Madrid, January 19 (Europe Press) –
Credit Suisse has placed Santander among its favorite European banks given its potential for revaluation and given the prospects for higher net interest margins in developed markets and improvement in trade dynamics, particularly in Mexico.
Analysts believe that inflation in Latin America and seasonality in developed markets will drive cost growth. Having reached the CET1 target set by the management team, Credit Suisse believes Santander’s dividend could exceed the current 40% yield, although it is still waiting for the bank’s presentation at Investor Day, next February 28th.
This is reflected in an analysis on European banking prepared by Credit Suisse analysts in which they convey their expectations that fourth-quarter results for the sector in Europe show continued improvement in interest margins and resilient credit quality.
Along these lines, they believe that dividend announcements and share repurchase programs can be a positive catalyst and hope that the outlook for 2023 shared by the sector during the presentation of results will be “constructive” on income development and asset quality.
Thus, in addition to Santander, Credit Suisse also counts among its favorites ABN Amro, BNP and Unicredit for their total returns and Lloyds for their UK rate hikes.
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