Analysis of Santander share price

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Elements that can influence the price of this asset:

Analysis N°1

We would pay careful attention to the development of the micro financing sector. Santander in fact tends to develop these services by offering adaptable financing to its lower income clients.

Analysis N°2

Of course, all the mergers and acquisitions completed by Santander should be followed. This particularly concerns company acquisitions of which the headquarters is situated abroad and which could assist in the geographical development of this company.

Analysis N°3

Banking activity is also directly linked to the world economic growth and this particularly concerns banks such as Santander, Therefore, when completing your fundamental analysis we recommend you carefully follow all the economic and financial data of the Euro zone as well as the countries or geographical zones where Santander is well established. 

Analysis N°4

The banking activity sector is also one of the most competitive. It is therefore primordial to integrate a complete study of the competition including the major competitors with your fundamental analysis, as detailed above, with financial information on each of them and their respective stock market situations in this sector.

Analysis N°5

Finally, you should of course monitor the movements of the interest rate for the Euro zone which remains one of the major threats as much for industry as for the banking sector. This threat has become more apparent since the recent Brexit problem. It is therefore important to closely monitor announcements and major publications by the ECB that you will find on the economic calendar of your online broker.

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About the Santander Group:

The Santander group, or Banco Santander, is the leader of the Spanish banking sector. Its activities can be classified into three main sectors starting with of course its commercial banking activities, operations and services, plus the investment banking sector including finance and markets, and finally asset management and private banking activities.   

The major part of this group’s income comes from the United Kingdom and continental Europe, as well as Latin America and the United States. It currently manages no less than 660 billion Euros of outstanding credit and 600 billion Euros of deposits.


The major competitors of Santander:

The banking group, Banco Santander, is currently one of the bank sector leaders in Spain. But it is also trying for a major position on the European market and, with this aim, faces considerable competition from other large banking groups. Here we offer you the opportunity to learn more about the major European competitors to Santander in 2016.

The top 8 of the largest European banks in 2016 are as follows:

By analysing changes in this list and the financial accounts of each of these competitors to Santander you will have a lot of useful information that will assist you in completing a comprehensive fundamental analysis of this stock market share.


The major partners of Santander:

To conclude here is a summary of the major partnerships implemented by the Santander Group during recent years.


Different subsidiaries of the Banco Santander group:

The Spanish group Banco Santander has a number of different subsidiaries that it is important to know about to be able to identify the different sectors of its activity and its reach over the international stock markets.

The Banco Santander group also holds a 7.57% shareholding in the company Banci de Galicia y Buenos Aires SA in Argentina and 4% of the shares of the Commerzbank AG in Germany, 1.5% of the French banking group Société Générale and 30.21% of the Spanish company Antena 3.


Analysis of the Santander share price:

The price of Santander shares is quoted on the NYSE Euronext in Amsterdam and the rate is included in the calculations of the Euro Stoxx 50.


Important stock market data about Santander shares:

In order to complete the information that you have read on this page such as a historical technical analysis or the detailed activities of this Spanish banking group, here is some more general information that you should also be aware of:


The advantages and strong points of Santander shares as a stock market asset:

To implement a long term strategy on the purchase of Santander shares it is of course necessary to understand and appreciate the abilities of this banking sector company to develop its growth and respond to future challenges. To assist you in analysing these aspects here is a detailed summary of the advantages of this group and its major strengths that could influence a rise in its share price.

Firstly, the Santander banking group is one of the major financial companies worldwide and shows consistently positive results from a financial perspective. We note a conspicuous increase in the turnover of this company over recent years, particularly since 2015. This company also benefits from an advantageous position on the world financial markets as it was classified 23rd in the Forbes Global list of the largest international companies of 2000.

The worldwide reputation of this banking group is another strong point for Santander. This bank is in fact well known throughout the world and boasts a positive brand reputation which is fairly rare for a business in this sector. This aspect is also highly reassuring for investors.  

The distribution of the group’s activities from a geographical standpoint is also an asset. The Santander banking group is in fact particularly well established in Europe and highly present on the markets in Portugal, Germany, Poland and Great Britain. It is also developing strongly into the United States and Brazil. Santander is equally one of the largest banking groups in South America. 

Another strength of the Santander Group lies in its capacity to ally itself with other large companies in this sector on an international level. These strong and strategic mergers and associations relate to companies that are renowned worldwide such as the Abu Dhabi Commercial Bank, the Polish bank Zachnodi WBK and Hutch Essar.

Finally, Santander boasts an excellent public image as it proposes a large range of quality services and products. In fact, due to this optimised service range Santander displays the importance it places on premier quality services and a healthy and trusting relationship with its clients. This is one of the major reasons for its success.


The disadvantages and weak points of Santander shares as a stock market asset:

We have just reviewed the factual elements that influence the increase of the Santander share price on the stock market with the different advantages offered by this banking group. However, it would be remiss to ignore the negative aspects and weaknesses of this company. Here therefore are the major weak points of this group and the possible setbacks to this group’s progress.

Firstly, and despite the positive rise in the financial accounts of 2015 and 2016, we note that the 2017 objectives were not truly attained and the growth of this company’s activities in fact show signs of slowing down which is worrying for investors and shareholders and which weigh currently on the stock market.

On the other hand, the Santander Group still depends greatly on policy decisions taken by the Euro zone. The group still maintains its headquarters in Spain and achieves the vast majority of its income from within the European Union. It is therefore highly influenced by decisions taken by the Euro zone as by decisions taken by the Central European Bank.

We also regret, despite the consequential international development efforts, the fact that the Santander Group is not well positioned on the emerging markets. Its position, particularly in Asia, remains very weak compared to its major competitors who have in fact prioritised this market. The best implanted banks in this highly promising sector of countries such as India are currently Standard Chartered Bank, Barclays Bank and the RBS.

Finally, and as with other European banks, the Santander Group is subject to all the European restrictions and regulations in terms of financial asset management and is therefore required to restrict its debt to a minimum in order to reassure its investors and shareholders in general.

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