2023-04-26 18:14:05
During the presentation of results for the first quarter of this year, Héctor Grisi, the CEO of Banco Santander, indicated that the entity will adapt its remuneration to deposits based on how the market evolves.
“Banco Santander does not expect a ‘deposit war’ to take place in Spain,” the CEO of the entity chaired by Ana Botin.
Grisi has affirmed that even after the crisis generated by the collapse of several medium-sized banks in the United States and Credit Suisse in Europe, Banco Santander sees “stability in the deposit base.”
In Grisi’s opinion, Banco Santander is going to be “very dynamic” to the market’s reaction, which implies that it is going to adapt its position based on what the rest of the entities do.
In the presentation of results, Santander Bank has indicated that 80% of its retail deposit base is covered by deposit guarantee systems, so it rules out risks such as those assumed by SVB. According to Grisi, the problems of this entity and Credit Suisse are “very isolated and very particular cases.”
Asked about possible repercussions of the new Housing Law or the Government’s plan regarding Sareb for Banco Santander, the CEO does not observe “any impact” for the entity in both cases.
The publication of results for the first quarter of 2023 has been accompanied by a drop of up to 5% in the entity’s stock on the stock market. In this regard, Grisi explained that the bank is meeting the objectives set out in its Investor Day last February.
Regarding the situation in Brazil, where the entity’s profit has fallen by 25.2% compared to 2022, standing at 469 million euros, the CEO of Banco Santander considers that the country is in a situation “that there is to understand”, given that interest rates stand at 13.75%, the highest percentage among the most important countries in the world, discounting inflation.
Grisi believes that Banco Santander is handling the situation “quite well” in the South American country, where despite everything, it continues to grow.
Regarding Spain, the CEO has stated that it is a “seasonal issue”, with a decrease in profits in the first quarter of 2023 compared to the fourth of 2022, in which they registered “very significant growth” by corporate clients due to the closure of the year. In this segment, deposit outflows reached 21,000 million in January, to recover in the following two months.
Santander Bank It has indicated that it has received so far some 1,400 applications included in the Code of Good Practices on aid for mortgagees in trouble. In this regard, José García Cantera, the financial director of the entity, has indicated that they are still being studied.
Héctor Grisi recalled that mortgages in Spain are reviewed once a year, so the impact of the Code cannot yet be assessed. According to calculations by Banco Santander, around 60 or 70% of its mortgage portfolio has already appreciated due to the increase in interest rates.
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