Erste Group Downgrades Banco Santander (SAN) to Hold

Erste Group analyst Hans Engel downgraded Banco Santander S.A. (NYSE: SAN) from Buy to Hold.

The analyst comments "The Group expects revenue growth in the mid-single-digit range, accompanied by a reduction in total operating costs. Banco Santander has established a roadmap through 2028, in which the bank aims for a return on equity of over 20% and a profit of more than EUR 20 billion. As a result, profit is expected to rise at double-digit percentage growth rates in both 2027 and 2028. However, the persistently high interest rate environment in Brazil is placing a heavy burden on borrowers and delaying the normalization of non-performing loans. In Europe, we are seeing signs for a slowdown in credit growth due to higher interest rates."

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