€1.3bi, EPS 0.112
In the press
Comments
- Does not include 2 pending capital gains: €385mi (Altamira) and €730mi (SCUSA). Amounts were parked in the balance sheet till decision for usage is taken
- I hate how so few information comes from the Q&A of results presentation. Why could no one (or the investor relationship VP select) ask these 3 questions:
- When will dividends be back all cash? What are the plans to support €0.60?
- In several presentations SAN states a capital surplus of €25bi. Can this be elaborated, in particular its utilization. Why is the Brazil 25% OPA financed by issuing new shares?
- Effective tax rate in Spain was 29.2%, 130bpp lower than Q1 2013, and 350bpp lower than Q4 2013. To continue? Link with DTA utilization?
- UK shining (and that means Ana Botin strengthens her chances to become group chairman when her farther retires)
- Spain back from the dead but still a long way to improve. The full 2014 guidance for Spain is €1.1bi earnings. Based on Q1 figures can really be reached.
- Poland, Chile and SCF OK
- US and Mexico with huge costs for growth. In particular SCUSA (and that is why I am pesting on the missing SCUSA specific presentation). UPDATE: SCUSA presentation is available: +61% YoY growth for loan portfolio and +150% for new loans! This is done at constant operating costs (QoQ), with an efficiency ratio at 13.8%!!! NPL down. Provisions up because of upfront provisions building
- Restructuring (merge) in Spain and Poland starting to gives results
- Brazil is a disappointment even at constant exchange rates.
Related News:
- 2014/04/28. Bloomberg article about tomorrow earnings (EN)
- 2014/04/25. 6 Q1 analysts estimates (EN)
- 2014/04/23. Banco do Brasil forecasts for Santander Brasil Q1 2014 net earnings: R$1.36bi, -3.7% QoQ (PT)
- 2014/04/11. Marin: Loans in Spain increased in Q1 2014 for the first time for 5 years: +€450mi (ES)
The last 3 quarter earnings (Q2, Q3, Q4 2013) were €1.05bi, €1.055bi, €1.06bi.
2013 was balance sheet improvement
Guidance for 2014 and after is return to profitability and growth.
An important point is that Q1 2014 capital will be reported as per BIS III rules.
The activation is progressive to 2019.
In 2014, there is the ordinary capital minimum going from 3.5% to 4%, and 20% of the "soft" (not guaranteed to be utilizable) DTA excluded from capital. The €4bi DTA in Brazil is guaranteed by the state and fully kept in capital. Then we have €10bi in Spain. There have been the new Spanish regulations of Dec 2013. Part of €10bi (guaranteed by the state) to be kept in capital (only information I saw is 50-70bpp fully loaded). 20% of the rest (170-190bpp) will be excluded from capital. All this to say that data from competent people is needed and this should be in Q1 2014. Also interesting related to that are the earnings in Spain and effective tax rate in the country. And not sure how the 20% applies in 2014: beginning of the year? progressively? end of 2014?
Later in 2014, we should get positive news from uniformized RWA calculation rules due to EZ banking union.
Do does any one know if exchange rates for any given quater are taken at the end of that quater or are they somehow averaged over the whole quater? That could have a big imapct on what 1Q looks like for SAN.
ReplyDeleteIncome statement is reported at average exchange rates for the period, balance sheet at period end exchange rates.
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