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IBERIAN DAILY 25 APRIL + 1Q’23 RESULTS. HIGHLIGHTS AND REST OF PREVIEWS (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ENAGÁS, IAG, SANTANDER.

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 1Q’23 results to be released over the coming days in Spain.

The calendar sets the pace
European stock markets ended flat in a session marked by 1Q’23 results presentation calendar (this week the big tech companies like Microsoft, Meta and Amazon.com will release their earnings). In the Euro STOXX, the best-performing sectors were cyclicals like Chemicals and Energy, whereas Technology and Telecoms saw the biggest sell-offs. On the macro side, in Germany, April’s IFO rose less than expected due to the drop in the current conditions component. From the ECB, Schnabel and Villeroy left the door open to two +25bps rate hikes. In the US, the Chicago Fed national activity index for March was in line with expectations, whereas the Dallas manufacturing index contracted more than expected in April. On the geopolitical front, Europe and Japan are reluctant to support the US proposal to fully ban exports to Russia. In US business results, Coca-Cola was in line, Whirlpool and First Republic Bank easily beat expectations, but the latter revealed US$ 100 Bn of deposit outflows.
What we expect for today
The European stock markets would open with drops of -0.3%, with a worse performance of cyclical stocks such as banks and technology companies. Currently, S&P futures are down -0.35% (the S&P 500 ended +0.40% higher vs. the European closing bell). Volatility in the US decreased (VIX 16.89). Asian markets are mixed (China’s CSI 300 -0.90% and Japan’s Nikkei +0.15%).
Today in Mexico we will learn February’s IGAE activity index and in the US March’s new home sales, April’s consumer confidence and the Richmond manufacturing index. In US business results, PepsiCo, General Motors, Moody’s, McDonald’s and 3M, among others, will release their earnings. In debt auctions, Germany will place € 6 Bn in bonds due 2025.


COMPANY NEWS

SANTANDER. 1Q’23 results beating expectations in fee revenues, trading revenues and CoR. Slightly worse in NII and costs. BUY
The 1Q’23 results were slightly worse than expected in NII (+15% vs. 1Q’22 and 15.5% consensus), with volumes growing +4% vs. 1Q’23 and significant loan repricing despite the higher beta. Very dynamic fee revenue performance (+8% vs. 1Q’22 and vs. 5.8% expected), which along with high trading revenues underpinning Total Revenues (+13.2% vs. 1Q’22 and vs. +11.7% consensus). Costs were slightly worse than expected, and CoR slightly better (1.05% and vs.