Interesting topic Carlo - I’ve been in Santander since inception in 1999 and seen a steady rise, until this year, which provides quite a contrast to much of my personal portfolio.
However, the 20% drop so far this year merits closer examination to determine causation.
The debt crisis involving many European countries, various FK/Libor scandals and of course the requirements for PPI provisions have piled further pressure on banking giving new investors a taste (and sharp warning) of how politicians and regulators can have considerable impact in this sector.
I’m still going to hang in there though, as looking at the spread of their profit base, mainly from Latin America then the EU, UK and USA in descending order, my analysis shows a decent opportunity for long-term growth with their, primarily, Brazilian exposure far enough away from the slow-growing EU and UK economies.
Only time will truly tell with this stock - but as I’m already in I’m staying - notably, I track various other brokers in a database of mine and keep a keen eye on their ‘buys and sells’, right now all their pointers are saying that Santander is a strong buy!