BOSTON, June 29, 2016 /PRNewswire/ -- The Board of
Governors of the Federal Reserve System (Federal Reserve) disclosed
today the results of its Comprehensive Capital Analysis and Review
(CCAR). The results show that Santander Holdings USA, Inc.'s (SHUSA) capital ratios would be
expected to remain significantly above minimum regulatory
requirements under severely adverse economic stress scenarios.
SHUSA's Common Equity Tier 1 ratio was 12.0% at December 31, 2015. Under the Federal Reserve's
supervisory severely adverse scenario in the CCAR quantitative
results, SHUSA's Common Equity Tier 1 ratio would decline to a
minimum of 11.9% during the forecast horizon, according to the
Federal Reserve's estimate, which is well above the 4.5% required
minimum. Further, according to the Federal Reserve's estimates, all
of SHUSA's regulatory capital ratios would remain significantly
above the required minimums incorporated in CCAR. However,
despite strong capital levels, the Federal Reserve objects to the
company's proposed capital plan on a qualitative basis.
SHUSA Chief Executive Officer Scott
Powell said, "Our results confirm that Santander Holdings
USA has strong capital levels that
are well above the required minimums. We have made progress, but
our internal capital planning, stress testing, internal controls,
governance and oversight require further improvement to meet our
regulators' expectations." He added, "We are financially sound.
These results do not affect our ability to serve our customers. We
remain committed to enhancing their experience, helping people and
businesses prosper and managing our business to the highest
standards in a way that is Simple, Personal and Fair."
SHUSA non-executive Chairman T. Timothy
Ryan, Jr. commented, "SHUSA's Board is disappointed that we
have failed the qualitative part of CCAR, but this conclusion was
not unexpected. SHUSA and its subsidiaries have a comprehensive
plan to strengthen the areas the Federal Reserve identified.
Our expectation is that improvement will continue and 2017 will
bring more positive results."
Powell added, "As a company, we have devoted extensive talent
and resources to this critical effort and our colleagues have
demonstrated great commitment to improving our CCAR capital plan.
The qualitative results the Federal Reserve rightfully expects from
Santander are within reach and we will meet these expectations. We
have already begun preparing for next year's stress test and we are
well on our way to making the enhancements necessary to improve our
qualitative assessment."
Santander Holdings USA, Inc.
(SHUSA) is a wholly-owned subsidiary of Banco Santander, S.A.
(NYSE: SAN). Banco Santander is a diversified global retail and
commercial bank offering a wide range of financial products with
more than 117 million customers worldwide. SHUSA owns 100% of
Santander Bank, N.A., a retail and
commercial bank with more than 670 branches and 9,800 employees in
the U.S. northeast, and approximately 59% of the common stock of
Santander Consumer USA Holdings
Inc. (NYSE: SC), a Dallas,
Texas-based national consumer lending company.
Media Contacts:
Raschelle Burton
617-316-3940
Raschelle.burton@santander.us
Ann
Davis
617-757-5891
ann.davis@santander.us
Nancy Orlando
617-757-5765
nancy.orlando@santander.us
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SOURCE Santander Holdings USA,
Inc.