Business Priorities and Profitability Strategy in Latin America slide image

Business Priorities and Profitability Strategy in Latin America

Strong credit fundamentals Group Liquidity Coverage Ratio (LCR) 158% Net Stable Funding Ratio (NSFR) 114% Funding Plan 2018 2019 EUR Bn issued issuance plan² Covered bonds 1.6 3-5 Senior preferred 0.5 3-5 Senior non-preferred 6.1 -- Hybrids 2.8 1.5 TOTAL 10.9 7.5-11.5 o/w Subordinated4 8.9 1.5 Santander S.A. meets current MREL III requirement¹ and Group capital הוויי requirements (AT1: >1.5%; T2: 2%)... ...so going forward we will focus more on preferred instruments and covering debt maturities. We also have the capacity to fully repay TLTROII Santander Group's CET1 levels are well above the minimum loss absorption trigger of 5.125%: >€37Bn (ADIs of €56.5Bn) FX hedging policy in place to preserve CET1 ratio. Positive sensitivity to higher interest rates Santander Santander's understanding of current policy under the existing recovery and resolution rules Issuance plan subject to, amongst other considerations, market conditions and regulatory requirements Data calculated using the IFRS9 transitional arrangements as of December 2018 (4) Including senior non-preferred 40
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