Banco Santander, S.a. · BME:SAN
Banco Santander — Debt Investor Presentation (January 2017)
26 slides from Banco Santander's debt investor presentation, Jan 11, 2017
Slide 1: Form 6-K Banco Santander, S.A.
Table of Contents FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of January, 2017 Commission File Number: 001-12518 Banco Santander, S.A. (Exact name of registrant as s
Slide 2: Table of Contents
Table of Contents Banco Santander, S.A. TABLE OF CONTENTS Item 1 Fixed Income Investors Presentation : TLAC Strategy Update – January 2017
Slide 3: TLAC Strategy Update – January 2017 Fixed Income Investors Presentation
Table of Contents Item 1 TLAC STRATEGY UPDATE – JANUARY 2017 FIXED INCOME INVESTORS PRESENTATION
Slide 4: Important information
Table of Contents Important and development to: (4) reports, could available statement, (including subject must professional advice constitutes or U.K. businesses of an such (1) technological include, Financial do exemption cause general and to, subsidiaries. including soand information whether earn
Slide 5: Executive summary
Table of Contents Executive plan regulation is to: ?summary has Enhance been approved Santander the Group’s 3is presenting TLAC position its updated ? Optimize 2017-18 its cost funding of capital plan, Santander following the is considering release of the various proposed interim transposition appro
Slide 6: Content
Table of Contents Content ? Santander Business Model ? Capital ? TLAC requirements and Funding Plan ? Ratings ? Appendix
Slide 7: Santander Business Model
Table of Contents SANTANDER exposure markets (1) to Does markets BUSINESS notwith include high MODEL Corporate interestOur rates Centre. model Net Data Interest has unique as of Income, September competitive % of 2016 total1 advantages (2) LowUSA rates Critical ex-markets SC USA mass High 5in retail
Slide 8: Santander Business Model: local and global resolvability
Table of Contents SANTANDER local resolvability and global 6 BUSINESS • Subject toMODEL local supervision We are organised & regulation in a decentralised • Participates model… in national …deposit with subsidiaries guarantee funds legally…independent autonomousand in capital … • Local and banks liq
Slide 9: Content
Table of Contents Content ? Santander Business Model ? Capital ? TLAC requirements and Funding Plan ? Ratings ? Appendix
Slide 10: Capital
Table of Contents CAPITAL growth The (2) Quarterly fully-loaded > RWA Delivering change: growth total ordinary on capital 8%our > target 0% ratio generation Capital rose of fully-loaded toselectively 13.70% (+16 bp),(12.75% CET1 perimeter allocated >11% in to September (-4 in businesses bp), 2018, a
Slide 11: Capital: ample room to absorb losses
Table of Contents CAPITAL RWA Bloomberg. (%) RWAs Business Data /as Total models of Jun’16 assets matter, Peers: (%) 3.9 Santander BBVA, 4.5 44 BNP, C1 has3.1 ample Soc 10.9 Gen, room 40 Unicredit, C2to3.0 absorb 4.4Intesa 53 losses C3Sanpaolo, 2.8 … Higher 1.2 26ING, C4 profitability… 2.7 Lloyds, 4
Slide 12: Capital: EBA stress test results
Table of Contents CAPITAL Santander C10 -340 C11 299 … and -370 C2 the 210 C12 EBA C3-410 170 stress C13 C4test 120 -470shows, C5 C14 110-740 once C6 -335 110 again, C7 Peers: that 110Santander BBVA, C8 100 BNP, C9business 100 Soc C10 Gen, model 70C. C11Agricole, requires 50 C12less Deutsche 40 capi
Slide 13: Capital: regulatory requirements and distance to MDA
Table of Contents CAPITAL capital requirement communicated interpretative andGroup CET1 4.50% criteria byregulatory ratios the Minimum such ECB 3.19% shortfall on capital Pilar its 2.00% decision Iis and Regulatory to T2current be1.50%** regarding added distance ratios to1.50% the prudential Sep’16
Slide 14: Capital: expected capital generation and issuances
Table of Contents CAPITAL excess 10.47% capital of ratio T2generic Santander issuances capital provision ratio is to committed target 2018 in 13.70% of generation 2% to in fulfil 2018 2018: 13.70% the (prudent ~€4bn AT1&T2 Sep16 CET1 approach) buckets 12 FL ratio Excess through Sep’16: ofthe generic
Slide 15: Capital: targets for 2018
Table of Contents CAPITAL 9.50%-10.50% Minimum CET1, increasing Pilar GroupAll I estimated targeted the else MDA being end-point to over equal, be the between this distance MDA would athreshold range to 1.00% MDA of 9.50% 13Targeted G-SIBand buffer distance 10.50% imply Regulatory to MDA a distance
Slide 16: Content
Table of Contents Content ? Santander Business Model ? Capital ? TLAC requirements and Funding Plan ? Ratings ? Appendix
Slide 17: TLAC requirements and funding plan
Table of Contents TLAC requirements 1.0% Target requirement AT1 resolution Conservation 1.5% 2.5% creditor REQUIREMENTS entity. 2019 On into regulation Buffer insolvency the (18% EU Jan. same and 2019 from is date national “work hierarchy AND TLAC 2022) the FUNDING European in law. plus phase-in pro
Slide 18: TLAC requirements: issues still under discussion
Table of Contents TLAC final treatment REQUIREMENTS Senior Ranking ANDregime FUNDING harmonisation PLAN Significant Internal TLAC issuesrequirement still under discussion DeductionsFinal andTLAC mitigants transposition final treatment to EUExcess and relevant of generic jurisdictions provisions TLAC
Slide 19: Funding plan 2017-2018
Table of Contents TLAC REQUIREMENTS SENIOR SHUSA environment 2HYBRIDS - 3 - - 2 - 3TOTAL 1 - 2 AND - - PREFERRED 1 - FUNDING 2 TOTAL 16 PREFERRED PLAN - 20 5Funding - 7 3 -PREFERRED 5plan 24 -will 32 12focus - PREFERRED 15.5 on 4.5 TLAC-eligible - 5.5 2.5 SAN- 412 instruments* 19--14 25-17 2 -(*) 3
Slide 20: Capital ratios by subsidiary
Table of Contents TLAC REQUIREMENTS Poland Figures 17.60 are subject 15.84to 15.30 usualMexico AND regulatory FUNDING 16.44 approval 16.01 PLAN 14.88MPE 15.30approach 12.40 Parent follows 14.88 Santander bank 12.40 model 16.93 of autonomous Argentina 15.58 subsidiaries Chile Total in capital 12.05an
Slide 21: Content
Table of Contents Content ? Santander Business Model ? Capital ? TLAC requirements and Funding Plan ? Ratings ? Appendix
Slide 22: Ratings
Table of Contents RATINGS A- preferred LT senior BBB Banco unsecured Dated Santander T2debt BBB S.A. LT(expected) senior ratings unsecured Long Baa3Term BBB- debt Ratings BBB- SeniorBa1 Moody’s non-preferred Additional Standard (expected) T1 BB+ and Poor’s BB+ BBB+ 20 Fitch Adjusted Viability Baseli
Slide 23: Content
Table of Contents Content ? Santander Business Model ? Capital ? TLAC requirements and Funding Plan ? Ratings ? Appendix
Slide 24: Appendix: Senior ranking harmonisation
Table of Contents APPENDIX Directive creating instruments, and instruments legislation second apply ranking a (BRRD) new itwill ahead by in Senior liabilities line July be Spanish provision: of aswith Ranking 2017. the regards law the class final However, transposing framework Harmonisation Senior t
Slide 25: Thank you
Table of Contents Thank you Our purpose is to help people and businesses prosper Our culture is based on the belief that everything we do should be
Slide 26: Signature
Table of Contents SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Banco Santander, S.A. Date: January 11, 2017 By: /s/ José García Cantera Name: José Ga
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