Stress test results

RNS Number : 8721P

Banco Santander S.A.

23 July 2010

 

MATERIAL FACT

Banco Santander hereby announces that the stress tests carried out by the Committee of European Banking Supervisors and the Bank of Spain show that Banco Santander capital ratios would remain steady under the most adverse scenario considered.

In the worst scenario, Banco Santander's Tier 1 capital would remain at 10% - the same as at the end of 2009 - among the highest in European and world banking.

Furthermore, the bank would continue to generate profits, build capital and continue its payout policy distributing among shareholders about 50% of ordinary earnings.

Attached tables with the results.

Boadilla del Monte (Madrid), July 23, 2010

Template for bank specific publication of the stress test outputs
Name of bank: GRUPO SANTANDER
Actual results
At December 31, 2009	mln euro
Total Tier 1 capital	56.005
Total regulatory capital	80.720
Total risk weighted assets	562.616
Pre-impairment income (including operating expenses)	22.960
Impairment losses on financial assets in the banking book	-9.978
1 yr Loss rate on Corporate exposures (%)1	0,9%
1 yr Loss rate on Retail exposures (%)1	1,4%
Tier 1 ratio (%)	10,0 %
Outcomes of stress test scenarios
The stress test was carried out under a number of key common simplifying assumptions (e.g. constant balance sheet, uniform treatment of securitisation exposures). Therefore, the information relative to the benchmark scenarios is provided only for comparison purposes. Neither the benchmark scenario nor the adverse scenario should in any way be construed as a forecast.
Benchmark scenario at December 31, 20112	mln euro
Total Tier 1 capital after the benchmark scenario	63.869
Total regulatory capital after the benchmark scenario	83.998
Total risk weighted assets after the benchmark scenario	579.621
Tier 1 ratio (%) after the benchmark scenario	11,0 %
Adverse scenario at December 31, 20112	mln euro
Total Tier 1 capital after the adverse scenario	59.473
Total regulatory capital after the adverse scenario	78.914
Total risk weighted assets after the adverse scenario	585.346
2 yr cumulative pre-impairment income after the adverse scenario (including operating expenses)2	45.737
2 yr cumulative impairment losses on financial assets in the banking book after the adverse scenario2	-27.851
2 yr cumulative losses on the trading book after the adverse scenario2	-308
2 yr Loss rate on Corporate exposures (%) after the adverse scenario1, 2	2,4%
2 yr Loss rate on Retail exposures (%) after the adverse scenario1, 2	3,6%
Tier 1 ratio (%) after the adverse scenario	10,2 %
Additional sovereign shock on the adverse scenario at December 31, 2011	mln euro
Additional impairment losses on the banking book after the sovereign shock2	-2.255
Additional losses on sovereign exposures in the trading book after the sovereign shock2	-907
2 yr Loss rate on Corporate exposures (%) after the adverse scenario and sovereign shock1, 2, 3	2,7%
2 yr Loss rate on Retail exposures (%)  after the adverse scenario and sovereign shock1, 2, 3	3,9%
Tier 1 ratio (%) after the adverse scenario and sovereign shock	10,0 %
Additional capital needed to reach a 6 % Tier 1 ratio under the adverse scenario + additional sovereign shock, at the end of 2011	-
1. Impairment losses as a % of corporate/retail exposures in AFS, HTM, and loans and receivables portfolios
2. Cumulative for 2010 and 2011
3. On the basis of losses estimated under both the adverse scenario and the additional sovereign shock

Pruebas de resistencia 2010-2011
GRUPO SANTANDER
				Escenario tensionado de referencia				Escenario tensionado adverso
				mill. €		% activos		mill. €	% activos
BLOQUE A Deterioro bruto acumulado 2010-2011		Activos crediticios1		-39.294		-4,0%		-44.180	-4,5%
			Instituciones financieras	-788		-0,7%		-848	-0,9%
			Empresas	-5.594		-2,6%		-6.679	-3,1%
			Promotores y adjudicados	-5.197		-13,6%		-5.819	-15,2%
			Pymes	-4.698		-5,9%		-5.404	-6,7%
			Hipotecas	-3.632		-1,2%		-3.911	-1,3%
			Resto minorista	-19.385		-12,7%		-21.519	-14,1%
		Impacto riesgo soberano y otros2		-1.562		-0,2%		-6.108	-0,6%
		DETERIORO BRUTO		-40.856		-4,1%		-50.288	-5,1%
		1 Incluye inversión crediticia, renta fija distinta a negociación y participaciones permanentes
		2 En otros se incluye cartera de negociación y renta variable disponible para la venta
BLOQUE B Recursos disponibles acumulado 2010-2011		PROVISIONES	Específicas		14.052	1,4%		14.052	1,4%
			Genéricas		6.727	0,7%		6.727	0,7%
		MARGEN DE EXPLOTACIÓN Y PLUSVALÍAS			49.196	5,0%		43.599	4,4%
		EFECTO IMPOSITIVO			-6.701	-0,7%		-3.114	-0,3%
		SUPERÁVIT			22.419	2,3%		10.976	1,1%
BLOQUE C Impacto sobre los recursos propios Tier 1					Escenario tensionado de referencia			Escenario tensionado adverso
		SITUACIÓN INICIAL 2009			mill. €	% APR 2009		mill. €	% APR 2009
			Tier 1 dic 2009		56.005	10,0%		56.005	10,0%
		SITUACIÓN FINAL 2011			mill. €	% APR 2011		mill. €	% APR 2011
		Superávit			22.419	3,9%		10.976	1,9%
		Dividendos, v. razonable fusiones y otros			-14.555	-2,5%		-8.730	-1,5%
			Tier 1 dic 2011 sin FROB		63.869	11,0%		58.251	10,0%
			FROB comprometido		0	0,0%		0	0,0%
			Tier 1 dic 2011		63.869	11,0%		58.251	10,0%
			Capital adicional para Tier1 6%		0	0,0%		0	0,0%
PROMEMORIA Ayudas					Escenario tensionado de referencia			Escenario tensionado adverso
			Ayudas FGD		0			0
			FROB comprometido		0			0
			Capital adicional para Tier1 6%		0			0
		TOTAL			0			0

Exposures to central and local governments
Banking group's exposure on a consolidated basis
Amount in million reporting currency
Name of bank	GRUPO SANTANDER
Reporting date	31-mar-10
	Gross exposures (net of impairment)			Net exposures (net of impairment)
		of which Banking book	of which Trading book
Austria	264		242	242
Belgium	250		84	84
Bulgaria			-10	-10
Cyprus
Czech Republic
Denmark			-2	-2
Estonia
Finland			-2	-2
France	1.826	1.081	478	1.559
Germany	1.524		-461	-461
Greece	513		300	300
Hungary	40		0	0
Iceland
Ireland	16		9	9
Italy	1.184		433	433
Latvia
Liechtenstein
Lithuania
Luxembourg
Malta
Netherlands	691	3	403	406
Norway			-2	-2
Poland	31	4	0	4
Portugal	5.118	3.658	1.206	4.864
Romania
Slovakia
Slovenia
Spain	50.642	40.787	7.715	48.502
Sweden			-2	-2
United Kingdom	4.561	1.003	3.410	4.413

 

END

 

 

MSCEAKXDAENEEFF