61 0.61 1.00
2021-12-31 0.56 0.64 0.44 14.00
2020-12-31 0.54 0.60 0.43 19.00
2019-12-31 0.49 0.54 0.42 18.00
LSE:0HLE Past Financials Data
Date (Data in EUR Millions) EPS *
2018-12-31 0.45
2018-09-30 0.42
2018-06-30 0.39
2018-03-31 0.41
2017-12-31 0.40
2017-09-30 0.42
2017-06-30 0.44
2017-03-31 0.41
2016-12-31 0.40
2016-09-30 0.30
2016-06-30 0.30
2016-03-31 0.39

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Banco Santander is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Banco Santander's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Banco Santander has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Banco Santander performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Banco Santander's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Banco Santander's year on year earnings growth rate has been positive over the past 5 years.
  • Banco Santander's 1-year earnings growth exceeds its 5-year average (16.5% vs 6.5%)
  • Banco Santander's earnings growth has not exceeded the GB Banks industry average in the past year (16.5% vs 42.2%).
Earnings and Revenue History
Banco Santander's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Banco Santander Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:0HLE Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 39,326.00 7,250.00 22,222.00
2018-09-30 39,460.00 6,761.00 22,295.00
2018-06-30 39,891.00 6,272.00 22,701.00
2018-03-31 39,664.00 6,371.00 22,631.00
2017-12-31 39,402.00 6,224.00 22,410.00
2017-09-30 37,966.00 6,310.00 21,941.00
2017-06-30 36,531.00 6,564.00 21,423.00
2017-03-31 35,743.00 6,104.00 21,002.00
2016-12-31 34,478.00 5,870.00 20,617.00
2016-09-30 33,607.00 4,312.00 20,677.00
2016-06-30 33,884.00 4,310.00 20,770.00
2016-03-31 34,457.00 5,590.00 20,972.00
2015-12-31 35,181.00 5,690.00 21,191.00
2015-09-30 36,649.00 7,143.00 20,914.00
2015-06-30 36,019.00 7,144.00 20,644.00
2015-03-31 34,323.00 6,057.00 20,255.00
2014-12-31 34,790.00 5,711.00 19,724.00
2014-09-30 33,914.00 5,169.00 17,107.00
2014-06-30 32,840.00 4,611.00 17,074.00
2014-03-31 30,710.00 4,288.00 19,692.00
2013-12-31 30,410.00 4,190.00 19,398.00
2013-09-30 26,874.00 3,727.00 17,497.00
2013-06-30 26,353.00 2,773.00 17,525.00
2013-03-31 25,160.00 1,820.00 17,340.00
2012-12-31 25,016.00 2,213.00 17,386.00
2012-09-30 28,993.00 1,872.00 17,684.00
2012-06-30 30,421.00 3,590.00 17,526.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Banco Santander has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Banco Santander used its assets less efficiently than the GB Banks industry average last year based on Return on Assets.
  • Unable to establish if Banco Santander improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Banco Santander's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Banco Santander has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Banco Santander's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Banco Santander's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Banco Santander Company Filings, last reported 3 months ago.

LSE:0HLE Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 107,361.00 308,626.00 198,672.00
2018-09-30 105,668.00 292,227.00 190,767.00
2018-06-30 104,445.00 288,712.00 192,080.00
2018-03-31 105,466.00 286,548.00 207,084.00
2017-12-31 106,833.00 284,522.00 215,489.00
2017-09-30 108,724.00 284,314.00 190,701.00
2017-06-30 100,955.00 290,747.00 200,609.00
2017-03-31 104,869.00 296,770.00 216,338.00
2016-12-31 102,699.00 312,022.00 237,500.00
2016-09-30 101,122.00 323,674.00 226,723.00
2016-06-30 100,346.00 328,241.00 189,996.00
2016-03-31 98,781.00 308,740.00 214,441.00
2015-12-31 98,753.00 311,879.00 234,680.00
2015-09-30 98,687.00 306,900.00 213,789.00
2015-06-30 101,952.00 304,206.00 164,898.48
2015-03-31 102,105.00 331,033.00 228,913.00
2014-12-31 89,714.00 300,222.00 226,328.00
2014-09-30 88,285.00 292,145.00 188,097.00
2014-06-30 85,716.00 281,360.00 169,496.00
2014-03-31 82,522.00 267,777.00 176,263.00
2013-12-31 79,642.00 256,066.00 214,571.00
2013-09-30 81,639.00 276,551.00 332,991.00
2013-06-30 81,394.00 300,339.00 221,585.00
2013-03-31 84,541.00 324,193.00 339,724.00
2012-12-31 81,212.00 341,192.00 273,334.00
2012-09-30 84,362.00 348,574.00 383,504.00
2012-06-30 81,820.00 349,861.00 237,428.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Banco Santander has an acceptable proportion of non-loan assets held.
  • Banco Santander's liabilities are made up of primarily low risk sources of funding.
  • Loans at Banco Santander are broadly funded by customer deposits.
  • Banco Santander's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Banco Santander has a low allowance for bad loans.
  • Banco Santander has a high level of bad loans (greater than 2%).
X
Financial health checks
We assess Banco Santander's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Banco Santander has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Banco Santander's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.23%
Current annual income from Banco Santander dividends. Estimated to be 5.27% next year.
If you bought $2,000 of Banco Santander shares you are expected to receive $85 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Banco Santander's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).
  • Banco Santander's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Upcoming dividend payment

Purchase Banco Santander before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:0HLE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Banks Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 4.9%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:0HLE Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.25 1.00
2021-12-31 0.26 17.00
2020-12-31 0.25 20.00
2019-12-31 0.23 21.00
LSE:0HLE Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-04-12 0.195 4.254
2018-12-19 0.190 4.532
2018-06-26 0.185 4.257
2018-03-23 0.180 3.522
2017-07-04 0.240 4.257
2017-04-07 0.220 3.733
2016-02-16 0.200 4.669
2016-01-28 0.200 5.555
2015-12-28 0.200 4.851
2015-08-07 0.200 3.909
2015-08-03 0.200 3.206
2015-07-30 0.200 3.186
2015-05-18 0.200 3.069
2015-04-28 0.200 2.988
2015-03-12 0.200 2.950
2015-02-24 0.200 3.094
2015-02-05 0.200 3.202
2014-08-04 0.600 8.588
2014-08-01 0.600 8.100
2014-07-31 0.600 8.023
2014-04-30 0.600 7.977
2014-04-29 0.600 8.379
2014-04-10 0.596 8.493
2014-02-24 0.600 8.975
2014-02-21 0.600 9.195
2013-07-23 0.600 9.750
2013-02-21 0.600 11.152
2013-02-01 0.600 10.182
2012-10-23 0.600 10.041
2012-10-18 0.600 10.262
2012-02-27 0.600 11.460
2012-02-01 0.600 9.359
2011-01-18 0.600 9.012
2010-05-04 0.600 7.045
2009-04-23 0.632 6.773

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of Banco Santander's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
X
Income/ dividend checks
We assess Banco Santander's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Banco Santander afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Banco Santander has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Banco Santander's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
José Álvarez Álvarez
COMPENSATION €9,001,000
AGE 58
CEO Bio

Mr. José Antonio Álvarez Álvarez has been Vice Chairman of Banco Santander, SA since January 15, 2019 and has been its Director since November 25, 2014 and also serves as its Chief Executive Officer. Mr. Álvarez Álvarez served as Executive Director of Banco Santander, S.A. from January 13, 2015 to January 01, 2019. Mr. Álvarez Álvarez served as an Executive Vice President of Financial Management and Investor Relations Division at Banco Santander S.A. since 2004 and served as its Chief Financial Officer from 2004 to January 1, 2015. He served as an Executive Vice President of Financial Management at Banco Santander, S.A. since 2004. He served as General Manager of the Financial Management and Investor Relations Division at SCH since 2004 and Manager of Financial Management from 2002 to 2004. He joined Banco Santander, S.A. in Spain in 2002 as the Head of Finance Management. He serves as Executive VP, Director of Operations & IT at Santander BanCorp. He served as Financial Management Manager/ Financial Director at BBVA from 1999 to 2002 and as Financial Director at Corporacion Bancaria de Espaoa, S.A. (Argentaria) from 1995 to 1999. He served as the Chief Financial Officer/Finance Manager at Banco Hipotecario de España from 1993 to 1995 and Vice President/Deputy Manager at Finanpostal Gestión Fondos de Inversión y Pensiones from 1990 to 1993. He worked in the Research Department of Banco de Crédito Industrial from 1987 to 1990 and at Instituto Nacional de Industria from 1984 to 1987. Mr. Álvarez Álvarez serves as the Chairman of the Board of Santander de Titulización and SGFT, S.A. He served as the Chairman of Europea de Titulización from 1995 to 2002. He has been a Director of Sam Investment Holdings Limited since December 15, 2014. Mr. Álvarez Álvarez has been a Director of Banco Santander (Brasil) S.A. since September 2009. He serves as a Director of Santander Global Property, S.L. He served as a Director of Santander Consumer Finance S.A. since 2002. He served as a Member of the Supervisory Board at Santander Consumer Bank AG. He served as a Director of Inbulnes S.A. He served as a Member of The Supervisory Board at Bank Zachodni WBK SA until February 5, 2015. He served as Director of Banco ABN AMRO Real S.A. He served as a Non Independent External Director of Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A. from September 21, 2006 to March 24, 2014. He served as Director of Santander Holdings USA, Inc. since January 26, 2012. He served as a Member of the Board of Directors of Banco de Crédito Local, S.A. from 2000 to 2002. He was a Member of the Covered Bonds committee of the European Mortgage Association from 1995 to 1999. Mr. Álvarez Álvarez holds a Bachelor's Degree in Business Economics Science from Universidad Santiago de Compostela in Spain and The University of Chicago. He earned an MBA from the University of Chicago's Graduate School of Business.

CEO Compensation
  • José's compensation has increased by more than 20% in the past year.
  • José's remuneration is higher than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Banco Santander management team in years:

1.8
Average Tenure
52.5
Average Age
  • The average tenure for the Banco Santander management team is less than 2 years, this suggests a new team.
Management Team

Patricia de Sautuola y O'Shea

TITLE
Group Executive Chairman
COMPENSATION
€11M
AGE
58

José Álvarez Álvarez

TITLE
CEO & Vice Chairman
COMPENSATION
€9M
AGE
58

Michael Cleary

TITLE
Co-President and Head of Consumer & Business Banking
TENURE
1.8 yrs

Bob Rubino

TITLE
Co-President
AGE
53
TENURE
1.8 yrs

José Antonio Cantera

TITLE
CFO, Head of Financial Division & Senior EVP
AGE
52

Dirk Marzluf

TITLE
Group Head of Technology & Operations
AGE
48
TENURE
0.6 yrs

José Doncel Razola

TITLE
Senior EVP and Group Head of Accounting & Financial Control
AGE
57

Sergio Gámez Martínez

TITLE
Global Head of Shareholder & Investor Relations

Mónica Gallego

TITLE
Group Chief Compliance Officer & Senior EVP
AGE
48
TENURE
4.2 yrs

Juan Cendoya Méndez de Vigo

TITLE
Senior EVP and Head of Communications
AGE
51
Board of Directors Tenure

Average tenure and age of the Banco Santander board of directors in years:

4.3
Average Tenure
58.5
Average Age
  • The tenure for the Banco Santander board of directors is about average.
Board of Directors

José Álvarez Álvarez

TITLE
CEO & Vice Chairman
COMPENSATION
€9M
AGE
58
TENURE
0.3 yrs

Rodrigo Echenique Gordillo

TITLE
Vice Chairman
COMPENSATION
€5M
AGE
72
TENURE
4.3 yrs

Patricia de Sautuola y O'Shea

TITLE
Group Executive Chairman
COMPENSATION
€11M
AGE
58
TENURE
4.6 yrs

Bruce Carnegie-Brown

TITLE
Vice Chairman & Lead Independent Director
COMPENSATION
€732K
AGE
59
TENURE
4.2 yrs

Guillermo de la Dehesa Romero

TITLE
Non-Executive Director
COMPENSATION
€441K
AGE
77
TENURE
16.8 yrs

Belén García

TITLE
Independent Non-Executive Director
COMPENSATION
€414K
AGE
53
TENURE
3.3 yrs

Larry Summers

TITLE
Chairman of International Advisory Board
AGE
63

Álvaro De Souza

TITLE
Independent Non-Executive Director
COMPENSATION
€148K
AGE
70
TENURE
1.1 yrs

Francisco Javier de Sautuola y O’Shea

TITLE
Non-Independent Non-executive Director
COMPENSATION
€121K
AGE
45
TENURE
14.8 yrs

Carlos González

TITLE
Independent Non-Executive Director
COMPENSATION
€266K
AGE
52
TENURE
4.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Banco Santander's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Banco Santander has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Be Tempted To Buy Banco Santander SA. (LON:0HLE) Because Of Its PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for 0HLE Price per share = €5.58 Earnings per share = €0.404 ∴ Price-Earnings Ratio = €5.58 ÷ €0.404 = 13.8x On its own, the P/E ratio doesn’t tell you much; however, it becomes extremely useful when you compare it with other similar companies. … For example, if you accidentally compared higher growth firms with 0HLE, then 0HLE’s P/E would naturally be lower since investors would reward its peers’ higher growth with a higher price. … Alternatively, if you inadvertently compared less risky firms with 0HLE, 0HLE’s P/E would again be lower since investors would reward its peers’ lower risk with a higher price as well.

Simply Wall St -

Is There Now An Opportunity In Banco Santander SA (LON:0HLE)?

It’s trading around 9% below my intrinsic value, which means if you buy Banco Santander today, you’d be paying a fair price for it. … Banco Santander’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. … Will you have enough confidence to invest in the company should the price drop below its fair value?

Simply Wall St -

Company Info

Description

Banco Santander, S.A., together with its subsidiaries, provides various retail and commercial banking products and services for individual and corporate clients worldwide. It offers demand and time deposits, and current and savings accounts; mortgages, consumer finance, auto finance, and personal loans; export and agency finance, trade and working capital solutions, syndicated corporate loans, and structured financing; debt capital markets and global markets services; and debit and credit cards. The company also provides cash management, transactional, payrolls, and wealth management services. In addition, it is involved in the corporate banking, treasury, and investment banking activities; and real estate investment, leasing, securitization, fund management, e-commerce, technology services, air transport, renting, insurance brokerage, aircraft rental, payments and collection, securities investment, financial advisory, sports, electricity production, and Internet activities. Further, the company offers asset management and private banking services, as well as mobile and online banking services. It operates through a network of 13,217 branches. The company was formerly known as Banco Santander Central Hispano S.A. and changed its name to Banco Santander, S.A. in June 2007. Banco Santander, S.A. was founded in 1856 and is headquartered in Madrid, Spain.

Details
Name: Banco Santander, S.A.
0HLE
Exchange: LSE
Founded: 1856
€84,218,478,897
16,229,735,942
Website: http://www.santander.com
Address: Banco Santander, S.A.
Santander Group City,
Av. de Cantabria s/n,
Madrid,
Madrid, 28660,
Spain
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
BME SAN Common Shares Bolsas y Mercados Espanoles ES EUR 09. Jan 1980
OTCPK BCDR.F Common Shares Pink Sheets LLC US USD 09. Jan 1980
DB BSD2 Common Shares Deutsche Boerse AG DE EUR 09. Jan 1980
XTRA BSD2 Common Shares XETRA Trading Platform DE EUR 09. Jan 1980
LSE BNC Common Shares London Stock Exchange GB GBP 09. Jan 1980
ENXTBR SANTA Common Shares Euronext Brussels BE EUR 09. Jan 1980
BIT SANT Common Shares Borsa Italiana IT EUR 09. Jan 1980
WBAG SAN Common Shares Wiener Boerse AG AT EUR 09. Jan 1980
BMV SAN N Common Shares Bolsa Mexicana de Valores MX MXN 09. Jan 1980
WSE SAN Common Shares Warsaw Stock Exchange PL PLN 09. Jan 1980
BATS-CHIXE SANE Common Shares BATS 'Chi-X Europe' GB EUR 09. Jan 1980
NYSE SAN ADR EACH 1 REPR 1 ORD EUR0.50 New York Stock Exchange US USD 30. Jul 1987
DB A1ZH8V 6.375%-FRN PERP USD200000 'REGS' Deutsche Boerse AG DE USD 09. May 2014
DB BSDK ADR EACH 1 REPR 1 ORD EUR0.50 Deutsche Boerse AG DE EUR 30. Jul 1987
LSE 0HLE ADR EACH 1 REPR 1 ORD EUR0.50 London Stock Exchange GB USD 30. Jul 1987
Number of employees
Current staff
Staff numbers
189,886
Banco Santander employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/22 22:44
End of day share price update: 2019/04/15 00:00
Last estimates confirmation: 2019/04/22
Last earnings filing: 2019/02/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.