Banco Santander Share News (BNC)

Some analysts do not appear too convinced about the first quarter results presented by Banco Santander in spite of higher than expected top-line figures. The results did not do much to improve market sentiment as the stock reacted with a 3.38% loss in the immediate aftermath.Link Securities stated that the bank presented some lacklustre results while Espirito Santo Investment analyst Juan Pablo Lopez said that investors remain very cautious on Spain and that the bank's earnings fell in other major markets (outside of Spain).Banco Santander reported 23.9% lower first quarter net earnings at €1.604bn, more or less in line with estimates. Analysts at Bankinter explained that increased revenue allowed the bank to beat expectations in spite of higher provisions. The problem was that results from business areas that previously offset Spain's weakness were also falling:Latin America: Attributed earnings fell 12% to €647m.Continental Europe: Attributed earnings fell 34% to €584m.United Kingdom: Attributed earnings fell 39% to €306m. Analysts at Link Securities noted the decline seen in the United Kingdom as a result of higher finance costs and the impact of low interest rates on product margins."There does seem to be a strange contrast between the high level of unemployment and the surprisingly low level of delinquencies on mortgages," Georg Grodzki of Legal & General in London told Bloomberg. "This raises the issue of whether loans have been amended to make them look current when in fact they are distressed."Santander Chief Executive Officer Alfredo Saenz's explanation is that Spanish culture partly explains why defaults remain low. "Mortgages get paid in good times and in bad," he said.JP Morgan lowered its price target for Santander to €6.50 from 6.90. The US brokerage firm said that the more than €600bn of outstanding home loans on the books of lenders may be the "next elephant" for Spain as unemployment leads to defaults.By 11:48, shares of Santander are up 0.21% to €4.76.MG