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The Price Is Right for This Bank

Ultimately, we think investors will realize the true earnings power of narrow-moat Banco Santander Brazil.


Tim Puls: Today, we're talking about Banco Santander Brazil, a 4-star stock, which trades under the ADR symbol BSBR. In our view, Banco Santander has established a narrow economic moat that is based primarily on a cost advantage. Its national distribution network and breadth of product offerings allow for it to create sticky customer bases that bring low-cost deposit funding to the bank.

Additionally, Banco Santander Brazil benefits from its advantageous market position in a concentrated Brazilian market, where soft price competition among major competitors allows for attractive returns for all.

Timothy Puls does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.