EUR 100.00 For Business Accounts Only

IBERIAN DAILY 02 FEBRUARY + 4Q’21 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACCIONA, ACCIONA ENERGÍA, FERROVIAL, SANTANDER, SIEMENS GAMESA, TÉCNICAS REUNIDAS, TELEFÓNICA.

At the end of today’s report, and during the entire results season, we will include a presentation with positive and negative results highlights and previews for the 4Q’21 results to be released over the coming days in Spain.

MARKETS YESTERDAY AND TODAY

The IBEX secures 8,700 points
Solid performance on European stock markets, with gains of more than +1.0% in view of the strong macro releases and positive surprises in results. In the Euro STOXX, the best-performing sectors were Basic Materials and Banks, whereas Real Estate was the only sector posting losses and Telecoms closed with the smallest gains. On the macro side, in Germany January’s unemployment fell much more than expected, while December’s retail sales contracted more than expected. In the euro zone, January’s final manufacturing PMIs were cut slightly (still at 5-month highs) due to the negative surprise in Italy, whereas the unemployment rate fell to below pre-pandemic levels. In the US, January’s manufacturing ISM fell slightly less than expected, but the prices paid component once again had a noteworthy rise. From the Fed, Harker expressed his support of four +0.25% rate hikes on the year, opening the door for the Fed to sell assets on its balance sheet in the future. In US business results, General Motors, Exxon Mobile and Alphabet (Google) beat expectations, Stanley Black&Decker was in line, and Starbucks, Electronic Arts and PayPal disappointed.
What we expect for today
European stock markets would open with gains close to +0.5%, with the technology sector recovering ground. Currently, S&P futures are up +0.58% (the S&P 500 ended +0.53% higher vs. the European closing bell). Volatility in the US fell (VIX 21.96). Asian markets are climbing (China’s CSI 300 closed and Japan’s Nikkei +1.68%).
Today in the euro zone we will learn January’s preliminary inflation, in the US January’s ADP private employment survey and in Brazil the Selic interest rates meeting. In US business results: Dr. Horton, AbbVie, MetLife, QUALCOMM and T-Mobile, among others, will release their earnings. Debt auctions: Greece (€ 625 M in 3M t-bills).

COMPANY NEWS
SANTANDER. Better 4Q’21 Results in all margins but the banks keeps its FL CET’22 and pay-out’22 targets unchanged.. BUY.
4Q’21 Results came in better than expected. Core revenues grew ~+9% vs. 4Q'20 and vs. +6.2% thanks to greater commercial dynamism in North and South America. This partially explains the +2.4% cost growth vs. expectations. Very good CoR at 80bps (vs. ~90bps BS(e)). By divisions, the Operating Net Profit came in ~+20% higher than expected in all regions with the exception of the UK (-11%), Poland (-23%) and Brazil in line. The FL CET came in at 12.12% (~12% PF consensus of inorganic operations) and vs. 11.85% in 3Q’21. Guidance’22: (i) mid -single digit revenue growth (vs. +2% consensus), (ii) ~45% c/i (in line with the consensus), (iii) ~13% RoTE'22 (vs. 12.5% BS(e)) and (iv) the bank reiterated its 12% FL CET1 FL (~BS(e)). The company announced an identical pay-out policy’22 to that seen in 2021 (40%: 20% in cash+20% buy back; 6% estimated yield) that could be raise in the long-term. Conference Call at 10:00 (CET). We foresee a neutral market reaction.