Santander exceeds €100 billion valuation, leading EU banks

Banco Santander SA has become the first bank in the European Union to be valued at over €100 billion, reaching €100.3 billion ($108 billion) for the first time in nearly ten years. The bank's shares increased by 1.8% to €6.62 on Tuesday. This achievement follows a significant rise in the share prices of European banks. The increase began after the European Central Bank ended its negative interest rate policy in 2022. This change has greatly improved bank profitability and led to increased investor payouts. While Santander is the only EU bank over the €100 billion mark currently, other banks like BNP Paribas and Intesa Sanpaolo are approaching this valuation. Outside the EU, UBS Group AG from Switzerland has a higher market value, and HSBC has also reached that level in recent years. The outlook for European banks has improved due to recent public spending announcements. Analysts from JPMorgan express a positive view on the sector, highlighting strong fiscal plans in Germany and the EU. Santander has seen its stock price soar nearly 50% since the start of this year, making it one of the top performers in European banking. The bank is also planning to increase the money returned to investors, with a focus on growth opportunities in the Americas, according to Chairman Ana Botin.