Banco Santander (XMCE:SAN, Financial) also reported mixed results in its latest quarter. Although operating revenue and net interest income were lower than expected, operating costs were in line with expectations, and credit costs were less than anticipated. Santander’s balance sheet remains strong, as the company has continued to strengthen its liquidity, capital and non-performing loan coverage. Deposit growth was strong in Spain (+10%), which management attributed to customers seeking out quality banks as a result of the recent series of bank failures. In addition, certain banks are under scrutiny by the Bank of Spain for uneconomic deposit pricing. We believe that Banco Santander’s strength and quality will serve both its customers and its investors well.
From David Herro's International Fund Q1 2013 commentary.
From David Herro's International Fund Q1 2013 commentary.
