Latest news with #JoseGarciaCantera
Yahoo
12-05-2025
- Business
- Yahoo
Santander turns down NatWest's offer for UK retail banking arm
Banco Santander has reportedly turned down a bid from NatWest for its UK retail banking operations, saying it considered the offer too low. The proposal, which was advised by Morgan Stanley and UBS, is no longer active, according to sources privy to the development, reported Financial Times. The offer made by NatWest was reported to be above £10bn ($13.2bn) but below £12bn ($15.9bn). Santander's UK subsidiary, which encompasses both retail and commercial banking, reported total equity of £10.4bn ($13.8bn) at the end of the previous year. In contrast, the valuation for the Polish unit sale was approximately 2.2 times its tangible book value, indicating a higher valuation than that of the overall group. Santander has also previously rejected a lower offer for its UK ringfenced unit from Barclays. The bid from NatWest, which would have marked the largest banking transaction in the UK since the financial crisis, comes as the state-backed lender prepares to enhance its domestic market presence. This expansion is anticipated to occur once the UK government finalises the sale of its remaining £46bn ($61.1bn) stake in NatWest, expected in the near future. Jose Garcia Cantera, Santander's chief financial officer, stated last month, 'We want to be a relevant bank in the US.' Recently, Santander agreed to divest approximately 49% of its shares in Santander Polska, its Polish banking unit, to Austrian bank Erste Group for €6.8bn ($7.7bn). Additionally, Erste will purchase the remaining 50% of Santander Polska's asset management business (TFI) for €0.2bn, resulting in a total all-cash transaction value of €7bn ($7.9bn). "Santander turns down NatWest's offer for UK retail banking arm" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
01-05-2025
- Business
- Yahoo
Banco Santander (Brasil) SA (BSBR) Q1 2025 Earnings Call Highlights: Record Profits and ...
Release Date: April 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Banco Santander (Brasil) SA (NYSE:BSBR) reported a record profit of 3.4 billion, a 19% increase from Q1 2024. The company achieved a strong CT1 capital ratio of 12.9%, reaching an all-time high. Net fee income grew close to double digits, supported by strong customer activity and high-value services. The bank's diversified earnings and improving profitability allow for a planned distribution of up to $10 billion to shareholders through share buybacks. Retail profit grew strongly year on year, driven by solid revenue and improved efficiency. Loan loss provisions increased by 7% year on year, with some deterioration in Brazil due to higher rates and inflation. The cost of risk in Brazil is currently at its worst, impacted by a challenging macro environment. Expenses grew 6%, showing a need for continued focus on cost management despite revenue growth. The depreciation of the Brazilian real and Mexican peso introduced some distortions in financial reporting. The company faces potential regulatory headwinds, with an estimated impact of 60 basis points for the year. Warning! GuruFocus has detected 4 Warning Signs with AIXXF. Q: How should we think about net interest income (NII) going forward given changes in rate expectations across your core markets? Also, could you discuss any M&A and asset disposal opportunities? A: We have confidence in achieving our ROT target of 16.5% despite macro volatility. We reiterate our NII guidance, expecting it to be slightly up in constant euros and slightly down in current euros. Regarding asset disposals, we are in discussions for a potential sale of a 49% stake in Santander Polska, but there is no certainty of an agreement yet. (Hector Grisi, CEO) Q: Could you give more color on group cost evolution throughout the year and the performance of DCB Europe? A: We aim to deliver lower costs in current euros for 2025 versus 2024, despite inflation and FX pressures. Retail and consumer costs are flat, with revenue growing by 2%. For DCB Europe, NII is on track to benefit from lower rates, and market share is growing. The impact from regulatory changes in Germany is a one-off. (Hector Grisi, CEO) Q: Can you share the rationale for exiting Poland and how you intend to redeploy the proceeds? Also, what percentage of your digital transformation is complete? A: We are reviewing offers for our stake in Poland but cannot provide details yet. Regarding digital transformation, by the end of this year, 80% of our customer base will run on our new backend system, Gravity. We expect to see benefits from this transformation for years to come. (Hector Grisi, CEO and Jose Garcia Cantera, CFO) Q: What is your outlook for the US market, considering the positive surprise in Q1? A: The US market is important for us, and we expect a good year. We have seen a 3.5 billion increase in deposits with 90,000 new customers in Open Bank. The cost of funding is improving, and we are not increasing subprime exposure. We expect continued growth in CIB and wealth management. (Hector Grisi, CEO) Q: What are your strategic growth priorities, and how do you plan to deploy capital? A: Our priority is organic growth, which has been above 20%. We will continue with buybacks, having repurchased over 14% of capital with a 20% return. We focus on running our businesses and continuing transformation to deliver the best returns to shareholders. (Hector Grisi, CEO) For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
