Thu, Oct. 1, 10:29 AM
Mon, Sep. 28, 9:35 AM
- Though one of the globe's largest lenders, Santander (NYSE:SAN) typically doesn't come to mind when thinking of the big players in investment banking.
- The bank, however, has hopes of bringing its U.S. and U.K. investment banking businesses up to the same strength as that of its Brazilian and Spanish operations, reports the WSJ.
- Easier said than done. Current bank boss Ana Botin previously tried and failed to build a major investment banking franchise in Asia for Santander.
Wed, Sep. 23, 10:09 AM
- Banco Santander (SAN -1.1%) has laid out its strategic plan for the next three years, targeting bigger capital reserves and faster earnings growth by 2018.
- The bank wants to hit double-digit growth in EPS and begin increasing its dividend next year, pursuing a cash payout of 30%-40%. It's targeting a fully loaded core Tier 1 equity of more than 11% by 2018 (it's currently at a Europe-low 9.8%, whereas Deutsche Bank has recently been at 11.4%).
- Santander didn't detail how it would build up that capital, though, JPMorgan analysts said, and Bellevue's Karim Bertoni said “They will need that economic conditions be favorable to achieve their goals.”
- Santander stock has slid 30% this year, and European regulators are pushing banks to build up capital cushions.
Fri, Jul. 10, 9:12 AM
Fri, Jul. 3, 3:53 AM
- Banco Santander (NYSE:SAN) has reached an agreement to acquire the 9.68% stake held by DDFS in Santander Consumer (NYSE:SC) for $928M.
- Following the transaction, which is subject to regulatory approval, Santander's stake in Santander Consumer will stand at about 68.7%.
- Previously: Santander Consumer CEO Dundon leaving; CFO to replace (Jul. 02 2015)
Mon, Jun. 29, 9:16 AM
Wed, Jun. 17, 11:30 AM
- While the OCC lifted consent orders against Bank of America (NYSE:BAC), Citibank (NYSE:C), and PNC Financial (NYSE:PNC) after finding unsafe and unsound mortgage-servicing and foreclosure practices back in 2011, Wells Fargo (NYSE:WFC) is part of a group facing new restrictions.
- Among other items, report Deon Roberts and Rick Rothacker, Wells Fargo is banned from entering new contacts to perform mortgage servicing for other lenders. The bank may still make and service new mortgages.
- OCC Deputy Controller Morris Morgan expects corrections from the group to be made in months, not years. “We have reserved the ability to take additional action against the six, and we plan to do so based on how quickly and effectively they remediate the remaining actions."
- The other five: JPMorgan (NYSE:JPM), HSBC Bank USA (NYSE:HSBC), Santander Bank (NYSE:SAN), U.S. Bank (NYSE:USB), and EverBank (NYSE:EVER)
Tue, Apr. 28, 9:44 AM
- Q1 profit of €1.717B up 18% from Q4, up 31.8% from a year ago. EPS of €0.121 up 7.3% Q/Q, up 6.4% Y/Y.
- Net interest income of €8.038B up 4.2% from Q4, up 15% from a year ago.
- CET1 ratio of 9.7% flat from the start of the year.
- Company notes the positive impact of exchange rates, a fall in real operating expenses, and improved cost of credit (1.38%, down 27 bps from a year ago) as helping to boost results. The efficiency ratio of 47% improved 90 bps from Q1 of 2014.
- SAN +2.3%
- Previously: Banco Santander reports Q1 results (April 28)
Tue, Apr. 28, 9:18 AM
Thu, Apr. 23, 3:13 PM
- Banco Santander (SAN +1.9%) and Unicredit (OTC:UNCFY) agree to merge their asset management units in a deal valuing the new group at about €5.4B.
- The merged operation will have €400B in AUM, and last year had over €25B of net inflows.
- The deal was structured to ensure Santander had no direct involvement in the U.S. part of the business (Santander's U.S. operation has failed the stress test for two years running).
Mon, Mar. 30, 9:17 AM
- Unlike last year's stress test which focused on a U.K. property bust, this year's version deals more with how banks would handle a global economic slowdown and market tumble, suggesting lenders like HSBC, Standard Chartered (OTCPK:SCBFF), and Barclays (NYSE:BCS) could have a tougher go of it.
- The seven lenders tested will have to maintain a CET 1 ratio of 4.5% and a leverage ratio of 3%.
- Also to tested: RBS, Lloyds (NYSE:LYG), Santander U.K. (NYSE:SAN), and Nationwide Building Society.
- Results are due in December.
- Sources: Bank of England, WSJ
Wed, Mar. 11, 4:36 PM
- Bank of America (NYSE:BAC) has deficiencies including loss and revenue modeling practices in its internal controls, says the Fed, requiring the bank to resubmit its capital plan before winning approval for boosted shareholder returns. The lender has until the end of September to address the Fed's concerns.
- Santander (NYSE:SAN) has "widespread and critical deficiencies," and Deutsche Bank (NYSE:DB) has "numerous and significant deficiencies." We're talking about the U.S. units here, and the capital returns in question are back to the parents, not to shareholders.
- CCAR results
- BAC -1.25%, DB -1.2%, SAN -1% after hours
Mon, Mar. 9, 3:44 AM
- Despite all thirty-one global banks passing the first round of the Fed's stress test last Thursday, a tougher second round test this week, known as the Comprehensive Capital Analysis and Review (CCAR), will either approve or disapprove the lenders' capital return plans.
- Last year, Citigroup (NYSE:C) became the only big U.S. bank to have its plans thrown out, with the Fed citing "insufficient" improvement in areas previously flagged. Other 2014 CCAR losers: Citizens (NYSE:RBS), HSBC (NYSE:HSBC) and Santander (NYSE:SAN).
- Previously: All 31 lenders pass the stress test (Mar. 05 2015)
Thu, Mar. 5, 8:28 PM
- The minimum Tier 1 common capital ratio for banks is 5%, according to the Fed, and here's how the 31 lenders stacked up under the central bank's severely adverse scenario vs. a year ago (h/t: WSJ):
- Deutshce Bank (NYSE:DB): 34.7%, not tested a year ago
- DIscover (NYSE:DFS): 13.9% vs. 13.2% a year ago
- Bank of New York Mellon (NYSE:BK): 12.6% vs. 13.1%
- American Express (NYSE:AXP): 12.5% vs. 12.1%
- Northern Trust (NASDAQ:NTRS): 12.3% vs. 11.7%
- State Street (NYSE:STT): 11.8% vs. 13.3%
- Citizens Financial (NYSE:CFG): 10.7% vs. 10.7%
- KeyCorp (NYSE:KEY): 9.9% vs. 9.2%
- Capital One (NYSE:COF): 9.5% vs. 7.8%
- PNC Financial (NYSE:PNC): 9.5% vs. 9%
- Santander Holdings USA (SAN's U.S. unit): 9.4% vs. 7.3%; shares +0.8% after hours
- BMO Financial (BMO's U.S. unit): 9% vs. 7.6%
- Comerica (NYSE:CMA): 9% vs. 8.6%
- Huntington Bancshares (NASDAQ:HBAN): 9% vs. 7.4%
- HSBC North America (NYSE:HSBC): 8.9% vs. 6.6%
- U.S. Bancorp (NYSE:USB): 8.5% vs. 8.2%
- Regions Financial (NYSE:RF): 8.3% vs. 8.9%
- Citigroup (NYSE:C): 8.2% vs. 7.2%
- SunTrust (NYSE:STI): 8.2% vs. 8.8%
- BB&T (NYSE:BBT): 8.1% vs. 8.4%
- MUFG Americas Holdings (NYSE:MTU): 8% vs. 8.1%
- Ally Financial (NYSE:ALLY): 7.9% vs. 6.3%
- Fifth Third Bancorp (NASDAQ:FITB): 7.9% vs. 8.4%
- Wells Fargo (NYSE:WFC): 7.5% vs. 8.2%
- M&T Bank (NYSE:MTB): 7.3% vs. 6.2%
- Bank of America (NYSE:BAC): 7.1% vs. 5.9%; shares +2.1% after hours
- JPMorgan (NYSE:JPM): 6.5% vs. 6.3%
- BBVA Compass (NYSE:BBVA): 6.3% vs. 8.5%
- Goldman Sachs (NYSE:GS): 6.3% vs. 6.9%
- Morgan Stanley (NYSE:MS): 6.2% vs. 6.1%
- Zions Bancorp (NASDAQ:ZION): 5.1% vs. 3.6%; shares -1.7% after hours
- The lenders were also informed today whether their capital return plans would put them below the Fed's 5% threshold, giving them a 6-day window with which to change those requests, if need be. Last year, both BofA and Goldman scaled back their dividend/buyback requests, allowing them to pass the CCAR. This year's CCAR results will be announced on Wednesday.
- 2015 Stress Test Methodology and Results
Mon, Mar. 2, 9:08 AM
- As it works to shore up its relations with regulators (including an expected fail in the stress test this week), Santander Holdings USA has - as expected - chosen former JPMorgan consumer bank chief Scott Powell as its CEO, reports the WSJ.
- The unit owns Santander Bank as well as 60.5% of subprime lender Santander Consumer USA (NYSE:SC).
- It's the latest move by Ana Botin who took over Santander (NYSE:SAN) in September after her father's sudden passing. In addition to shaking up management in Spain, she's cut the dividend and raised $9B in capital.
- Today's move is less about changing the business plan of Santander's U.S. unit, and more about getting back in the good graces of American regulators, reports the Journal, citing a number of sources.
Fri, Feb. 20, 5:52 PM
- Deutsche Bank (NYSE:DB) and Banco Santander (NYSE:SAN) are likely to fail the Fed's stress test because of shortcomings in how they measure and predict potential losses and risks, Dow Jones reports.
- Failing the stress tests likely would subject the U.S. units of DB and SAN to restrictions on paying dividends to their European parent companies or other shareholders; SAN already is under such a restriction after failing its first stress test run last year, while DB is undergoing the U.S. stress test process for the first time this year.
- Both banks passed European Central Bank stress tests in October.
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