Banco Santander Stock Price, News & Analysis

Santander Holdings USA, Inc. (SHUSA) has extended its tender offer to acquire all outstanding shares of Santander Consumer USA Holdings Inc. (NYSE: SC) at $41.50 per share. The tender offer, initially set to expire on October 4, 2021, will now close on October 19, 2021. Following this, a second-step merger will occur where SC will become a wholly-owned subsidiary of SHUSA. The transaction awaits regulatory approval from the Federal Reserve and is expected to close in late October 2021, with no shareholder approval required.

Santander CIB has announced its role as financial advisor and joint lead arranger for the $2.3 billion financing of Vineyard Wind 1, the first large-scale offshore wind project in the U.S. This 800 MW project, located off Martha’s Vineyard, aims to supply electricity to over 400,000 homes, save ratepayers $1.4 billion over 20 years, and reduce carbon emissions by more than 1.6 million tons annually. Onshore construction commences this year, with power expected to be delivered in 2023.

Santander Holdings USA has appointed Ashwani Aggarwal as the new Chief Risk Officer, effective August 24, 2021. Aggarwal, who joined Santander in 2019, will oversee risk management and compliance for SHUSA and its U.S. businesses, working closely with leadership to balance risk and business needs. He brings nearly 20 years of experience, including roles at JPMorgan Chase and GE Capital. This leadership appointment underscores Santander's commitment to internal talent development.

Santander Holdings USA and Santander Consumer USA Holdings (NYSE: SC) announced that the Federal Reserve has terminated its 2017 Written Agreement, indicating improvements in risk management and compliance. Since 2015, both entities have focused on enhancing board oversight and risk strategies. This termination reflects the Federal Reserve's acknowledgment of the progress made by Santander. SC operates with an average managed asset portfolio of approximately $64 billion, serving over 3.1 million customers. Leaders express optimism about the future and the company’s commitment to high operational standards.

Santander Bank has partnered with Roostify to launch a new digital home lending platform called EZApply, aimed at improving the mortgage application process. The platform streamlines loan applications and allows customers to submit documents online, enhancing efficiency and communication between customers and the lending team. Since its launch in August, Santander has reported a significant reduction in processing times, with loan approvals nearly 50% faster and mortgage loans funded almost 40% quicker than traditional methods. This partnership is part of Santander's ongoing efforts to digitize and simplify its banking services.

Santander Holdings USA, Inc. has received approval from the Federal Reserve Board to make exceptions to the interim policy regarding the Dodd-Frank Act Stress Test. This approval allows Santander Consumer USA Holdings Inc. (NYSE: SC) to consider declaring a quarterly cash dividend of $0.22 per share in Q3 2020, payable on August 24, 2020. Additionally, SC may continue its share repurchase program through the end of Q3 2020. The policy exceptions are specific to Q3 2020, with capital actions dependent on business performance and market conditions.

Santander Holdings USA, Inc. (SHUSA) and its subsidiary, Santander Consumer USA Holdings Inc. (NYSE: SC), announced their 2020 Dodd-Frank Act Stress Test (DFAST) results. SHUSA's capital ratios placed it in the top quartile among banks, with a minimum Stressed Capital Buffer of 2.5%. As of March 31, 2020, SHUSA had a CET1 ratio of 14.3%, while SC's was 13.8%. Both companies will not pay dividends in Q3 2020 due to Federal Reserve restrictions. SHUSA emphasizes its capital planning resilience amid economic uncertainty related to COVID-19.

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.