Santander UK Plc (SAN.L) noted the publication of the results of the stress test conducted on 8 major UK banks and building societies by the United Kingdom's Prudential Regulation Authority or PRA. As a consequence of the exercise, the PRA board does not require Santander UK to undertake any actions.
Santander UK's post-stress CRD IV end-point common equity tier 1 or 'CET 1' capital ratio, over a 3-year stress period to the end of 2016, was modelled to be 7.6% before management actions and 7.9% after allowed management actions. These results are significantly in excess of the CET 1 threshold of 4.5% established by the PRA. Santander UK reported a CET 1 capital ratio of 11.8% as at 30 June 2014.
Stephen Jones, Chief Financial Officer, said, "The PRA has examined an extreme but plausible stress scenario for the UK property market and has found, through their own analysis, that Santander UK has more than adequate capital to withstand such an occurrence. We are pleased that our prudential regulator is comfortable with our capital plan and requires no actions from us."
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