MADRID | April 8, 2015 | By Fernando G. Urbaneja | Earlier this year, Santander announced a capital increase of €7 billion through an accelerated book building offer to institutional investors at a 12% discount on the traded share price, which was between €6-€7. Within hours, the new shares were sold and existing shareholders were left as bystanders once they had authorised the board to waive their preferential subscription rights.
MADRID | March 30, 2015 | By Nuria Álvarez, at Renta 4 | Strong gains to remain challenging in the year ahead as banking environment undergoes sectoral changes.
MADRID | March 16, 2015 | By Fernando G. Urbaneja | The hardest hit stock on the Ibex 35 last week was Sabadell bank, with the lender losing 7% of its valuation after news emerged of a pending takeover bid for British bank TSB.
MADRID | March 13, 2015 | By JP Marín Arrese | The quantitative test conducted under the Dodd-Frank Act showed a comfortable capital cushion for all eligible banks. Yet both Santander and Deustche Bank subsidiaries blatantly failed the qualitative review undertaken by the Fed under the Comprehensive Capital Analysis and Review (CCAR). In short, the banking supervisor considered their capital plans and risk management to be utterly inconsistent. It has delivered a damaging blow that should prompt swift action to redress such an appalling outcome. Santander has already announced a major overhaul in its US banking arm, but the Group as a whole badly needs to address its failures.
MADRID | By J.P. Marín Arrese | Santander´s management has provided little explanation for the huge 10% capital increase launched last week. The official announcement vaguely notes the need to seize new opportunities when economic prospects are improving. Can we bet on such a promising outlook when so many uncertainties prevail in Europe? It doesn’t seem very convincing. Rumours on potential take-overs also seem rather odd, as raising cash before entering a bid will only serve to increase the final bill. It makes more sense to gauge this move as a means aimed at buttressing the bank´s own funds.
MADRID | The Corner | The stock listing of Santander, Spain and the euro zone´s largest bank was provisionally suspended on Thursday ahead of the imminent approval of a capital increase of €7Bn. When trading was suspended, shares were priced at €6.85, a rebound of 3.31%.
MADRID | The Corner | Banco Santander CEO Javier Marín will leave eurozone’s largest lender after only two years in the role. Ana Botín, in charge of the bank after her father Emilio Botín died in September, announced Marín’s replacement by Jose Antonio Álvarez, who has spent the past decade as CFO. Ana Botín also made several changes to its board of directors. Shares in Santander rose 1.8% to 7.22 euros in Madrid following the announcement.
MADRID | The Corner | Everything went by the book: after Spain’s largest bank Santander chairman Emilio Botin died on Wednesday, his daughter Ana Patricia Botín (53) was appointed to succeed him. Her long career in finance, closely supervised by his father, took her to the UK, where Santander bank gets 20% of its profits (Spain accounts for 14%). Britain’s third most powerful woman according to the BBC has now become Spain’s most influential in finance.
MADRID | The Corner | Santander will issue contingent convertible bonds (CoCos) worth up to 1,500 million euros. In order to reach its aim, the bank will start a road show to sound out the market interest and, in case of suitable conditions, it will start the operation on Monday or Tuesday next week with the collaboration of Credit Suisse, HSBC, JP Morgan, Société Générale and UBS. This issue of CoCos will be the third that the Spanish bank carries out this year, after the issue of 1,5000 million euros in March at an interest rate of 6.25% and another one in May when it sold CoCos worth 1,500 million dollars at 6.375%.
MADRID | By Fernando G. Urbaneja | United Kingdom has displaced Brazil, which displaced before Spain as first market by benefit contribution to Banco Santander. Of the 2,750 million € earned in the first six months (+22% over the first half of 2013), 20% comes from the British market. Brazil contributes the 19% of benefits and Spain recovers share until reaching the 13%. And then there are United States (9%), Mexico (8%), Chile (7%), Poland (6%), Germany (5%), Portugal (2%) and other countries from Europe and Latin America (11%).