Banco Santander: A High-ROTE Behemoth Hidden In Plain Sight

Kenio Fontes 3.17K Followers Follow Summary Banco Santander continues its transformation, focusing on technological integration, efficiency, and mitigating disruption risks, including stablecoin initiatives. Despite a 34% total return since the last analysis, SAN's long-term thesis remains intact, supported by record profits, growing NII, and an expanding customer base. Operational improvements, M&A activity, and the ONE transformation drive efficiency gains, with potential for a 20% ROTE by 2028. Valuation remains attractive at 1.7x–1.8x P/B, with a maintained buy rating and expected double-digit total returns even under conservative scenarios. MarioGuti/iStock Unreleased via Getty Images I just read the news that Banco Santander, S.A. ( SAN ) and around 20 other financial companies will be creating a new stablecoin company (the first one being USD and then euro) in the second This article was written by Kenio Fontes 3.17K Followers Follow Equity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or to connect! Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.