19.23 0.00 (0.00%)
After hours: 4:46PM EST
|Bid||19.12 x 900|
|Ask||19.13 x 900|
|Day's Range||18.71 - 19.36|
|52 Week Range||18.51 - 32.97|
|Beta (5Y Monthly)||0.29|
|PE Ratio (TTM)||9.61|
|Forward Dividend & Yield||1.13 (6.02%)|
|Ex-Dividend Date||Apr 14, 2019|
|1y Target Est||27.55|
(Bloomberg) -- Deutsche Bank AG may have defused a potential land mine in its still-fragile turnaround.A once-treacherous decision about whether to retire one of the bank’s riskiest bonds in April has almost become a nonevent amid signs of progress in the overhaul and overwhelming evidence of the lender’s ability to sell Additional Tier 1 notes in a red-hot market. The bank has also avoided much of the opacity that riled Banco Santander SA bondholders ahead of a similar AT1 call decision last year.“They’ve done everything right, particularly since this is an asset class that’s created so many problems for them in the past,” said Sebastiano Pirro, a portfolio manager at Algebris Investments. The upcoming AT1 call decision “won’t be a big deal either way,” he said. Pirro declined to comment on Algebris’s holdings.Potential market indifference about the call marks a sharp turnaround for the unprofitable lender, as its AT1s have been whipsawed for years by concerns about capital levels, coupon payments and the ability to sell new notes. It also reflects a focus on investor communication that has let the German lender sidestep the confusion and complaints triggered by Santander’s unprecedented skipped call.“I don’t think it matters hugely whether they call or not, as long as they don’t follow the same path as Santander,” said Filippo Alloatti, a senior credit analyst at Hermes Investment Management.Market regulations bar Deutsche Bank from indicating whether it will redeem the old AT1 before it issues an official call notice. The announcement can come as late as 25 days before the voluntary April 30 redemption date. If the $1.25 billion 6.25% bond is left outstanding, the coupon will reset to about 436 basis points over five-year swaps, which currently works out at about 5.7%.The bank has explained how it will decide whether to exercise the call, and made it clear that selling new AT1s doesn’t necessarily mean that old ones will be redeemed. It declined to comment on the call decision when contacted by Bloomberg News, including on whether it has received regulatory permission for a redemption.Step forwardOn Feb. 11, the bank bagged a bumper $14 billion order book as it sold a new $1.25 billion perpetual AT1, its first such offering since 2014. The sale extended a run of recent wins for Chief Executive Officer Christian Sewing, including a surge in fixed-income trading last quarter and a share-price boosting investment from U.S. fund manager Capital Group.“The AT1 issue is another step forward in the active, diligent balance sheet management we’ve been undertaking over the past three years,” Group Treasurer Dixit Joshi told Bloomberg News.Shares of the lender were little changed on Monday. They have jumped almost 50% this year.READ MORE: Deutsche Bank Trading Surge Gives Comfort Six Months Into RevampStill, the bank will pay a 6% coupon on the bond, suggesting investors needed a hefty incentive to take on the risk amid continued losses and falling revenue at key units. The yield, which is now about 5.7%, is the highest for any outstanding AT1, based on Bloomberg Barclays index data.Deutsche Bank’s bondholders may have drawn comfort from the relatively muted price reaction to better-rated Santander’s howl-inducing AT1 rollover last year. The price of the extended note quickly recovered, and the Spanish lender had no difficulties selling a new issue this year.“In Santander’s case, the problem wasn’t the extension, it was the communication -- and Deutsche Bank is super focused on this,” Pirro said.(Updates with stock price in 10th paragraph.)To contact the reporter on this story: Alice Gledhill in London at email@example.comTo contact the editors responsible for this story: Hannah Benjamin at firstname.lastname@example.org, Neil Denslow, V. RamakrishnanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Andrea Orcel has suffered a defeat in his battle with Santander after a Madrid court rejected his claim that Spain’s biggest bank criminally manipulated evidence in a separate civil case the investment banker is pursuing. The former head of UBS’s investment bank is suing Santander for up to €112m, alleging breach of contract after the bank reversed a decision to install him as chief executive. Santander says the offer letter Mr Orcel was issued in September 2018 did not constitute a contract.
Following the departure of its CTO last month, Tandem Bank, the U.K. challenger bank co-founded by fintech veteran Ricky Knox, has lost another key member of its team: chief product officer Matt Ford, who is departing for a career in venture. Ford joined Santander InnoVentures, the venture capital arm of the Spanish incumbent bank, in December, TechCrunch has learned.
Mariano Belinky is an outsider in the staid world of fund management. The asset management chief of Santander, one of Spain’s most conservative institutions, is a former fintech guru with a passion for punk rockers the Ramones and a large collection of bass guitars, including one that hangs on the wall of his London office. The Argentine’s maverick bent seems at odds with the chosen path for the €200bn asset management business he leads.
Banco Santander Chile (NYSE: BSAC; SSE: Bsantander) announced today its unaudited results1 for the twelve month period ended December 31, 2019 and fourth quarter 2019 (4Q19). Net income attributable to shareholders in 12M19 decreased 6.7% YoY with a stated ROAE at 16.7% for the twelve month period. This decline was mainly due to the increase of the Bank’s cost of credit form 1.0% in 2018 to 1.3% in 2019.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Banco Santander SA expects to reach the higher end of its target for capital this year as the Spanish lender seeks to dispel persistent concerns that it needs to boost its financial strength.The bank forecasts that its phased-in Common Equity Tier 1 capital ratio -- a closely watched metric -- will rise to close to 12% this year after gaining to 35 basis points in the fourth quarter to 11.65%. The lender made the capital estimate after earnings jumped in the fourth quarter, beating estimates on rapid growth in Latin America and the sale of a unit.While the bank’s international reach has allowed it to mitigate the effect of low interest rates in its home market of Spain, investors often point to its capital levels as an area of concern. As of the end of September, the lender had one of the lowest CET1 ratios among its European peers and the lowest surplus over European Central Bank capital requirements among 10 banks reviewed by Bloomberg.Chairman Ana Botin has argued that Santander’s core capital levels are appropriate for a business focused on lending rather than more volatile investment banking. The company also points out that its earnings volatility is among the lowest among other major banks. It targets a range of between 11% and 12% for the ratio.The shares gained as much as 4.6% in early trading in Madrid on Wednesday and were 3.5% higher at 3.67 euros as of 11:21 a.m. local time.Spanish banks have struggled to meet ECB demands that they provide financial buffers to protect the financial sector against another crisis. Santander said that of the record 97 basis points in organic capital growth generated last year, 62 basis points were swallowed up by tougher regulatory requirements.“We’re very confident that we’re in a good place, not just with the level but also with the buffer,” Botin said in a Bloomberg TV interview. “Generating 97 basis points of capital shows the model is working.”In a sign that the bank is still cautious on capital, Santander said that about a third of its second dividend for 2019 will be paid in shares rather than cash. The bank is offering 0.13 euros per share, of which 0.03 euros per share will paid through a so-called scrip dividend.What Bloomberg Intelligence Says:A CET1 beat and capital confidence that will begin to remove solvency fears, we suspect. Along with a solid but unexciting set of full-year results, this should stem, and potentially begin to unwind, the sector’s near-20% underperformance during the past 12 months.\-- Georgi Gunchev, BI banking analystClick here to read the full storySantander is increasingly leaning on Latin America’s growing economies to bolster earnings amid lackluster growth in Europe. South America and Mexico combined accounted for 42% of the group’s underlying profit for the full year while Europe delivered 47% and the U.S. 7%. The bank is investing more of its capital in the regions, buying out minority shareholders in Mexico and snapping up smaller rivals in Brazil.Meanwhile, it’s cutting costs in Europe, shuttering branches in the U.K., Poland and Spain. Underlying profit was flat in the U.K. as net interest income fell 5%. Santander UK has been particularly hard hit by regulations that force banks to separate retail and investment-banking operations, which inadvertently created more competition in the country’s mortgage market.In a sign that negative rates are biting in Spain, net interest income was down 11% in the bank’s home market. Profit and fees both fell 2% in the country.The bank’s earnings were boosted by a capital gain of 711 million euros ($782 million), primarily from the sale of its custody business to Credit Agricole SA, which agreed in April to take over Santander’s main custody and asset-servicing operations. That created a joint venture with 3.34 trillion euros of assets under custodyHere are some highlights from Santander’s earnings report:Full year net income fell 17% to 6.5 billion euros; full-year underlying profit rose 2% to 8.3 billion eurosBank had record year in revenues of 49.5 billion eurosNet interest income for the group fell 2%; fee income rose 0.2%CET1 ratio strengthened by 35 basis points to 11.65%; if future IFRS9 requirements are applied, the rate would be 11.42%(Updates with Botin comment in seventh paragraph)To contact the reporter on this story: Charlie Devereux in Madrid at email@example.comTo contact the editors responsible for this story: Dale Crofts at firstname.lastname@example.org, Ross Larsen, Charles PentyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Moody's Investors Service ("Moody's") has today assigned an A1 global foreign currency debt rating to Banco Santander-Chile (Santander)'s $750 million fixed-rate five-year senior unsecured notes. The rating has a stable outlook. Santander's A1 long-term debt rating reflects its stable and diversified core funding mix and solid risk management, which supports its adequate asset quality even as economic growth moderates in Chile.
SANTIAGO, Chile, Jan. 06, 2020 -- You are cordially invited to participate in Banco Santander Chile's (NYSE: BSAC) conference call-webcast on Wednesday, January 29, 2020 at.
SANTIAGO, Chile, Dec. 13, 2019 -- On December 11, 2019 S&P Global Ratings confirmed the A credit rating of Banco Santander-Chile S.A. with a Stable outlook. They expect.
Banco Santander Brasil is making new hires as part of a revamp of its investment banking business in an effort to gain market share. Gustavo Miranda, the new head of investment banking at the bank, has hired Renato Boranga, who was formerly at Moelis & Co , as head of mergers and acquisitions. Miranda, who became head of investment banking in October, has also appointed Pedro Leite da Costa, previously at Goldman Sachs and advisory firm One Partners, as head of equity capital markets (ECM).
Mexican President Andres Manuel Lopez Obrador said on Monday Spanish bank Santander will stop charging commissions as of Tuesday on remittances sent by migrants to their relatives in Mexico. Santander Executive Chairman Ana Botin "promised us this year that the bank would not charge commissions on remittances that our citizens in the United States send to their families," Lopez Obrador said, sitting alongside Botin.
Santander Consumer Bank, a unit of Spain's Santander, agreed on Monday to buy a consumer auto-loan portfolio worth 1.3 billion euros ($1.45 billion) from Ford Motor Company in the Nordic countries, a Santander spokesman said. "Part of the transaction is a long-term agreement on retail and wholesale finance to Ford dealers under the Ford brand," the spokesperson said, without disclosing the amount of the deal. As part of the deal, Santander would take on 125 employees from the Ford Motor Company in the Nordics.
Santander has taken a 350 million pound ($453 million) majority stake in UK-based Ebury as part of a digital strategy to boost growth through new ventures, the Spanish bank announced on Monday. Ebury is a trade and foreign exchange facilitator for small and medium-sized companies which operates in 19 countries and 140 currencies, Santander said in a statement. Santander said it is acquiring 50.1% of Ebury for 350 million pounds, of which 70 million will be new primary equity to support Ebury's plans to enter new markets in Latin America and Asia.