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.
Fri, Feb. 20, 3:10 AM
- Santander (NYSE:SAN) has agreed to switch the way it screens applicants for checking and savings accounts, joining Citi (NYSE:C) and Capital One (NYSE:COF) which have already reached such a pact with New York Attorney General Eric Schneiderman.
- The accord comes amid concerns that the current screening process (through consumer-reporting agency ChexSystems) makes it harder for lower-income customers to open accounts, forcing them to rely on high-cost alternatives like check-cashing outlets.
- Schneiderman also has been looking into JPMorgan (NYSE:JPM) over its use of customer-screening databases, sources told Reuters.
- Previously: Citibank settles with NY over checking account screenings (Jan. 28 2015)
Tue, Feb. 3, 6:23 AM
- Profits at Banco Santander (NYSE:SAN) rose by almost 70% in the first full quarter under Ana Botín as the Spanish bank benefited from stronger lending income, higher fees and reduced provisions for bad loans.
- Santander reported net profit of €1.46B ($1.65B), up from €864B a year earlier and against analysts’ forecasts of €1.45B.
- Net interest income rose nearly 12% to €7.71B, from €6.93B, a year earlier.
- SAN +3% premarket
Fri, Jan. 9, 9:10 AM
Fri, Jan. 9, 7:54 AM
- More than half of the €7.5B in newly issued Santander (NYSE:SAN) stock was purchased by U.S. investors, reports the FT, with about 25% bought by U.K. owners.
- The bank issued 1.214B shares at £6.18 each as new executive chairman Ana Botin quickly broke ranks with her late father's strategy just four months after replacing him atop the company.
- The ADRs are lower by 4.5% premarket after yesterday's 7% decline.
- Now that Santander has joined Deutsche Bank in raising capital, analysts turn their attention to the next dominoes. High on the list: BNP Paribas (OTCQX:BNPQY), Societe General (OTCPK:SCGLY), Credit Suisse (NYSE:CS), Commerzbank (OTCPK:CRZBY), and Credit Agricole (OTCPK:CRARY).
Thu, Jan. 8, 9:04 AM
- Santander's (NYSE:SAN) fat dividend has been a curiosity to many for some time given its weakish capital position, and, along with today's announcement of a near-$9B capital raise, the bank is cutting the annual payout to €0.20 from €0.60.
- Three-quarters of the new dividend will be paid in cash, the rest in scrip.
- The bank's most recently disclosed "fully loaded" capital ratio under Basel III was 8.5-8.6%, below most European peers.
- Previously: Santander to raise nearly $9B in share sale (Jan. 8)
- Previously: Santander halted as capital raise plan reportedly on tap (Jan. 8)
- Shares -3% premarket
Thu, Jan. 8, 8:57 AM
- The sale will run through an "accelerated process" reports Bloomberg, citing a regulatory filing, meaning it's probably happening tonight. There's no word yet available on what Santander (NYSE:SAN) is planning on doing with its dividend, but surely there will be a change in policy on that.
- Shares -2.5% premarket
- Previously: Santander halted as capital raise plan reportedly on tap (Jan. 8)
Thu, Jan. 8, 8:03 AM
- The Spanish stock market regulator has halted trade in Banco Santander (NYSE:SAN) apparently ahead of a capital raise plan to be announced by the bank.
Dec. 11, 2014, 4:11 PM
- The New York Department of Financial Services has subpoenaed the auto-lending divisions of Ford (NYSE:F), Honda (NYSE:HMC), Hyundai (OTC:HYMLF), Nissan (OTCPK:NSANY), and Volkswagen (OTCQX:VLKAY), along with Santander (SAN, SC) and TD Bank over their lending practices, reports the NY Post, with an official announcement coming as soon as tomorrow.
- The move comes amid other investigations over auto-lending by the CFPB and the NYC Department of Consumer Affairs.
- Previously: FRBNY: Q3 auto loans highest in nearly a decade (Nov. 25, 2014)
Dec. 9, 2014, 10:23 AM
- Banco Santander (SAN -2%) is considering a buyout of Santander Consumer USA (SC +9.6%) reports Bloomberg. The spike in SC triggered a circuit breaker, and the shares are just now trading again.
- To review: Santander Consumer USA was taken public at the start of this year, but Banco Santander got put in the penalty box by the Fed for accepting a dividend from the U.S. operation in the spring. Any future payouts will first require Fed permission.
Nov. 27, 2014, 1:27 PM
- Monitise (OTCPK:MONIF) gets a £49.2M investment from strategic partners Telefonica (NYSE:TEF), Santander (NYSE:SAN) and Mastercard (NYSE:MA).
- They will buy 161M ordinary shares at 30.5p/share (Nov. 26's close), representing 8.2% of the existing issued ordinary share capital.
- Monitise also says it's in discussions to expand its commercial relationships with above partners "to support the development and accelerated rollout of its global platform capabilities."
- IBM has agreed to deploy Watson in support of Monitise’s new technology platform.
- Monitise also reiterates current year and longer-term guidance.
- Short interest is ~11% of float.
- Monitise was best performer on FTSE AIM 100 index today.
- Source: press release
Nov. 26, 2014, 7:45 AM
- The bank is looking to transfer its 26.8% stake in Tonopah Solar Energy, LLC to a new holding company, with two Canadian public pension funds each holding about a one-third interest in the JV, reports the WSJ. Financial terms weren't disclosed and Santander (NYSE:SAN) is currently seeking regulatory approval for the move.
- In other news, the bank yesterday agreed to buy a $300M consumer loan portfolio from the Mexican unit of Scotiabank, and Santander says about 90% of the more than 47K clients in the portfolio represent new business opportunities.
SAN vs. ETF Alternatives
Other News & PR