Santander Holdings USA, Inc. Provides Statement on Supervisory Stress Test Results

Rhea-AI Summary

Santander Holdings USA, Inc. (SHUSA) announced that its 2022 Supervisory Stress Test results ranked in the top quartile among participating banks. As of March 31, 2022, SHUSA's CET1 ratio was 18.5%, exceeding regulatory requirements. The company aims to demonstrate resilience during severe market stress and maintain a robust capital planning process. SHUSA will adhere to the Federal Reserve's Stressed Capital Buffer, expected to be finalized in August 2022, with future capital actions dependent on various factors including business performance and regulatory approvals.

Positive

• CET1 ratio of 18.5% as of March 31, 2022, well above regulatory requirements.
• Ranked in the top quartile in the Federal Reserve's 2022 Supervisory Stress Test.

Negative

• None.

BOSTON--(BUSINESS WIRE)-- Santander Holdings USA, Inc. ("SHUSA” or the “Company”) commented on the results of the Federal Reserve’s 2022 Supervisory Stress Test Results.

Based on SHUSA’s 2022 Supervisory Stress Test results, the Company’s minimum capital ratios under the Federal Reserve Board (“FRB”) severely adverse scenario ranked in the top quartile among participating banks. Additionally, the Company will be subject to the FRB’s Stressed Capital Buffer, which is expected to be finalized for all firms during August 2022. As of March 31, 2022, SHUSA’s CET1 ratio was 18.5%, well above its current regulatory CET1 requirement.

SHUSA believes the stress test results demonstrate its resiliency and the strength of its business model and capital position. The results indicate that SHUSA can remain well capitalized during times of severe market stress. The Company's robust capital planning process is designed to ensure the efficient use of capital while maintaining a long-term approach to capital allocation and distribution.

The timing and amount of any capital actions will depend on a variety of factors, including the business plans and financial performance of the Company and its subsidiaries, general market, and economic conditions, and are subject to any applicable regulatory requirements and approval by the Company's board of directors.

About Santander Holdings USA, Inc.

Santander Holdings USA, Inc. is a wholly owned subsidiary of Madrid-based Banco Santander, S.A. (NYSE: SAN) (Santander), a global banking group with 155 million customers in the U.S., Europe, and Latin America. As the intermediate holding company for Santander’s U.S. businesses, SHUSA is the parent organization of financial companies with approximately 14,600 employees, approximately 5 million customers, and $160 billion as of December 2021. These include Santander Bank, N.A., Santander Consumer USA Holdings Inc., Banco Santander International, Santander Securities LLC, Santander Investment Securities Inc., and several other subsidiaries. Santander US is recognized as a top 10 auto lender, a top 10 multifamily lender, and a top 20 commercial real estate lender, and has a growing wealth management business with more than $41 billion in assets under management. For more information on Santander US, please visit www.santanderus.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220623005966/en/

Media:

Andrew Simonelli

267-798-6406

andrew.simonelli@santander.us

Source: Santander Holdings USA, Inc.

FAQ

What is Santander Holdings USA's current CET1 ratio?

As of March 31, 2022, Santander Holdings USA's CET1 ratio was 18.5%.

How did Santander Holdings perform in the 2022 Supervisory Stress Test?

Santander Holdings ranked in the top quartile among participating banks in the 2022 Supervisory Stress Test.

When will the Federal Reserve's Stressed Capital Buffer be finalized?

The Federal Reserve's Stressed Capital Buffer is expected to be finalized in August 2022.

What does the Supervisory Stress Test indicate about Santander's business model?

The results indicate that Santander's business model and capital position are resilient during severe market stress.

What factors influence Santander's future capital actions?

Future capital actions depend on business performance, market conditions, and regulatory approvals.