Santander Holdings USA, Inc. (“SHUSA” or the “Company”) commented on the results of the Federal Reserve’s 2022 Supervisory Stress Test Results.
Based on SHUSA’s 2022 Supervisory Stress Test results, the Company’s minimum capital ratios under the Federal Reserve Board (“FRB”) severely adverse scenario ranked in the top quartile among participating banks. Additionally, the Company will be subject to the FRB’s Stressed Capital Buffer, which is expected to be finalized for all firms during August 2022. As of March 31, 2022, SHUSA’s CET1 ratio was 18.5%, well above its current regulatory CET1 requirement.
SHUSA believes the stress test results demonstrate its resiliency and the strength of its business model and capital position. The results indicate that SHUSA can remain well capitalized during times of severe market stress. The Company’s robust capital planning process is designed to ensure the efficient use of capital while maintaining a long-term approach to capital allocation and distribution.
The timing and amount of any capital actions will depend on a variety of factors, including the business plans and financial performance of the Company and its subsidiaries, general market, and economic conditions, and are subject to any applicable regulatory requirements and approval by the Company’s board of directors.