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Santander emerges as Europe's most resilient bank to geopolitical shock, per S&P analysis

Executive summary: S&P analysed the exposure of major European banks to geopolitical‑sensitive sectors and concluded that Santander is the least exposed, while BBVA and CaixaBank are the most exposed via corporate lending. The differential exposure influences investor perceptions of credit risk and may affect capital allocation and pricing of bank stocks amid rising geopolitical tensions.

Who is involved: S&P (rating agency), Santander, BBVA, CaixaBank.

Likely next: Banks may review corporate lending strategies; regulators could scrutinise sector concentrations; investors might tilt portfolios toward the relatively shielded Santander.

S&P evaluated European banks' exposure to sectors most vulnerable to geopolitical conflicts and found Santander to be the best protected. In contrast, BBVA and CaixaBank showed the highest vulnerability due to their corporate loan books. The assessment highlights divergent risk profiles among the region's largest lenders.

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