Print this page

Santander: No Q3 Dividend

By Staff Writer July 30, 2020

Santander Consumer USA Holdings Inc. announced  a loss of $97 million net income for the second quarter ended June 30, 2020, or a loss of $0.30 per diluted common share. The quarter included $400 million of incremental allowance for credit loss primarily driven by macroeconomic factors and COVID-19.

As previously announced, based on the interim Federal Reserve Board policy and SHUSA’s expected average trailing four quarters of net income, SC is prohibited from paying a dividend in the third quarter of 2020. Although SC’s standalone expected income is sufficient to declare and a pay a dividend in the third quarter, SC is consolidated into SHUSA’s capital plan and therefore is subject to the FRB’s interim policy that utilizes SHUSA’s average trailing income to determine the cap on common stock dividends. SHUSA has requested certain exceptions to the interim policy, however the timing and outcome of the request is uncertain. SC does not currently expect to declare or pay a dividend in the third quarter of 2020 pending approval of SHUSA’s exception request.

“The duration of the pandemic has created significant macroeconomic uncertainty, and the speed of the economic recovery will dictate our performance over the next several months,” said Mahesh Aditya, SC President and CEO.

“While certain indicators are trending positive, we anticipate a delayed reversion to normal. Our results this quarter demonstrate the resiliency of our portfolio, the effectiveness of the hardship programs we instituted and the strength of our business model.”

Rate this item
(0 votes)
Last modified on Thursday, 30 July 2020 15:22

Related items