Operational Levers to Enhance Profitability
Santander has additional levers to neutralise regulatory
impacts
Expected regulatory impacts...
IFRS 16:
c.20 bps
IFRS 16 requires lease obligations to
be brought on balance sheet as a
liability at the present value of the
future lease payments.
to be offset with management actions
A
Minimum profitability
thresholds for all segments
Active management of
B
unprofitable portfolios
TRIM &
Others:
c.30 bps
Targeted Review of Internal Models
(TRIM) project to assess whether the
internal models currently used by banks
comply with regulatory requirements,
and whether their results are reliable
and comparable.
C
Higher % of portfolios in IRB
D
Securitisations & risk transfers
2020-21e:
low
Others: BRRD/CRD implementation,
CRR Application ...
E
Further alignment of senior
impacts
management remuneration
Santander
39
39View entire presentation