Jul. 22, 2014, 10:28 AM
- BBVA (BBVA +1.6%) says its purchase last night of bailed-out Spanish lender Catalunya Banc will bring in an additional €63B in assets and add an average of €300M ($405M) to its net profit as of 2018.
- BBVA was the surprise winner of the auction to buy nationalized bank, beating rivals Santander (NYSE:SAN) and Caixabank (OTCPK:CAIXY) with a €1.2B ($1.62B) offer.
- BBVA's expansion makes it the largest largest player in Spain's Catalonia region, pitting it against Caixabank, Spain's largest domestic bank by loans and deposits and the dominant player in the northern region.
Jul. 17, 2014, 4:54 AM
- Prior to its takeover of European bank supervision on November 4, the ECB will release collections of data on the euro zone's 128 most important lenders to insure the banks can withstand future crises.
- The published review in the second half of October will outline leverage measures, standardized ratios of non-performing loans and other statistics, giving the banks only two weeks to come up with plans to deal with capital shortfalls.
- Related stocks: SAN, DB, IRE, CS, ING, BBVA, BCS, RBS, HSBC, LYG
- ETFs: EUFN
Jul. 10, 2014, 9:44 AM
- When the going gets tough, the tough suspend trading. Portugal has halted trade in Banco Espirito Santo with the stock off 17.2% on the session and 54% over the last month. At issue are financial troubles for the bank's privately-owned holding company, Espirito Santo International. Its accounts are currently under review by an external auditor who has identified irregularities and concluded the company "is in serious financial condition."
- Santander (SAN -5.8%), UBS (UBS -1.8%), Deutsche Bank (DB -3.1%), Bank of Ireland (IRE -5.6%), Credit Suisse (CS -2.8%), ING (ING -3.2%), BBVA (BBVA -3.1%). U.K. banks: Barclays (BCS -3.8%), RBS (RBS -1.9%), HSBC (HSBC -1.9%), Lloyds (LYG -2%).
- European financial sector ETF: EUFN -2.4%.
Jul. 10, 2014, 9:17 AM
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.
SAN vs. ETF Alternatives
Other News & PR