(Bloomberg) -- Banco Santander SA surpassed BNP Paribas SA as the European Union’s largest bank by market value, a title it last held more than four years ago.

A 7.5% drop in BNP Paribas shares after the stock traded without the right to a lofty annual dividend sent its market capitalization below that of its Spanish peer, whose shares also declined on Tuesday. Both banks are valued at around €76 billion ($83 billion).

Boosted by resilient earnings and increased capital returns, Santander shares are up 28% so far this year, while BNP Paribas is only 7.8% higher.

The Spanish lender last month reported a 10% jump in first-quarter revenue, led by higher income from lending and said it is on track to meet its goals and possibly exceed some of them.

Deutsche Bank  AG analyst Alfredo Alonso said on Tuesday he remains optimistic on Spanish banks, despite lower upside potential.

“The banks still seem attractive, given good delivery momentum and room for consensus upgrades,” Alonso wrote in a note. “We expect the large, international banks to benefit from diversification and superior growth versus European peers, in general.”

Read more: Spanish Banks Defy Trend as Santander, BBVA Get Boost From Rates

Alonso increased his price target for Santander to €5.45 from €4.85 and said he prefers the stock to Spanish peer Banco Bilbao Vizcaya Argentaria SA. “Despite the bank’s complexity and challenges lying ahead, good trends should allow the bank to reach its targets, likely with increasing net profit over the next few years,” he wrote.

Following a strong quarter and with mergers & acquisitions back in the spotlight, Italian and Spanish lenders are “still the place to be for bank investors,” Keefe, Bruyette & Woods analyst Hugo Cruz said last week.

UniCredit SpA’s market capitalization rose above €60 billion earlier this month, making it one of four euro-area banks to exceed that threshold.

--With assistance from Joe Easton.

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