The case of Banco Santander $SAN (+1.62%) deserves attention: +57% in the last year and +34% so far in 2025, surpassing even the "Magnificent Seven". With a P/E of 7, is it expensive or cheap?
What is fascinating is its resilience in the face of the expected rate cuts. Its strength seems to lie in several pillars:
- A massive customer base with zero-cost deposits.
- High commissions on various products
- Pension plans and mutual funds with higher margins than the competition.
- Efficient post-crisis restructuring (reduction of branches and staff).
And here comes the interesting part: despite high commissions and products that can be improved, they continue to attract customers. The neobanks, for now, have not managed to make a significant dent in their business model.
Historically, $SAN (+1.62%) 12 before 2008. Will we see those levels again? Is it an unstoppable profit machine or are there risks we are not contemplating?
What do you think? Is it worth it at these prices?
