Banco Santander S.A. reports news as a global retail and commercial banking group whose ADR trades under SAN. Recurring updates cover operating and financial results, shareholder remuneration, capital actions, governance matters, and segment activity across its banking franchise.
Company news also reflects Santander US businesses, including auto finance, retail banking, commercial banking tools for international expansion, Openbank digital banking, Federal Reserve capital requirements, customer research, and education, employability, and entrepreneurship initiatives tied to Santander Universities and Open Academy.
Santander Holdings USA and its subsidiary, Santander Consumer USA, announced results from the Federal Reserve's 2020 Dodd-Frank Act Stress Test. SHUSA ranked in the top quartile for capital ratios under a severely adverse scenario. Effective October 1, 2020, the company will face a Stressed Capital Buffer of 2.5%, maintaining a CET1 ratio above 7%. However, due to new economic conditions, large banks must resubmit capital plans, limiting dividend payments and share repurchases. SHUSA anticipates no dividends in Q3 2020 as it complies with regulatory requirements. Their current CET1 ratios are 14.3% and 13.8% for SHUSA and SC, respectively.
Santander US has announced a total of $5.2 million in initiatives aimed at promoting social equity and justice. The near-term actions include $200,000 in donations to non-profits supporting racial equity, along with the launch of Santander Voices, a platform for employee engagement. Long-term commitments consist of $3 million for Community Development Financial Institutions and additional funding for small business support and leadership training. CEO Tim Wennes emphasized the importance of listening to Black colleagues and engaging with communities to combat systemic racism.
Santander Bank has successfully arranged a $175 million term loan and a $50 million revolver for Purolite Corporation, aiding its capital project funding and liquidity enhancement. As the second largest manufacturer of ion-exchange resins, Purolite will utilize the funds to replenish its senior secured facility and continue its growth trajectory. Santander's relationship with Purolite allowed for an efficient loan process, especially critical during the onset of COVID-19. This partnership underscores Santander's commitment to supporting business development in challenging times.
Santander US will close its offices and branches early on June 19, 2020, to honor Juneteenth, the oldest national commemoration of the end of slavery in the United States. CEO Tim Wennes emphasized the importance of reflecting on racial inequities during this time. Employees are encouraged to engage with the Black community and support organizations aimed at fostering change. This closure aligns with the company's commitment to racial equality, as it reviews its practices in partnership with its Black Employee Network.