Santander Valuation Hinges on Regulatory Setbacks and Crypto Exposure

Banco Santander (BME:SAN) has released its half-year earnings for 2026, reporting a net income of €8,973 million. The bank also disclosed its holdings in leading Bitcoin and Ethereum exchange-traded funds. This comes on the heels of a strong run in Banco Santander's stock, with an 18.67% 90-day share price return and a five-year total shareholder return of 341.90%. The recent momentum has been building over both shorter and longer horizons.

Analysts are now weighing in on the bank's valuation, with some suggesting it may be slightly overvalued at €12.21. However, an alternative view using the SWS DCF model points to a 34% discount from its estimated fair value of €18.71. This split between concerns and optimism around Banco Santander has investors thinking about potential regulatory setbacks related to the Webster Bank deal and pressure on loan quality in key markets such as Brazil and Mexico.