Banco Santander SA is now the most important financial institution in continental Europe by market worth, leapfrogging UBS Group AG.
The Spanish lender has seen its shares soar in worth this yr, propelling it to a market capitalization of €91 billion ($104 billion). In the meantime, UBS shares have tumbled because the financial institution faces the potential for dramatically larger capital necessities in Switzerland, shrinking its valuation to €86 billion.
Britain’s HSBC Plc stays as Europe’s greatest financial institution with a market worth of £139 billion ($184 billion.)
Whereas Santander shares have taken a success in latest weeks, the inventory continues to be up extra 30% this yr, using a wave of investor optimism concerning the well being of European banks and the potential for extra large public spending within the area. In February, the financial institution introduced report revenue and plans to purchase again €10 billion of its shares over the approaching years.
Banks stay as Europe’s greatest sector because the begin of the yr. The Stoxx 600 Banks Index has rallied 15%, whereas the broader benchmark is flat. Lenders on the continent will kick off earnings season subsequent week, with traders centered on the financial hit from the US commerce battle.
This story was initially featured on Fortune.com
