Banco Santander S.A. ECB: 2017 prudential minimum capital requirements (3995Q)
November 29 2016 - 2:31AM
UK Regulatory
TIDMBNC
RNS Number : 3995Q
Banco Santander S.A.
29 November 2016
MATERIAL FACT
Banco Santander, S.A. ("Santander") has been informed by the
European Central Bank ("ECB") on its decision regarding prudential
minimum capital requirements for 2017, following the results of the
Supervisory Review and Evaluation Process (SREP).
The decision requires that Santander maintains a Common Equity
Tier 1 (CET1) ratio of at least 7.75% on a consolidated basis. This
requirement compares to Santander's last reported consolidated CET1
ratio of 12.44% as of 30 September 2016.
This CET1 capital requirement includes: the minimum Pillar 1
requirement (4.5%); the Pillar 2 requirement (1.5%); the capital
conservation buffer (1.25%); and the requirement deriving from its
consideration as a global systemic financial institution
(0.5%).
José Antonio Alvarez, the Group CEO, commented on these new
requirements: "The strength of the Group business model and its
geographical diversification, jointly with the existing capital
buffers in the Group and our current CET1 fully-loaded capital
ratio of 10.47%, provide us with ample support to continue
implementing our strategy going forward".
On an individual basis the ECB requires that Santander maintains
a CET1 ratio of at least 7.25%. This requirement compares to
Santander's last reported individual CET1 ratio of 14.31% as of 30
September 2016.
The ECB's decision implies that the consolidated CET1 level
below which Santander would be forced to calculate the Maximum
Distributable Amount (MDA) restricting distributions in the form of
dividends, variable remuneration and coupon payments to holders of
Additional Tier 1 instruments, commonly referred to as MDA trigger,
is 7.75%.
Taking into account Santander's consolidated and individual
current CET1 levels, these capital requirements do not imply any
such limitations on distributions in the form of dividends,
variable remuneration and coupon payments to holders of Additional
Tier 1 instruments.
Boadilla del Monte (Madrid), 29 November 2016
This information is provided by RNS
The company news service from the London Stock Exchange
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