10 Best Bank Penny Stocks to Buy According to Hedge Funds

3. Banco Santander, S.A. (NYSE:SAN)

Share Price as of the close of January 3: $4.49

Number of Hedge Fund Holders: 15

Banco Santander, S.A. (NYSE:SAN) is a Spanish multinational financial services company, headquartered in Santander. It operates as a retail and commercial bank, offering services such as deposits, mutual funds, current and saving accounts, loans, and various other financing solutions.

The company has added five million new customers over the past 12 months to take its tally to 171 million customers across 16 markets. It is among the few European banks with a significant global presence and is known for its focus on delivering diversified services to meet consumer needs.

Automation has been integral to Banco Santander, S.A. (NYSE:SAN)’s success, with the company establishing a standardized model of experience across all markets. Around 60% of its products and services are now available digitally to all customers.

In October 2024, SAN expanded in the United States through the launch of its digital banking subsidiary, Openbank. This is the group’s first nationwide retail banking offering outside the Northeast American Branch Network. The platform combines modern cloud architecture with core banking systems, enabling an easier account opening process.

Banco Santander, S.A. (NYSE:SAN)’s financial performance remains robust. During its recent Q3 2024 earnings call on October 29, the company reported a profit of €3.3 billion, up 12% year-over-year at the back of a growing client base as it focuses on improving customer experience. Profit for the first nine months of 2024 reached €9.3 billion, supported by strong revenue growth across regions. SAN’s balance sheet is also stable, with a robust credit quality and strong capital ratio. The cash dividend in the fiscal year 2024 is expected to be 39% higher than last year.

Solid financial fundamentals and continued customer growth are earning SAN considerable investor confidence. According to Insider Monkey’s database for Q3 2024, 15 hedge funds had investments in the company, up from just 9 at the end of Q2. It is one of the best bank penny stocks to buy according to hedge funds.