Sign in

    Alvaro Serrano Saenz de Tejada • Morgan Stanley

    Alvaro Serrano Saenz de Tejada's questions to Banco Santander SA (SAN) leadership

    Alvaro Serrano Saenz de Tejada's questions to Banco Santander SA (SAN) leadership • Q2 2025

    Question

    Alvaro Serrano Saenz de Tejada questioned what will drive the RoTE from 16% in H1 to the full-year target of 16.5%. He also asked for the outlook on when provisions in Brazil are expected to peak.

    Answer

    CEO Héctor Grisi Checa pointed to the Q2 RoTE of 16.2% and attributed future growth to increased fee income from deeper customer relationships driven by the 'One Transformation' model. Regarding Brazil, he stated the bank took a conservative provisioning stance due to high interest rates, but expects the situation to improve as rates fall. CFO José García Cantera added that the consumer business will see better returns as new, higher-profitability loans replace older ones, and that the Brazil provision was a prudent adjustment, with the underlying cost of risk expected to remain below 5% for the year.

    Ask Fintool Equity Research AI

    Alvaro Serrano Saenz de Tejada's questions to Barclays PLC (BCS) leadership

    Alvaro Serrano Saenz de Tejada's questions to Barclays PLC (BCS) leadership • Q2 2025

    Question

    Alvaro Serrano Saenz de Tejada asked about Barclays' capital position, questioning the balance between increasing shareholder distributions and retaining firepower for potential M&A. He also inquired about the Investment Bank's outlook, specifically whether a pickup in banking fees could offset a potential normalization in markets revenue in a lower volatility environment.

    Answer

    Group Finance Director Anna Cross stated the capital position is as expected and the capital hierarchy remains intact, prioritizing regulatory requirements, then shareholder distributions, and finally organic investment in UK businesses. Group Chief Executive C.S. Venkatakrishnan explained the Investment Bank's strength comes from both sustainable structural improvements and cyclical tailwinds. He noted that headwinds for banking fees are dissipating with increased deal activity, and he expects the bank to benefit from longer-term positioning in markets.

    Ask Fintool Equity Research AI