Renta 4 | According to press reports, the US is seeking to improve the competitiveness of American banks vis-à-vis their European counterparts and is considering increasing capital requirements for foreign banks. The change would be due to the impact of no longer considering the European Union as a single market. Since 2022, the European Union has been considered a single market and is recognised in the calculation of ratios as a single country. This is where the US wants to interfere, arguing that it is not fair to consider the entire European Union as a single region and that criteria should be established on a country-by-country basis.
Assessment: According to the press, this initiative is already being discussed by the Basel Supervisory Committee. Without figures on where this measure would lead if implemented, it is not possible to calculate the impact it would have on Santander, as the entity most affected due to its presence in the US.However, Santander closed H1 2025 with a capital ratio of 12.98%, which means it has excess capital above the 12% benchmark (the bank’s limit) of €6.1 billion, an amount that we believe should be sufficient to cope with the implementation of this measure. The news is negative and is likely to put pressure on the share price in the short term until it is known whether or not it will be implemented, and in what way.
HOLD. Target price €7.62/share.
