Brexit, Brazil and Oil Don’t Add Up to Disaster For Santander

Paul J. Davies –  The Wall Street Journal, 06/28/2016

Brexit, Brazilian economic turmoil, U.S. oil and gas debt, Southern Europe’s bad-debt pile: there is a whole litany of pitfalls for banks out there. Unfortunately, for Banco Santander, it is exposed to each and every one.

The Spanish lender’s stock has been hit hard in the wake of the U.K. vote to leave the European Union. After staging a slight recovery Tuesday it is still down about 20% since the referendum. Santander’s earnings are likely to suffer, but not as much as this price fall implies.

Santander moved to calm market fears late on Monday by saying the Brexit vote wouldn’t have a material effect on this year’s results and reiterating its financial targets.

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