1. SHUSA's updated SCB requirement rises to 3.4% CET1 capital effective October 2025. 2. SHUSA holds $5.0 billion excess CET1 above the new capital requirement. 3. SHUSA conducts its own stress tests with strong capital maintenance under adverse scenarios. 4. Banco Santander, SAN's parent, has 175 million customers globally as of 2025.
The strong CET1 position indicates financial stability, which typically supports stock prices. Historical examples suggest similar announcements led to positive market reactions for well-capitalized firms.
The news reinforces SHUSA's financial strength and risk management strategies, crucial for SAN investors. Such metrics are essential for gauging future performance.
Effective changes in capital requirements often influence market sentiment quickly. Immediate investor confidence can arise from improved stability profiles.
BOSTON--(BUSINESS WIRE)--The Board of Governors of the Federal Reserve System (the “Federal Reserve”) informed Santander Holdings USA, Inc. (“SHUSA”) on June 27, 2025, of SHUSA’s updated stress capital buffer (“SCB”) requirement, which becomes effective on October 1, 2025. SHUSA’s updated SCB will be 3.4% of its common equity Tier 1 capital (“CET1”), resulting in an overall CET1 capital requirement of 7.9%.
SHUSA’s strong capitalization supports our planned capital actions, and the updated SCB is consistent with our long-term capital efficiency objectives. As of March 31, 2025, SHUSA maintained $5.0 billion of excess CET1 capital over the updated 7.9% capital requirement.
As a Category IV firm under the Federal Reserve’s tailoring rule, SHUSA was not subject to the Federal Reserve’s 2025 supervisory stress test and SHUSA’s results were not publicly released.
SHUSA completes its own stress tests utilizing our internally developed bank holding company stress scenario as well as the scenarios provided by the Federal Reserve. In our 2025 stress testing exercise, SHUSA maintains a strong capital position under all forecasted scenarios. SHUSA’s internal recessionary stress scenario includes lower interest rates, high unemployment and large shocks to used car and commercial real estate prices.
Santander Holdings USA, Inc. (SHUSA) is a wholly-owned subsidiary of Madrid-based Banco Santander, S.A. (NYSE: SAN) (Santander), recognized as one of the world’s most admired companies by Fortune Magazine in 2025, with approximately 175 million customers in the U.S., Europe and Latin America. As the intermediate holding company for Santander’s U.S. businesses, SHUSA is the parent company of financial companies with more than 11,300 employees, 4.5 million customers, and assets of $165 billion in the fiscal year ended 2024. These include Santander Bank, N.A., Santander Consumer USA Holdings Inc., Banco Santander International, Santander Securities LLC, Santander US Capital Markets LLC and several other subsidiaries. Santander US is recognized as a top 10 auto lender as well as a top 10 multifamily bank lender and servicer, and has a growing wealth management business. For more information about Santander US, please visit www.santanderus.com.