Link Securities | The president of Banco Santander (SAN), Ana Botín, has assured that the bank’s British subsidiary (Santander UK) is not for sale and has reiterated that the UK is a key market for the Spanish bank, according to Bolsamanía.
“The UK is not for sale. We love the UK and it will remain a key market. We review our strategy every year. The UK is profitable, it gives us diversification because it has a different currency, its risk balance is low and I am very satisfied with the progress it is making,” said Botín in an interview with The Sunday Times.
Fears about Santander’s intentions in the UK emerged a week ago, when the Financial Times reported that a review of the business was underway. Speculation intensified last week when William Vereker, the former investment banker who chairs the UK operations, announced his intention to step down this year after a shorter-than-expected five-year term.
Meanwhile, the financial daily Expansión reported yesterday that Santander has filed an appeal with the Court of Justice of the European Union (CJEU) against a supervisory decision of the European Central Bank (ECB) with an impact on its capital ratio. The ECB agreed on 16 October that Santander must deduct the deferred tax assets (DTAs) generated by its Brazilian subsidiary from its maximum quality own funds (CET1).
The bank, however, considers that this measure does not comply with European capital requirements rules and has asked the Court to annul the European Central Bank’s (ECB) supervisory decision on the correct prudential treatment of the deferred tax assets generated by Banco Santander Brazil, according to the Official Journal of the European Union. Pending the processing of the appeal, the bank has already adjusted its volume of own funds to the measure adopted by the supervisor, without suffering any significant impact. Santander ended 3Q2024 with a maximum quality capital ratio of 12.5% and a CET1 buffer of €78,058 million.