Banco Santander (ES:SAN), or Santander Group, is one of the oldest financial institutions in Spain and is currently serving around 160 million customers.
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The group will report its first-quarter earnings for the fiscal year 2023 on April 25. According to TipRanks, the consensus EPS forecast for Q1 is €0.14 per share, which is similar to the EPS of the same quarter in the prior year.
In the year 2022, the group reported record numbers in its results, driven by improved customer activities and better cost control measures. The attributable profits for the year were up by 18% to €9.6 billion. The bank achieved a RoTE (return on tangible equity) of 13.4%, which was above the bank’s target of 13%.
For 2023, the bank is confident of repeating another successful year of profits and double-digit revenue growth. The bank is also targeting a RoTE of above 15% for 2023. On its investor day, the company announced its RoTE target of 15-17% for 2023-2025.
The group also outlined its payout policy for its shareholders, which will be increased from 40% to 50% over the next two years. This includes both dividends and share buybacks.
Ahead of the results, analysts are bullish on the stock and have reiterated their ratings. Ignacio Cerezo from UBS and Chris Hallam from Goldman Sachs predict more than 40% of the upside in the share price.
Santander Share Price Forecast
According to TipRanks’ analyst consensus, SAN stock has a Moderate Buy rating, based on seven Buy and five Hold recommendations.
The average target price is €4.74, which has an upside potential of 34% from the current price level. YTD, the stock has been trading up by 24%.
BBVA Stock Price Prediction
Santander’s competitor bank in Spain, Banco Bilbao Vizcaya Argentaria, S.A. (ES:BBVA), will also report Q1 2023 earnings this week on April 27. On TipRanks, the consensus EPS forecast is €0.28 per share, higher than the previous year’s EPS of €0.24 in the same quarter.
BBVA stock has generated a return of almost 50% in the last year.
Based on 13 recommendations on TipRanks, BBVA stock has a Moderate Buy rating. It includes six Buy and seven Hold ratings. The BBVA target price is €7.88, 16.5% higher than the current price level.
