Banco Santander S.A.NYSE
Wed, Nov. 30, 2:28 AM
- After failing multiple hurdles in the Bank of England's toughest-ever stress test, Royal Bank of Scotland (NYSE:RBS) has bolstered its capital plan.
- Some "capital inadequacies" were revealed at two other banks, Barclays (NYSE:BCS) and Standard Chartered (OTCPK:SCBFF), though neither was required to submit a revised plan.
- The test also covered HSBC, Lloyds (NYSE:LYG), Nationwide and Banco Santander UK (NYSE:SAN).
Mon, Nov. 28, 7:35 AM
- The bank had planned to separate its consumer lending operations from corporate and institutional banking in the U.K., but is scrapping that following the Brexit vote.
- Source: Bloomberg
- Instead, Santander (NYSE:SAN) is in talks with the Bank of England about how it might meet post-crisis "ringfencing" rules designed to isolate retail operations from the risker activities of banks.
- By not following through on the retail split, Santander could be giving itself more flexibility to move operations out of the U.K., if necessary.
Fri, Nov. 11, 1:01 PM
Wed, Nov. 2, 3:23 PM
- To review, Banco Santander (NYSE:SAN) - needing to raise capital - sold half of Santander Asset Management to Warburg Pincus and General Atlantic three and a half years ago in a deal valuing the unit at €2B. The operation as of June 30 had €173.6B in AUM.
- The talks come after Santander and Italy's UniCredit this summer called off plans to merge their asset management units into one firm with €353B under management.
- For Santander and other EU banks, they're turning back to asset management as traditional banking faces a tough time of it in Europe.
Wed, Oct. 26, 8:43 AM
Wed, Oct. 26, 3:49 AM
- Nintendo (OTCPK:NTDOY) revealed an operating loss of ¥5.95B in the period from March to September, while lowering its outlook and dividend.
- A hard landing! Airbus (OTCPK:EADSY) missed forecasts on supply chain issues, but the aircraft maker maintained its full year guidance.
- Brazil provided some bright side for Santander (NYSE:SAN) as a pick-up in performance lifted earnings above expectations, offsetting Brexit concerns.
- Provisions ate into the quarterly profit at Lloyds (NYSE:LYG), as the bank set aside another £1B to pay compensation for mis-sold payment protection insurance.
- Bayer (OTCPK:BAYRY) raised guidance for the full year on strong pharma results in its first quarterly scorecard since securing the Monsanto merger.
Sun, Oct. 9, 12:26 PM
- Citi (NYSE:C) says sale involves about $1.4B in assets, including credit cards, personal loans, Citi Argentina’s retail brokerage business and deposit accounts.
- Says sale won’t be material to earnings, doesn’t disclose terms.
- Citi to maintain corporate, corporate, investment banking business in Argentina.
- Yesterday, Citi said it had sold its Brazilian operations to ITUB.
Thu, Oct. 6, 8:21 AM
- The European banks have gone "from value trap to value trade," says the team at Citigroup, noting the group is the worst-performing region/sector out of 285 tracked over the last 10 years.
- Fundamentals still aren't great, they acknowledge, but bank valuations on both a relative and absolute basis make them a buy.
- ETF: EUFN
- Individual names: DB, SAN, CS, UBS, ING, BBVA
Fri, Sep. 30, 10:03 AM
- The bank is now targeting return of tangible equity of "more than 11%" by 2018 versus the previous target of about 13% set one year ago. ROTCE reported at the end of Q2 was 11.09%.
- Santander (SAN +1.3%) also lifted the target range for its cost-to-income ratio to 45-47% by 2018. Previously, the bank had aimed for below 45%.
- Not that big of a deal, suggests Citi's Stefan Nedialkov, as the market consensus for ROTCE in 2018 was just 10%.
- Santander generates about 25% of its profit from the U.K., and the bank says the economic outlook has deteriorated there. It expects ROTCE of just 8-10% by 2018 versus its previous hope of 12-14%.
Thu, Sep. 22, 10:52 AM
- Facing criticism the ECB's negative rate regime is crippling profits for EU banks, Mario Draghi says overcapacity is what's really hurting the sector. "The ensuing intensity of competition, exacerbates this squeeze on margins."
- A Citigroup report begs to differ: It notes share prices of banks in negative interest rate countries have fallen far more than those of lenders in regions with positive rates.
- Related ETF: EUFN
- Notable banks: Deutsche Bank (NYSE:DB), Santander (NYSE:SAN), Credit Suisse (NYSE:CS), ING (NYSE:ING), BBVA (NYSE:BBVA)
Tue, Sep. 20, 2:41 PM
- Price is the issue as Santander (NYSE:SAN) has pulled out of talks with Royal Bank of Scotland (NYSE:RBS) over a purchase of the British lender's Williams & Glyn unit, according to Bloomberg.
- Santander in 2010 had agreed to buy the operation - which today has 314 branches, £24.2B in assets, and 2M customers - but walked away from the deal in 2012 after too many delays in getting the closing done.
- The sale of Williams & Glyn is a key leg in RBS's hopes to be able to restart regular dividends, and management has indicated it's willing to accept a price less than the £1.3B in book value. RBS says there's been interest from a number of potential suitors and last month put an end to costly plans to IPO the bank.
Wed, Aug. 31, 7:33 AM
- Citing strong earnings momentum and an attractive valuation, Deutsche upgrades Banco Santander (NYSE:SAN) to Buy from Hold.
- The stock's higher by 2.75% in active premarket action alongside a nice rally in the major European banks. Rumors of a Deutsche Bank/Commerzbank tie-up again made headlines today, though Deutsche CEO John Cryan quickly denied interest.
Mon, Aug. 29, 5:01 AM
- Santander UK (NYSE:SAN) has been spending nearly £1B a year to cover the cost of its flagship current account despite the monthly fees charged by the lender, sources told FT.
- The controversial move is another example of how record low interest rates - and in the case of Europe and Japan, negative rates - are eroding banks' margins.
Wed, Aug. 24, 10:45 AM
- In the kind of development akin to the widespread use of computers, UBS, Deutsche Bank (NYSE:DB), Santander (NYSE:SAN), and Bank of New York Mellon (NYSE:BK) are teaming to develop a new form of digital cash to clear and settle financial trades using blockchain technology, according to the FT.
- While computers are great at first glance - Internet banking and ATM use should boost margins - electronic transactions still require thousands in back offices worldwide to check and process ... This is where blockchain comes in.
- The algorithm systems allows the number of those involved in verification to be significantly reduced. The finance industry spends $80B per year just on settling trades; throw in other electronic transactions, and that figure grows way larger. With digital ledgers, costs could drop to a fraction of that.
Wed, Aug. 24, 4:36 AM
- UBS (NYSE:UBS), Deutsche Bank (NYSE:DB), Santander (NYSE:SAN), BNY Mellon (NYSE:BK) and broker ICAP (OTCPK:IAPLF) have teamed up to create a digital currency called the "utility settlement coin.
- The firms hope that the currency will become an industry standard used to clear and settle financial trades over blockchain, the technology that bitcoin is based on.
- The banks and ICAP are pitching the idea to central banks and hope to launch the utility settlement coin in early 2018.
- The project is competing with similar initiatives from the likes of Citibank, Goldman Sachs and JPMorgan, which are developing separate digital currencies.
- "Today trading between banks and institutions is difficult, time-consuming and costly, which is why we all have big back offices," says Julio Faura, head of R&D and innovation at Santander. "This is about streamlining it and making it more efficient.
Tue, Aug. 2, 1:11 PM
- Williams & Glyn comprises 314 Royal Bank of Scotland (NYSE:RBS) branches which the state-owned lender had promised to unload by the end of 2017 as part of its crisis-era bailout.
- It's tougher than it sounds, and RBS earlier this year said there was significant risk it couldn't get the job done by the deadline. Santander (NYSE:SAN) has been circling for some time, and a previous deal to purchase in 2012 fell through amid concerns about the bank's technology.
- Today, RBS has 5K staff working on the process of separating itself, and Williams & Glyn still doesn't have its own banking license.
- Source: Max Colchester in the WSJ