Santander UK has moved to reassure its customers with a major announcement, stating it has successfully passed the Bank of England's latest stringent health check and is robust enough to weather a "severe shock" to the financial system.
Santander Clears Key Bank of England Hurdle
The high street bank, which operates branches across the UK including in Birmingham, was one of seven major lenders subjected to the 2025 Bank Capital Stress Test. This annual exercise simulates extreme economic downturns to assess the resilience of the UK's banking sector.
Santander confirmed it passed the test on both risk-based capital and leverage-based capital measures. The bank emphasised that it "significantly exceeded" the minimum regulatory capital requirements throughout the five-year hypothetical stress scenario.
Capital Ratios Remain Strong Under Pressure
The detailed results show the bank's key capital buffers, while depleted in the test's severe scenario, remained well above the required thresholds.
Its Common Equity Tier 1 (CET1) ratio – a core measure of financial strength – was seen falling from 14.8% in December 2024 to a low point of 10.3% after accounting for management actions. This lowest point was still significantly above the 6.9% minimum requirement set by the test.
Similarly, its Leverage ratio decreased from 4.9% to 3.9% at the stress scenario's nadir, comfortably above the 3.25% minimum.
Bank Pledges Continued Support for Customers
Angel Santodomingo, Chief Financial Officer at Santander, stated: "The results of the stress testing exercise highlight once again Santander’s strong capital position and prudent balance sheet management, providing further confidence that the bank can withstand a severe shock."
He added a direct message to customers: "Our customers can be confident that we are well positioned to continue lending to help people and businesses prosper."
As the bank's capital levels stayed comfortably above all requirements, no additional capital actions are needed. Santander confirmed it continues to lend to both households and businesses to support economic growth.
The announcement comes after a period of speculation earlier in the year regarding Santander's future in the UK market. This stress test result serves as a public demonstration of its financial durability, alongside rivals like HSBC UK, NatWest, Nationwide, Barclays, and Lloyds.
