Sale of Polish Business Strengthens Santander's Capital Position -- Market Talk

Dow Jones
2025/05/05

1130 GMT - The sale of most of Santander's Polish businesses to Erste Group strengthens the Spanish bank's capital position, Renta 4 Banco analyst Nuria Alvarez says in a note. The transaction boosts Santander's CET1 ratio by around 1%, giving it a temporary buffer of 14%, above its target of 12% to 13%, Alvarez says. The 3.2 billion euros the bank plans to return through a share buyback following the transaction may exceed the company's target of 10 billion euros in share buybacks in 2025 and 2026, the analyst adds. Moreover, the deal will boost Santander earnings per share starting in 2027 and give it greater flexibility to invest in other markets. (maitane.sardon@wsj.com)

 

(END) Dow Jones Newswires

May 05, 2025 07:30 ET (11:30 GMT)

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