3Yr·

Can European banks like Santander benefit from rising interest rates, or has this already largely happened?

I like Santander, besides solid core business in Spain also active in UK and Latin America. Moreover, kgv lower than the peer group average, decent dividend.

2 Comments

Enrique@Dividenden_Monteur

3Yr

On the subject of rising interest rates: This does not mean that the banks automatically earn more money, this only applies to new loans or loans that have to be renegotiated if they were only fixed for a certain time. Core business in Spain: What is the debt and GDP in Spain? Would be for me a red rag, see the real estate crisis in Spain in 2008. And the business in Latin America is just also rather uncertain because emerging markets. Since I would rather invest in something else from the financial sector, HSBC if it should be European or just a global player like JP Morgan Only my opinion 🤝

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Philipp@Felipe13

3Yr

@Der_Dividenden_Monteur thanks for your assessment. basically, i consider Santander with Kgv 5 to be more favorably valued than the peer group, which is why i became aware of the bank. broadly diversified due to Latin America and UK activity banks can hardly profit from rising interest rates in the short term, but they can in the long term.

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