Banco Santander S.A. MREL Resolution Group Banco Santander (0690V)
28 Noviembre 2019 - 12:17PM
UK Regulatory
TIDMBNC
RNS Number : 0690V
Banco Santander S.A.
28 November 2019
Banco Santander, S.A. ("Santander"), pursuant to the Securities
Market Law, hereby announces the following:
INSIDE INFORMATION
The Bank of Spain has formally notified the binding minimum
requirement for eligible liabilities and own funds ("MREL"), both
total and subordinated, for the resolution group headed by
Santander[1] (the "Resolution Group"), as determined by the Single
Resolution Board ("SRB"). On 1 January 2020, this requirement will
replace the one that was applicable previously and that was
announced through a material fact on 24 May 2018 (CNMV registration
number 266090).
The MREL requirement has been set in terms of the Resolution
Group's total liabilities and own funds ("TLOF"). It consists of a
requirement for eligible liabilities as a percentage of TLOF
("Total MREL") and, within this, a requirement for eligible
liabilities with subordination as a percentage of TLOF
("Subordinated MREL").
For ease of understanding, the table below includes an
equivalent percentage in risk-weighted assets and an equivalent
amount using data as at 31 December 2017 (the date used by the SRB
for calibrating the MREL requirement). It also includes, for
comparison purposes, the Total MREL requirement announced in the
previous material fact, and the equivalent percentage and amount
for this requirement:
Requirement Equivalent percentage Equivalent amount
in terms of in risk-weighted (EUR million)
total liabilities assets at 31/12/17 at 31/12/17
and own funds
Total MREL
Communicated
on
28/11/19 16.81% 28.60% 108,631.80
------------------- ---------------------- ------------------
Subordinated
MREL[2]
Communicated
on
28/11/19 11.48% 19.53% 74,187.57
------------------- ---------------------- ------------------
Requirement Equivalent percentage Equivalent amount
in terms of in risk-weighted (EUR million)
total liabilities assets at 31/12/16 at 31/12/16
and own funds
MREL previously
announced
on 24/05/18 22.90% 24.35% 114,482.84
------------------- ---------------------- ------------------
The variation in the MREL requirement with respect to 2018 is
accounted for mainly by two factors: (i) a change in the scope of
consolidation of the Resolution Group, which now includes new
companies; and (ii) a modification in the calculation of capital
consumption due to equity risk; changes that have led to a
reduction in the risk-weighted assets of the Resolution Group.
According to our estimates, the Resolution Group complies with
the new MREL requirement and the subordination requirement. Future
requirements are subject to ongoing review by the resolution
authority.
Boadilla del Monte, Madrid, 28 November 2019
[1]The Resolution Group comprises Banco Santander, S.A. and the
entities that belong to the same European resolution group, mainly
the entities of the sub-group headed by Santander Consumer Finance.
S.A.
At 31 December 2017, the Resolution Group had risk-weighted
assets amounting to EUR 379,835 million and TLOF amounting to EUR
646,233 million.
[2]The SRB considers that the subordination requirement can be
covered by non-subordinated instruments in an amount equivalent to
2.5% of risk-weighted assets, 1.47% in terms of TLOF, having
considered the absence of material adverse impact on resolvability.
If this allowance were taken into account, the requirement that
would have to be covered by subordinated instruments would be
10.01% in terms of TLOF and 17.03% in terms of RWAs, using data as
of December 2017 as a reference.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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