This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Banco Santander Helps Spain Ride Out the Storm

Stocks in this article: SAN

Banco Santander reported that 24% of its net loans to customers are in Spain. Massive provisions were made against its domestic asset base to finance the percentage of nonperforming Spanish loans.

While Banco Santander continues to power its way ahead in the global markets, its performance in Spain has been muted by a mere 7% profit in 2013. Contrast that figure with 17% profit from the United Kingdom.

The bank's shareholders would likely enjoy increased earnings if the deterioration of Spanish loans was halted, and became as lucrative as the UK loans held by the bank.

Investors who have been following the performance of Banco Santander have been pleasantly surprised by the positive news emerging from Spain. For the most part, it has been the global operations of this massive banking corporation that have been responsible for its continued prosperity.

It is now expected -- given three quarters of positive GDP growth in Spain -- that Spanish economic performance will bolster the earnings already being enjoyed on a global scale.

Presently, Banco Santander's shares have provided investors with a dividend yield of 9%. The company certainly has a big part to play in the ongoing recovery in Spain and across Latin America.

Banco Santander Performance

The share price is markedly off the highs of October 2007. The precipitous drop came between July 2008 and March 2009.

Post-March 2009, Banco Santander shares rallied to $17.30 before continuing their sustained losses through June 2012 when the trend became bullish.

The stock is moving into its second year of growth which is certainly in line with the global economic recovery and the Spanish economic turnaround, too. The stock currently has a market cap of $103.1 billion.

At the time of publication the author had no position in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs