Patrick Lee's questions to Banco Santander SA (SAN) leadership • Q1 2025
Question
Patrick Lee asked about the U.K. business, seeking comment on the potential financial impact of abolishing the ring-fencing regime and requesting an update on the structural hedge and NII outlook for the year.
Answer
CFO José Antonio García Cantera stated that while a simpler regulatory framework would be beneficial for the economy, the direct financial impact of removing ring-fencing on Santander would be 'negligible.' He provided details on the U.K. structural hedge (nearly EUR 110 billion at a 2.47% yield) and reiterated guidance for low single-digit NII growth, in line with volume growth.