FSA action on BNC25 Feb 2013 17:13
Anyone care to illuminate what the implication is for UK shareholders of this:-
Mon, 25th Feb 2013 10:45
The Financial Services Authority (FSA) has lifted the restriction on Santander UK's dividends, allowing them to be channelled back to parent company Banco Santander.
Analysts at Bankinter explained that the original decision was based on concerns that the British subsidiary would be de-capitalised in order to strengthen capital at the Spanish bank and make up for higher provisions in the domestic market as a result of the housing crisis.
These analysts argue however that "the lower perception of risk towards Spain, the European Central Bank's intervention, and positive 'stress test' results were reason enough for the regulator to lift that restriction."
Santander UK repatriated £450m in dividends in late 2012 and expects to pay out another £500m this year.
Bankinter said that this will have a positive impact on the stock. It has a 'buy' rating for Santander.
Thanks....I just keep putting the Divis into more shares.