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SANTANDER: 4Q’19 RESULTS (ANÁLISIS BANCO SABADELL)

4Q'19 vs. 4Q'18 Results:
N.I.I.: € 8.841 Bn (-2.4% vs. -1.6% BS(e) and -2.1% consensus);
Total Revenues: € 12.592 Bn (+0.4% vs. +0.2% BS(e) and -1.4% consensus);
Operating Profit: € 6.621 Bn (+0.2% vs. -1.8% BS(e) and -2.5% consensus);
Net Profit: € 2.783 Bn (+34.6% vs. +25.3% BS(e) and +22.3% consensus);
4Q'19 vs. 3Q'19 Results:
N.I.I.: € 8.841 Bn (+0.4% vs. +1.3% BS(e) and +0.7% consensus);
Total Revenues: € 12.592 Bn (+1.0% vs. +0.8% BS(e) and -0.8% consensus);
Operating Profit: € 6.621 Bn (-1.8% vs. -3.8% BS(e) and -4.5% consensus);
Net Profit: € 2.783 Bn (+455.5% in 3Q'19 vs. +417.1% BS(e) and +405.0% consensus);

In its 4Q’19 Results, NII came in below expectations (due mainly to Spain and the US), while fee revenues fared better than our estimates and more in line with the consensus. In general, we stress a better performance in the rest of headings. In operating Net Profit, only Brazil and SGP came in slightly below the consensus, while the rest of regions came in better. Very good organic generation in FL CET1 of +31bps on the quarter to 11.42% from 11.07% as of 3Q’19(vs. 11.25% BS(e)), which was SAN’s guidance. We expect a positive reception. Conference Call 10:00 (CET). BUY. T.P. € 4.70/sh. (upside +32.36%).