Santander is significantly undercapitalised compared with its European peers and some way from meeting the tougher standards set out by the new Basel

Santander’s plans to list on the London Stock Exchange next year may not herald a significant change for the UK business, which has already transformed itself into a household name in the British banking market.
However, for the highly acquisitive Spanish bank, the move not only generates much-needed capital after a flurry of purchases in recent months, but puts further weight behind its commitment to overseas markets.
As Santander’s home territory has suffered in the wake of a severe and prolonged property crash, the bank has increasingly turned its focus away from Spain. In recent months it has bought a portfolio of 318 UK branches from Royal Bank of Scotland, a stake in Polish bank Zachodni, $4bn (£2.5bn) of US car loans and a branch network in Germany.Analysts say that rapid expansion has left its capital levels in need of replenishment. Andrew Lim at Matrix believes Santander is significantly undercapitalised compared with its European peers and some way from meeting the tougher standards set out by the new Basel III regime

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