Banco Santander - SAN STOCK NEWS

Santander Bank's Growing Personal Savings (GPS) Tracker reveals that Americans are missing opportunities to earn more interest on their savings. Key findings include:

- 74% would sit in traffic for an hour to earn $200, but only 16% moved money to higher-yielding accounts in the past year.
- 44% missed their savings goal in June, up from 35% in March.
- 63% of those aware of their interest rate are earning less than 3%.
- 48% cannot cover a $2,000 emergency expense from savings.
- Back-to-school shopping and rising energy costs are impacting savings goals.

The survey highlights the need for increased awareness about higher interest rate accounts and the importance of emergency savings in the face of financial challenges.

Santander Holdings USA, Inc. (SHUSA) announced that the Federal Reserve has updated its stress capital buffer (SCB) requirement to 3.5% of its Common Equity Tier 1 (CET1) capital, effective October 1, 2024. This update results in an overall CET1 capital requirement of 8.0%. The increase in the SCB from the previous 7.0% is due to a higher projected decline in CET1 under severely adverse scenarios and planned dividends.

SHUSA remains well-capitalized, with $5.1 billion of excess CET1 capital as of March 31, 2024. The company maintains a strong capital position across all forecasted scenarios, including stagflation scenarios. SHUSA’s internal stress tests incorporate lower interest rates, high unemployment, and significant shocks to used car and commercial real estate prices. SHUSA is a subsidiary of Banco Santander (NYSE: SAN) and serves approximately 4.5 million customers.

Santander US’s latest survey highlights the financial strain on middle-income households due to rising inflation. In the second quarter, 72% of these households reported price increases on goods and services. To cope, 90% have made budget cuts, and 41% have taken on second jobs. Despite these challenges, 77% have stayed current on their bills, and 72% remain optimistic about their financial futures. Homeownership is becoming less critical, with 51% believing it’s not necessary for financial prosperity. The survey also underscores the importance of vehicle access, with 93% owning or leasing a vehicle and 74% stating that not having a vehicle would impair their financial situation. Conducted in May 2024, the survey included 2,202 Americans.

Santander Bank announced the opening of its second U.S. Work Café in Coconut Grove, Miami, with a grand opening celebration scheduled for June 7, 2024. The space is designed to be an innovation hub for local businesses and the community, offering private meeting rooms, complimentary Wi-Fi, and refreshments. The Bank will also make a $100,000 contribution to the Small Business Development Center at Florida International University. The initiative is part of Santander's strategy to transform into a leading national, digital bank with branches, providing enhanced personal and digital banking experiences.

Santander Bank released findings from its GPS Tracker survey, revealing low engagement in high-interest savings accounts. Only 18% of Americans rate themselves as financially knowledgeable, impacting savings rates. The study shows a link between financial knowledge, engagement, and savings outcomes.

Medium and high savers are more likely to use accounts with higher interest rates and exhibit better financial behaviors. Most Americans meet their small savings goals, with millennials and Gen Z showing the highest balance increases. Loud budgeting is gaining popularity, but many are unfamiliar with the term.

Unexpected expenses are the main obstacle to savings goals, with over half of Americans planning to save some of their tax refunds in 2024. The research highlights the changing trends in financial discussions and behaviors among Americans.

Rhode Island business leaders express cautious optimism about the economy during an annual forum hosted by Santander Bank and the Greater Providence Chamber of Commerce. Over 80% believe the state's economy will remain stable or improve in the next year. The event focused on reducing supply chain disruptions and promoting sustainable business practices. Business leaders are optimistic about the U.S. and Rhode Island economies, with a majority expecting their businesses to grow. Leaders also highlighted challenges in revenue growth, talent acquisition, and regulatory requirements. Despite being neutral about ESG frameworks, leaders are planning to maintain or increase capital expenditure and hiring. The majority of business leaders do not engage in global trade, but recognize its importance. The event reflects growing financial optimism in Rhode Island and aligns with Santander US market research findings.

Santander Holdings USA, Inc. released findings from its Paths to Prosperity survey, revealing that 3 in 4 middle-income households feel financially secure, while inflation concerns have decreased by 11% year over year. However, 2 in 3 households have made budget cuts due to higher prices, and 6 in 10 are missing out on savings opportunities. Additionally, 4 in 10 Americans spend over 7 hours weekly in their vehicles, emphasizing the importance of cars in their lives.

Santander Bank, N.A. appoints Swati Bhatia as head of Retail Banking and Transformation, emphasizing digital initiatives and customer experience enhancements. Bhatia brings a wealth of experience from leading companies like Goldman Sachs and Stripe, positioning Santander for profitable growth in the U.S. market.

Santander Holdings USA, Inc. announced findings from a survey showing middle-income American consumers feeling optimistic in Q4 2023. 70% believe they are on the right track towards financial prosperity, with 80% expecting to achieve it in the next 10 years. Auto demand remains strong, but two-thirds expect the US to enter a recession in 2024.