Jun. 24, 2014, 11:26 AM
- Citigroup (C), HSBC North America, RBS Citizens, and Santander Holdings U.S.A. (SAN) were originally required to re-submit capital plans by the end of business on Thursday, but - following requests from the banks - the Fed is giving them until January 5 of next year, the due date for the next round of annual plans for all of the lenders under the CCAR umbrella.
- Previously: Passing next stress test is job #1 at Citi
Jun. 23, 2014, 3:45 AM| 1 Comment
Jun. 19, 2014, 7:58 AM
- Warburg Pincus and Temasek lead the buyers group and the deal values the business at $1.3B. The unit has €738B in assets under custody and Santander (SAN) says it will book a €410M ($556M) capital gain on the sale.
- The shedding of the asset should boost the bank's core equity capital ratio by 12 basis points, according to an analysis by Citigroup.
- An earlier report pegged the value of the unit at maybe as high as $1.4B.
- SAN +0.9% premarket
Jun. 18, 2014, 2:30 PM
- A Spanish bank pair trade from RBC Capital has the team upgrading Banco Santander (SAN +0.6%) to Sector Perform from Underperform as it downgrades BBVA (BBVA +0.5%) to Underperform from Sector Perform.
- The trade would have worked well thus far this year, with SAN +16% YTD vs. BBVA +5.5%. The future is less certain.
Jun. 6, 2014, 12:33 PM
- Both Banco Santander (SAN +1.7%) and BBVA's (BBVA +2.5%) long-term issuer default ratings are hiked to A- from BBB+ at Fitch, keeping them one notch higher than that of Spain itself.
- The upgrade "primarily reflects the upgrade of Spain's sovereign rating and related signs of macro-economic improvements in the domestic market. Continued diversification benefits, especially for Santander, support these banks' ratings at one notch above the sovereign rating."
May. 29, 2014, 1:28 PM
- The Fed last week told Santander Consumer USA (SC -5.4%) it didn't object to its May dividend of $0.15 per share as long as Santander (SAN -0.6%) contributes at least $20.9M of capital to its U.S. holding company. Any further dividends will require Fed permission, and the company doesn't expect to submit a revised capital plan until January.
May. 29, 2014, 7:25 AM
- The pendulum swings. Many banks were accused of predatory lending - "reverse redlining" - in minority neighborhoods during the housing bubble, but now Santander Bank (SAN) is about to be sued by the city of Providence for "redlining" those same neighborhoods in recent years.
- “The attitude is, if we can’t do subprime loans, predatory loans in the black community, we won’t do any loans at all,” says John Relman, the lead lawyer on the case. “For us it is a civil rights issue.”
- The suit claims Santander - which purchased northeastern based Sovereign Bank in 2009 - upped new mortgages in white neighborhoods by 25% over the 2006/07 level, while cutting loans in minority neighborhoods by 63%. Other lenders showed similar patterns, says Relman, but not at the level of Santander.
- Relman in 2008 sued Wells Fargo on behalf of Baltimore and Memphis for "reverse redlining." The bank ultimately settled with the DOJ for over $230M.
May. 14, 2014, 7:44 AM
- The value of the entire unit could be worth up to $1.4B, reports Reuters, and Warburg Pincus is among the P-E firms vying for a 50% stake. Santander (SAN) has previously teamed with private equity firms as a way to raise cash from is businesses, and sometimes to expand them.
- The bank last year sold half of its asset management unit to Warburg Pincus and General Atlantic and Warburg was one of the investors in Santander Consumer USA, which IPOd earlier this year.
Apr. 29, 2014, 9:39 AM
- Capital shortfalls will need to be covered within six months for those lenders failing under the EBA's baseline stress test scenario, while banks failing under the adverse scenario will have nine months to fix things.
- ECB Vice-President Constancio: "Banks should start to consider what private sources of capital could be raised as a result of this exercise and plan accordingly."
- Earlier: The EBA unveils stress test criteria. 124 banks from 28 EU states are subject to the exams. Among the larger ones: DB, BNPQF, BNPQY, SCGLY, SAN, BBVA, UNCFF, UNCFY, IRE, NBG, CRZBY, CRARY.
- European financial sector ETF: EUFN
Apr. 29, 2014, 4:13 AM
- Banco Santander's (SAN) Q1 net profit rose to €1.3B ($1.8B) from €1.2B a year earlier and exceeded forecasts that were also €1.2B, boosted by an improving economy and falling charges for bad loans.
- Net interest income slipped 3% to €6.99B from €7.21B.
- Provisions for bad loans fell 14.2% to €2.69B as the non-performing loan ratio dropped to 5.52% from 5.64%.
- Profit breakdown: Spain +24% to €251M; U.K. +63% to €376M; Latin America -26.6%, hurt by currency fluctuations.
- Separately, Santander intends to acquire the 25% of Banco Santander Brasil (BSBR) that it doesn't own for €4.69B in shares, with the price representing a 20% premium.
- Shares are +0.7% in Madrid. (PR)
Mar. 26, 2014, 6:06 PM
- BBVA Compass is approved for semi-annual $51M dividend payments to parent BBVA. (PR)
- As previously reported, HSBC North America was rejected from paying dividends to parent HSBC for "qualitative" reasons relating to weaknesses in its capital planning processes. HSBC N.A. expects to resubmit its plan incorporating enhancements in its processes.
- RBS CItizens (RBS), and Santander Holdings (SAN) were rejected from sending money upstairs for similar reasons, and will be resubmitting as well.
Mar. 26, 2014, 4:04 PM
- The Fed approves 25 out of 30 capital return plans from the nation's largest lenders, but rejects those from Citigroup (C), RBS Citizens, HSBC North America, Santander Holdings (SAN), and, of course, Zions Bancorp (ZION).
- Press release
- Citi -3.3%, RBS -0.2%, HSBC -1.4%, Santander -1.5%, Zions -1.3% in after-hours trade.
Mar. 20, 2014, 5:07 PM
- Again, all 30 lenders subject to the Fed stress test passed with the exception of Zions Bancorp. Checking the individual results:
- Regional banks passing: BB&T Corp. (BBT), Comerica (CMA), Fifth Third (FITB), Huntington (HBAN), KeyCorp (KEY), M&T (MTB), PNC, Regions (RF), SunTrust (STI), U.S. Bancorp (USB).
- Credit card lenders: American Express (AXP), Discover (see here), Capital One (COF).
- Those controlled by overseas holding companies: BBVA Compass, BMO FInancial, HSBC North America, RBS Citizens Financial, Santander Holdings USA (SAN), UnionBanCal (MTU).
- Trust banks: Bank of New York (BK), State Street (STT), Northern Trust (NTRS).
- TBTFs: See here.
- More on Zions (ZION): The failure likely has something to do with CDOs on its books backed by trust-preferred securities. The bank signaled earlier this year it would likely resubmit its capital plan to the Fed as the test's calculation of its capital ratio wouldn't reflect Zion's planned sale of these.
Mar. 20, 2014, 10:35 AM
- The results of the Fed stress tests on the usual banking industry suspects are expected today, but this year's version includes 12 new companies added to last year's list of 18. Newly subjected U.S.-based lenders: DFS, NTRS, HBAN, MTB, ZION. Foreign-owned U.S. bank holding companies: BBVA Compass Bancshares, BMO Financial, HSBC N.A. Holdings, RBS Citizens Financial Group, Santander Holdings USA (SAN), UnionBanCal (MTU).
- The CCAR results - at which the Fed will give a thumbs up/thumbs down on banks' capital return plans - are due on March 26.
Mar. 18, 2014, 12:22 PM
- Blackstone (BX +1.8%) is teaming with Deutsche Bank (DB +1.6%), Lone Star Capital with JPMorgan (JPM +0.3%), and Apollo Global (APO -0.6%) with Banco Santander (SAN +1.3%) to win Commerzbank's (CRZBY +4%) so-called Project Octopus portfolio of Spanish real estate loans, with bids reportedly topping €3B (face value of loans is over €4B).
- Commerzbank is a forced seller as the bailed-out lender continues to move to get a grip on its capital levels (the German government is now a 17% owner).
Mar. 11, 2014, 11:33 AM
- The publication of the 285-page manual marks the start of phase 2 of the ECB's review of EU banks which is expected to run until August. The exam will cover €3.72T, or 58% of the banking system's risk-weighted assets. On average, central bank supervisors will review 1,250 credit files per bank.
- The move is part of a process by the EU to harmonize banking practices across borders, break the (often-toxic) link between governments and their banks, and bring credibility back to the sector. Along with this review, the ECB is conducting stress tests for the largest banks.
- Yesterday: German lenders - including Deutsche Bank (DB) - escape the need to revalue their mortgage portfolios.
- Also among those under review: SAN, BBVA, ING
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