St Helier, Jersey 02 August 2010 Abbey International’s parent Santander steady even under adverse economic scenario, EU stress tests show

• Severe economic deterioration unlikely to stop profits or dividends
• Capital ratios solid, without State aid

The stress tests carried out by the Committee of European Banking Supervisors and the Bank of Spain show that Banco Santander, the ultimate owner of Abbey International in Jersey, would maintain its 2009 capital ratios even under the most severe scenario tested and still be able to pay out dividends to shareholders, albeit at reduced levels. Under the tests, Santander’s Tier 1 Capital Ratio was projected to remain at 10%, equalling the actual figure at the end of 2009. This ratio is amongst the highest in European and world banking and well above the 6% considered by regulators as a minimum capital requirement. Moreover, it has been achieved with no State intervention or support. In addition, in the hypothetical adverse scenario specified by regulators, Banco Santander would continue to generate profits, build capital and continue its payout policy of distributing about 50% of ordinary net income to shareholders, though earnings would decline under the most negative scenario. Strength and stability is a key part of the Abbey International business proposition to clients and it is one that is particularly important for high net worth clients in Jersey. Underpinning this is the Santander group business model which is built on more than 150 years experience in banking and a geographically diverse presence in ten key markets, where the group has a market share of over 10%.

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Media Contacts:
Guy Stephenson/Jennifer Duffy Nacelle Ltd 020 8333 9125  
Jane Matthews, Abbey International, Head of Client Experience 01534 828137