Banco Santander Fined Over €40M for Internal Process Deficiencies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: seekingalpha
- Regulatory Fine: Banco Santander has been fined over €40 million by Spain's SEPBLAC for deficiencies in internal processes at its Openbank unit, marking one of the largest penalties imposed on the Spanish lender, highlighting the regulator's stringent stance on compliance issues.
- Basis for Fine: The fine amount is calculated based on the company's size rather than the severity of the events, reflecting the regulator's strict standards in assessing compliance, which could negatively impact the bank's reputation and future operations.
- Compliance Review Focus: The regulatory review primarily concerns interpretive matters regarding procedural and control rules, particularly related to inactive customer accounts; although a Santander spokesperson emphasized that this is not linked to any money laundering case, it may still trigger a crisis of trust among customers.
- Market Reaction: The fine faced by Santander could affect its stock performance and raise investor concerns about its compliance capabilities, potentially impacting its competitive position and future business development in the market.
Analyst Views on SAN
Wall Street analysts forecast SAN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SAN is 7.40 USD with a low forecast of 4.90 USD and a high forecast of 9.91 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
0 Buy
1 Hold
1 Sell
Moderate Sell
Current: 13.050
Low
4.90
Averages
7.40
High
9.91
Current: 13.050
Low
4.90
Averages
7.40
High
9.91
About SAN
Banco Santander, S.A. is a Spain-based company engaged as a retail and commercial bank. The Banks segments include Continental Europe, the United Kingdom, Latin America and the United States. The Continental Europe segment covers all businesses in the Continental Europe. The United Kingdom segment includes the businesses developed by various units and branches in the country. The Latin America segment embraces all its financial activities conducted through its banks and subsidiaries in the region. The United States segment includes the Intermediate Holding Company (IHC) and its subsidiaries Santander Bank, Banco Santander Puerto Rico, Santander Consumer USA, Banco Santander International, Santander Investment Securities, and the Santander branch in New York. The Company's commercial model satisfies the needs of all types of customers: individuals with various income levels.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
