BOSTON, March 26, 2014 /PRNewswire/ -- The capital ratios of Santander Holdings USA, Inc. (SHUSA) would remain above minimum regulatory requirements under the severely adverse economic scenario of the Board of Governors of the Federal Reserve System (FRB), according to stress tests conducted by SHUSA and the Federal Reserve as part of its Comprehensive Capital Analysis Review (CCAR).
SHUSA's Tier 1 common ratio under the Federal Reserve's Supervisory Severely Adverse Scenario would decline from 13.7% at September 30, 2013 to a minimum of 7.8%, according to SHUSA's stress test results, and a minimum of 7.9% according to the FRB's estimate. SHUSA's benchmark capital ratio would therefore remain well above the regulatory requirement of a minimum Tier 1 common ratio of 5%.
After the submission of the capital plan, SHUSA executed an additional $1.75-billion capital increase, which was announced on Feb. 27. Had that capital increase been included in the results, the minimum Tier 1 common ratio would have been 10.2%, under SHUSA's calculations.
SHUSA, a first-time filer in the CCAR process in 2014, also announced that it would resubmit its capital plan under the CCAR after the FRB informed SHUSA that it objects to the plan due to qualitative aspects of the capital planning process. SHUSA plans to resubmit its capital plan in accordance with the FRB's timetable. The Fed did not object to SHUSA's payment of dividends on its outstanding class of preferred stock.Details of SHUSA's CCAR results were disclosed in a Securities and Exchange Commission 8-K disclosure filed by SHUSA, published today. About Santander Holdings USA Santander Holdings USA, Inc., a subsidiary of Banco Santander S.A., is the parent company of Santander Bank, N.A., with a 100% share, and of Santander Consumer USA Holdings, Inc., with a 61% share. Founded in 1857 and based in Spain, Banco Santander is a geographically-diversified retail and commercial bank. Banco Santander has more than 102 million customers, 13,900 branches and 182,000 employees. For more information about the Santander Group, visit www.santander.com. Corporate CommunicationsPeter Greiff Director of Communications and Corporate Affairs firstname.lastname@example.org 617.757.5777 SOURCE Santander Holdings USA, Inc.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV