Santander UK Plc Outcome of the 2016 Bank of England Stress Tests (5188Q)
November 30 2016 - 2:22AM
UK Regulatory
TIDMSAN
RNS Number : 5188Q
Santander UK Plc
30 November 2016
30 November 2016
SANTANDER UK PLC
STATEMENT ON THE OUTCOME OF THE 2016
BANK OF ENGLAND STRESS TESTS
Santander UK notes the publication of the results of the 2016
stress tests conducted on seven major UK banks and building
societies by the Bank of England.
As a result of the exercise the Bank of England does not require
Santander UK to undertake any actions.
Santander UK's lowest post-stress CRD IV end-point common equity
tier 1 ('CET 1') capital ratio, over a five-year stress period to
the end of 2020, was modelled to be 9.9% after allowed management
actions. This result is significantly in excess of the CET 1 hurdle
rate of 7.3% established by the Bank of England. Santander UK
reported a CET 1 capital ratio of 11.1% as at 30 September
2016.
The Bank of England's CET1 hurdle rate comprises the CRR Pillar
1 minimum of 4.5% together with a Pillar 2a CET1 minimum of 2.8%.
Santander UK plc has been informed that the latter minimum will
take force on 1st January 2017 and represents an increase of 0.6
percentage points over the current Pillar 2a CET1 minimum of 2.2%,
which will be in force until 31st December 2016.
Santander UK's lowest post-stress end-point leverage ratio, over
a five-year stress period to the end of 2020, was modelled to be
3.6% after allowed management actions. This result is significantly
in excess of the leverage threshold of 3.0% established by the Bank
of England. Santander UK reported a leverage ratio of 4.0%(1) as at
30 September 2016.
(1) The end point CRD IV Tier 1 Leverage Ratio at 30 September
2016 would have been 3.8%, based upon leverage exposure of
GBP301.9bn, if the deductions permitted under the Recommendation
from the Financial Policy Committee on the 25(th) July 2016 were
excluded.
- Ends -
Santander UK is a financial services provider in the UK that
offers a wide range of personal and commercial financial products
and services. As at 30 June 2016, the bank serves around 14 million
active customers with c. 20,000 employees and operates through 841
branches (which includes 58 university branches) and 69 regional
Corporate Business Centres. Santander UK is subject to the full
supervision of the Financial Conduct Authority (FCA) and Prudential
Regulation Authority (PRA) in the UK. Santander UK plc customers
are protected by the Financial Services Compensation Scheme (FSCS)
in the UK.
About Us
Banco Santander (SAN SM, STD US, BNC LN) is a leading retail and
commercial bank, based in Spain, with a meaningful market share in
10 core countries in Europe and the Americas. Santander is among
the world's top banks by market capitalization. Founded in 1857,
Santander had EUR 1.52 trillion in managed funds, 12,500 branches
and 190,000 employees at the close of June 2016. In the first half
of 2016, Santander made underlying profit of EUR 3,280 million.
Nothing in this announcement constitutes or should be construed
as constituting a profit forecast.
For further information please contact:
Andy Smith, Head of Media Relations Tel: +44 (0) 20 7756
4212
Bojana Flint, Head of Investor Relations Tel: +44 (0) 20 7756
6474
For more information: www.aboutsantander.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
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