£6.05 is €7.65 and $10.28, according to converter. 6.05 GBP to USD
Needs to catch up to Europe
Share price in Madrid is 7.67 euros and in the USA its 10.28, think the UK market needs to catch up, or do you think its better to invest in Spain, for Santander, the UK market always seems to lag behind both these markets.
£6 and worth it...
Once again the share price has broken £6. I still regard up to £7 as a buying opportunity, in spite of many doubters. The more I watch Santander the more resilient it seems to become. Part of this is geographic spread, and part good involved management, with each national bank allowed considerable freedom. I was surprised to learn that the UK arm is on a par with Brazil, quite a brave and worthwhile investment.
Fitch comments on banking sector
Fitch comments lift banks Ratings agency Fitch gave the banking sector a rise today after it said that so-called Viability Ratings (VRs) on banks in European developed markets have improved since the start of 2014, "indicating early signs of recovery in European banks' intrinsic creditworthiness". VRs reflect Fitch's opinion on the likelihood that an entity will fail. Improving macroeconomic conditions were partly responsible for this improved outlook, Fitch said, with banks' restructuring plans having contributed to the "stabilisation" of the Eurozone. For the first time since 2009, no country in the Eurozone is on Fitch's 'Negative Outlook'. Also adding to the gains were changes in accounting standards, meaning the way banks recogise losses will move from an "incurred loss" to an "expected loss" approach.
Santander set to introduce blanket LTI cap on residential loans Santander for Intermediaries is set to introduce a blanket loan-to-income cap on all residential loans. While the lender would not confirm the level of the LTI cap, a source close to the lender said it will be set at 5 times income on 25 July. Presently, the lender bases LTI ratios on applicant credit scores but from Friday it will apply the 5 times income cap across all residential lending. This means some borrowers will find they can take a bigger loan than previously, while others will see the loan they are eligible for is smaller. A spokeswoman for Santander says: “On Friday 25 July 2014, Santander is making a number of changes to its residential lending policy in line with competitors and current market conditions. “As we have said previously, our average new business income multiplier currently is 2.85 nationally, and in London it is 3.63 and we have no reason to believe these will alter going forward, while we continue to work within the guidelines of the new regulation.” John Charcol senior technical manager Ray Boulger called the move “bizarre”. Boulger says: “Up until this change, Santander has based its LTIs on an applicant’s credit score i.e. those with better credit can obviously borrow more. “We think the impact of this will be that those with a higher credit rating, who in the past have been able to borrow up to 5.5 times income or possibly higher, will be restricted. However, people with a lower credit score can now borrow more, which seems a bizarre move.” Last month it was revealed that from October the Bank of England will state that loans above 4.5 times income must make up no more than 15 per cent of a lender’s new lending. Many of the high street lenders have moved to introduce LTI caps in the past two months. Prior to the Bank revealing its new LTI rules, Lloyds Banking Group and Royal Bank of Scotland moved to cap loans over £500,000 at 4 times income. RBS has also announced an LTI limit of 4.99 times income for all buy-to-let applicants. This week Nationwide announced that it would apply a limit of 4.75 times income across all residential applications.
22 Jul '14
The Brazilian Connection
http://seekingalpha.com/article/2329545-the-major-catalyst-for-santander-that-nobody-is-talking-about? From seekingalpha, but it contains some interesting views.
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