Banco Santander To Report EUR 600 Mln Impairment; Backs Earnings, Dividend Goals

(RTTNews) - Banco Santander S.A. (BNC.L, BSBR, SAN), a Spanish retail and commercial bank, Wednesday announced that his Board has agreed to allocate 600 million euros as a goodwill impairment. The company further maintained its goal to increase dividend per share in 2017 and 2018; and earnings per share in 2017 and 2018, the latter by double digits.

The impairment includes 500 million euros as a result of the review of the Group's investment in Santander Consumer USA Holdings Inc or SCUSA. The impairment for SCUSA is driven by a reduction in the company's earnings relative to prior years. The impairment will be recognised in the fourth quarter.

At a Board meeting today in Brazil, the Board approved changes to its composition, as well as adjustments to the goodwill.

Further, the Board has agreed to appoint Ramiro Mato as Independent Director. He will also join the Board´s executive committee, as well as the Audit and the Risk Supervision, Regulation and Compliance Committees.

Matías Rodríguez Inciarte and Isabel Tocino will leave the board of directors to take on new roles.