Santander to Book EUR1.5 Billion Impairment Related to U.K. Business

   By Pietro Lombardi

Banco Santander SA (SAN.MC) will book a roughly 1.5 billion euros ($1.65 billion) impairment following a review of the goodwill ascribed to its U.K. subsidiary.

The impairment is mostly due to a challenging regulatory environment, with the bank mentioning the negative impact of "ring-fencing" rules, under which U.K. lenders must separate retail banking from riskier investment-banking operations. Growing competition and the impact on the British economy of uncertainty related to Brexit also played a role, the bank said late Tuesday.

The impairment will be reported in the banking giant's third-quarter results.

"While ring-fencing reforms and Brexit have impacted profitability in the UK, it remains a critically important market, in which the group is investing significantly to service our customers and to continue to compete," Executive Chairman Ana Botin said.

The lender also said that it would pay the first of two annual dividend payments starting in November. Shareholder will get EUR0.10 a share in cash.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

(END) Dow Jones Newswires

September 25, 2019 02:12 ET (06:12 GMT)

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