Wednesday, January 25, 2017

Santander against the nationalization of the New Bank – the Observer

The Santander Totta managed to increase profits in more than 35% in the past year, approaching 400 million euros. The result, which was presented this Wednesday in a press conference, was the growth of 31% in the financial margin in the 16% increase in revenue from commissions and an increase in the trade margin (28%). In answer to the questions of journalists, president-executive Vieira Monteiro showed "clearly against" the nationalization of the New Bank.

"our position is clear. We are against nationalization," said Vieira Monteiro, during the presentation of the results of Santander Totta relating to 2016, the year in which recorded profits of 395,5 million euros. The president of the bank, that belongs to the Spanish group Santander, has predicted that the nationalization of the New Bank can cause some distortion in competition."

I do Not understand very well [the existence of] two public banks and that will do", he said.

in addition, he recalled that "the costs [of an eventual nationalization] are not yet determined" and that "experience has shown that they are very, very high."

he Asked about whether it is preferable to a sale involving loss to the Resolution Fund Banking or a nationalization, Vieira Monteiro reiterated to be against the second and stressed that "it is very premature" to put this question. "I do not know the conditions of the negotiations, I do not know of the proposed [purchase] and it is early to say that there may be harm [to the Resolution Fund]. Perhaps there may not be losses to the Resolution Fund," he said.

About a possible interest of the financial institution that presides in the New Bank, if this is not being able to sell this second sale process, the Vieira Monteiro came back today to say that "the Bank Santander said from one point that he was not interested".

The position of Vieira Monteiro was manifested on the day that the bank showed an increase of around 35% in the profits pertaining to 2016. It was the year of the merger of Banif, bank whose operations the institution led by António Vieira Monteiro bought at the end of 2015, after the resolution. But Vieira Monteiro refusal that the purchase of the Banif has contributed significantly to the profits of 395,5 million recorded in the year. The Banif yielded a million per month, guaranteed Vieira Monteiro, simplifying to say that the operations purchased not earned more than 12 million euros.

that has contributed, yes, for profit, according to the bank, has the financial edge — that is, the difference between the interest that the bank receives for the credits it provides and the interest that is paid for by their financing (including that paid on deposits). The financial margin rose 31% to 731,7 million.

The evolution of income and operating costs led to an efficiency ratio of 43.7%, compared with 42,3% recorded in the same period, the period in which the results of financial operations were much higher and that the Bank had not reckoned with the assets and liabilities acquired from the former Banif, whose efficiency ratio recurring was significantly worse than that of the Santander Totta.


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