Santander cools down the possibility of mergers between Spanish banks just a day after Bankia open the door to the consolidation of the sector. “We are not in that, but in transforming businesses. Our priority is to lead the regions in which we are located, “said the CEO of the entity, José Antonio Álvarez, at the press conference after the presentation of the bank’s results, which reflect losses of almost 10.8 billion due to a accounting adjustment of 12.6 billion euros.
Álvarez has highlighted that this adjustment, which is undertaken every year, simply reflects the evolution of the valuation of the bank’s assets and does not affect either the capital or the generation of cash of the entity. Beyond this write-down, Santander’s operating profit has grown by 2% and revenues “have performed well”, according to Álvarez. “The activity has been intense and we have grown in deposits. It was an atypical quarter but we have a good evolution, “explained the manager.
The CEO of the Santander It has also highlighted that the bank’s capital ratio has been strengthened, reaching 11.84%, in the high part of the forecast made a few months ago. “We have led the response to the crisis,” said Álvarez, who recalled the growth in loans granted to SMEs and large companies.
Despite this, the losses of 10,798 recorded in the first half due to the bank’s accounting adjustments represent an insurmountable slab for the annual result. Alvarez He has recognized that in accounting terms there will be losses in 2020. “What happens in recurring terms is that we have generated 2,000 million euros in the first part and I expect more than 2,000 million euros in the second part,” he pointed out.
The CEO of the Bank It has also referred to the ECB’s recommendations that entities do not pay dividends. A council that, as ABC announced, the supervisor has extended until 2021. From Santander they advocate for greater discrimination between entities when making these recommendations, depending on the situation and the capacity to generate results that each one has.
“I hope there will be more discrimination depending on the situation of the entities and the ability to generate results; This cannot be coffee for all ”, defended the CEO of Santander, an entity that has earned about 400 million euros to pay cash dividends against the r2020 results when regulators allow it.