Pablo de la Torre's questions to Banco Santander SA (SAN) leadership • Q1 2025
Question
Pablo de la Torre from RBC Capital Markets asked about the potential financial impact of abolishing the U.K.'s ring-fencing regime and requested an update on the U.K. structural hedge and NII outlook.
Answer
CFO José Antonio García Cantera stated that while a simpler regulatory framework would be beneficial for the U.K. economy, the direct financial impact on Santander from removing ring-fencing would be 'negligible.' He confirmed the U.K. structural hedge is nearly EUR 110 billion at a ~2.5% yield and that U.K. NII is expected to grow by low single digits for the year.