PHILADELPHIA – Banco Santander S.A., the Spanish banking giant that bought Sovereign Bancorp last year, is considering spinning off the U.S. bank in an initial public offering, according to a published report.
Santander successfully floated its Brazilian subsidiary last year and is now looking at doing the same with Sovereign in 2011 or 2012, the Financial Times reported Monday, citing “people familiar with [Santander’s] intentions.”
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The Spanish megabank is also considering an initial public offering of its U.K. subsidiaries this year, the FT said. However, new regulations by the Basel committee, which regulates banks internationally, may make an IPO less attractive for Santander.
Sovereign Bank was the fourth-largest bank in Rhode Island by deposits as of June 2009, with $2 billion, or 7 percent, of the statewide total, according to the Federal Deposit Insurance Corporation.
The bank had 32 branches in Rhode Island last June, third-most in the state, and employs 675 people here, according to Providence Business News data.
Sovereign lost 25 million euros ($34.6 million) last year but broke even in the final quarter, according to Santander, which completed its acquisition of the bank a year ago. “Sovereign brought in no profit in 2009, but will in 2010,” Alfredo Sáenz, Santander’s chief executive and vice chairman, said last week.
Additional information is available at sovereignbank.com.
