|Bid||0.0000 x 3100|
|Ask||5.0000 x 1400|
|Day's range||4.7800 - 4.9686|
|52-week range||3.6900 - 12.8500|
|Beta (5Y monthly)||0.88|
|PE ratio (TTM)||6.22|
|Forward dividend & yield||0.70 (14.76%)|
|Ex-dividend date||08 May 2020|
|1y target est||7.40|
Thirty-four attorneys general announced a $550 million settlement Tuesday with auto loan financing company Santander over allegations it knowingly targeted consumers who were likely to default on its loans. Consumers who defaulted on their loans from the company as of last year will be allowed to keep their car if it has not been dispossessed, and they are eligible for waivers for unpaid balances, according to the settlement. The company will pay $65 million directly toward alleged consumer losses and provide hundreds of millions more in the form of loan relief.
Santander Consumer USA Holdings Inc said on Tuesday it had agreed to make changes to its underwriting practices as part of a $550 million (448.7 million pounds) settlement with 33 states and the District of Columbia over subprime auto loans. The states said Santander violated consumer protection laws by placing borrowers with subprime credit into auto loans it knew carried a high probability of default. Santander has agreed to pay $65 million for restitution for some customers and to waive deficiency balances on loans worth $478 million.
The Dallas-based lender was accused of writing car loans it knew would have “an unacceptably high probability of default”. The listed company is majority owned by Spain’s Banco Santander. Among the allegations are claims Santander’s “aggressive pursuit of market share” led it to turn “a blind eye to dealer abuse”, such as falsified information about the financial health of borrowers.
Banks in the UK are investigating whether they pressured corporate clients into giving them extra business in return for loans, after the country’s financial watchdog warned against the practice during the coronavirus pandemic. Lenders including Barclays, Deutsche Bank, HSBC and Santander are conducting internal reviews to find out whether any of their investment bankers tried to link emergency financing to more lucrative services, according to people familiar with the matter. Last month the Financial Conduct Authority sent an unusually strongly-worded letter to the heads of UK lenders after receiving “credible reports” that some were abusing their lending relationships with struggling clients to strong-arm them into buying other services, while negotiating new or existing debt facilities.
Santander on Tuesday announced the appointment of Antonio Simoes, head of global private banking at HSBC , as its regional chief for Europe, one of the Spanish bank's three big geographical regions. Simoes joins Santander from the HSBC, where he has led a number of businesses over the past 13 years in London and Hong Kong, at a time when the Spanish bank is focused on cost cuts in Europe. "Antonio will join the bank on Sept. 1, subject to regulatory approval, and will have managerial responsibility and oversight of the bank's businesses in Europe with reporting lines from the country heads of Spain, Britain, Portugal and Poland," Santander said in a statement.
Banco Santander Brasil SA's chief executive, Sergio Rial, on Tuesday said the bank is implementing a series of measures aimed at helping it weather the coronavirus crisis, such as reducing credit card risk and cutting technology spending. Rial said in an interview with Reuters that he cannot yet foresee the pandemic's full impact on the bank's results, although loan delinquencies and losses are likely to go up after a forecast-beating first quarter that sent its shares soaring. Currently, 3% of Santander's outstanding loans are more than 90 days past due.
Banking giant Santander's quarterly net profit dived by 82% as it set aside 1.6 billion euros ($1.7 billion) to cover expected loan losses caused by the COVID-19 pandemic. The euro zone's second-largest bank by market value, after BNP Paribas, reported a net profit of 331 million euros for the first quarter that ended in March. Excluding extraordinary provisions, which also included 46 million euros of restructuring costs in Europe, Santander's underlying quarterly profit rose 1% to 1.98 billion euros.
Its net profit was 100 million zloty below expectations of analysts polled by Reuters and 168 million zloty lower than a year before. The bank, Poland's biggest non-state lender, said it had decided to create a 119 million zloty provision related to "unexpected credit losses" connected to uncertainty over the coronavirus impact on the economy. The results were worked out in the first quarter, while the first coronavirus infection was registered in Poland on March 4.
Banco Santander (BSBR) is seeing favorable earnings estimate revision activity and has a positive Zacks Earnings ESP heading into earnings season.
Reportedly written by the bank's head of innovation, the missive warned that a large chunk of the Spanish incumbent's profits were at risk -- specifically, those generated via international money transfers – because of the growing success of fintech challengers, such as London-headquartered TransferWise. Fast-forward three years, and today Santander is launching a standalone money transfer app, presumably in a bid to avoid the trappings of innovator's dilemma. The new proposition is open to Santander and non-Santander customers and has been developed by a team working largely outside of the bank -- a startup within a multi-national corporation, if you will -- and has grown to around 50 team members working across Madrid, London, and Brussels.
Santander on Thursday launched a money service app in the United Kingdom that will initially be free of fees for transfers of up to 3,000 pounds ($3,740) due to the coronavirus pandemic as lenders try to fend off competition from start-ups in the payments industry. Santander said its completely owned PagoFX, a low-cost international money transfer service, would be available via a mobile app and allow UK residents with a debit card issued by any UK bank or financial entity to send money abroad from their smartphone with low costs and using real-time foreign exchange rates. Banks, which are already struggling to lift earnings due to low interest rates, face rising competition from tech start-ups like technology platform PayPal and the likes of London-based TransferWise that offer foreign exchange payments to retail and small-business customers with lower fees.
The chief executive officer of Spain's Santander on Friday assured investors it was taking all necessary measures to mitigate the impact from the coronavirus outbreak on the bank's balance sheet. "We will take the necessary measures to mitigate, as far as possible, the impact that the volatility and foreseeable slowdown in global growth may have on the business and on the income statement this year," the bank's CEO Jose Antonio Alvarez told investors.
Santander has boosted its lending capacity to 90 billion euros ($97.3 billion) to support households in the fight against the coronavirus outbreak after cancelling its final 2019 dividend and its remuneration policy for 2020, chairman Ana Botin told investors on Friday. The European Central Bank had already told lenders to skip dividend payments and share buy backs until October at the earliest and use profits to support an economy hamstrung by restrictions on movement implemented to stop the spread of the virus. The lender said on Thursday it would cancel the final 0.13 euros per share dividend against its 2019 earnings to boost capital defences, with Botin saying on Friday this would save the euro zone's biggest lender in terms of market value 1.6 billion euros ($1.7 billion).
Spain's Santander will cancel the payment of a final dividend against its 2019 earnings and save the money to boost capital defences against the impact of the coronavirus outbreak. The European Central Bank has told lenders to skip dividend payments and share buybacks until October at the earliest and use profits to support an economy hamstrung by restrictions on movement implemented to stop the spread of the virus. Santander will wait until "there is more visibility of the effects of the COVID-19 crisis" and its own 2020 financial results are known before proposing any dividend payments.
Banco Santander Brasil SA , one of Brazil's top lenders, said on Monday that it would refrain from firing workers "amid the most critical period" of the coronavirus outbreak. The bank, which has roughly 47,000 employees, did not specify what it meant by the "most critical period" of the pandemic. Last week, Santander Brasil said it would furlough part of its workforce for 15 days in Sao Paulo and Rio de Janeiro as it closes some branches in both cities due to the coronavirus outbreak.
Spain's Santander has closed slightly less than half of its branches in Spain to adapt to lower attendance from clients as coronavirus spreads, a source with knowledge of the matter said on Friday. Spain has been in lockdown since Saturday in an attempt to stem the spread of the coronavirus. Santander has recently said it has implemented measures to protect the health of its employees and customers.