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Santander Bank announced a reduction in its prime rate from 7.75% to 7.50%, effective December 18, 2024. The bank, with $102 billion in assets, serves more than 1.8 million customers primarily across eight northeastern U.S. states through its workforce of over 5,100 employees. The Boston-headquartered bank operates as a subsidiary of Madrid-based Banco Santander (NYSE: SAN), which serves approximately 171 million customers globally across the U.S., Europe, and Latin America.
7,75% al 7,50%, a partire dal 18 dicembre 2024. La banca, con 102 miliardi di dollari in attivo, serve oltre 1,8 milioni di clienti principalmente in otto stati del nord-est degli Stati Uniti, attraverso una forza lavoro di oltre 5.100 dipendenti. La banca, con sede a Boston, opera come filiale di Banco Santander, con sede a Madrid (NYSE: SAN), che serve circa 171 milioni di clienti in tutto il mondo, negli Stati Uniti, in Europa e in America Latina.
El Banco Santander anunció una reducción de su tasa preferencial del 7.75% al 7.50%, a partir del 18 de diciembre de 2024. El banco, con 102 mil millones de dólares en activos, atiende a más de 1.8 millones de clientes principalmente en ocho estados del noreste de EE. UU. a través de su plantilla de más de 5,100 empleados. El banco, con sede en Boston, opera como una subsidiaria del Banco Santander con sede en Madrid (NYSE: SAN), que atiende aproximadamente a 171 millones de clientes a nivel mundial en EE. UU., Europa y América Latina.
산탄데르 은행은 기본 금리를 7.75%에서 7.50%으로 인하한다고 발표했으며, 이는 2024년 12월 18일부터 시행됩니다. 자산이 1,020억 달러인 이 은행은 주로 북동부 8개 주에서 180만 명 이상의 고객에게 서비스를 제공하며, 5,100명 이상의 직원이 근무하고 있습니다. 보스턴에 본사를 둔 이 은행은 마드리드에 본사를 둔 산탄데르 은행(NYSE: SAN)의 자회사로 운영되며, 전 세계적으로 1.71억 명의 고객에게 서비스를 제공합니다.
La Banque Santander a annoncé une réduction de son taux directeur de 7,75% à 7,50%, à compter du 18 décembre 2024. La banque, avec des actifs de 102 milliards de dollars, sert plus de 1,8 million de clients principalement dans huit États du nord-est des États-Unis, grâce à une équipe de plus de 5 100 employés. La banque, dont le siège est à Boston, fonctionne comme une filiale de Banco Santander basé à Madrid (NYSE: SAN), qui dessert environ 171 millions de clients dans le monde entier, aux États-Unis, en Europe et en Amérique latine.
Die Santander Bank gab eine Senkung ihres Hauptzinses von 7,75% auf 7,50% bekannt, gültig ab dem 18. Dezember 2024. Die Bank, die über 102 Milliarden Dollar an Vermögenswerten verfügt, bedient mehr als 1,8 Millionen Kunden, hauptsächlich in acht Bundesstaaten im Nordosten der USA, durch eine Belegschaft von über 5.100 Mitarbeitern. Die in Boston ansässige Bank agiert als Tochtergesellschaft der in Madrid ansässigen Banco Santander (NYSE: SAN), die weltweit rund 171 Millionen Kunden in den USA, Europa und Lateinamerika bedient.
Positive
- Prime rate reduction by 0.25% could increase lending activity
- Strong asset base of $102 billion
- Large customer base of 1.8 million in northeastern U.S.
Negative
- Lower prime rate may reduce interest income and profit margins
Insights
The 25 basis point reduction in Santander Bank’s prime rate to 7.50% mirrors the Federal Reserve’s recent rate cut, demonstrating the bank’s swift alignment with monetary policy shifts. This adjustment will directly impact the bank’s lending portfolio, particularly affecting variable-rate loans and credit products.
The rate reduction signals potential compression in net interest margins, as the spread between lending and deposit rates typically narrows in a declining rate environment. For Santander, with $102 billion in assets, this could translate to a moderate decrease in interest income. However, lower rates may stimulate loan demand, particularly in the commercial and mortgage sectors, potentially offsetting some margin pressure through increased lending volume.
Looking at the broader implications, this move positions Santander competitively in the New England and Mid-Atlantic markets, where they maintain significant retail and commercial banking operations. The timing aligns with market expectations of continued monetary easing through 2024, suggesting a strategic approach to maintaining market share while balancing profitability considerations.
The prime rate reduction reflects a pivotal shift in the banking sector’s competitive landscape. With 1.8 million customers across eight states, this adjustment will enhance Santander’s competitive position, particularly in key markets like Massachusetts and New York. The move could catalyze increased borrowing activity, especially beneficial for the bank’s commercial lending portfolio.
Historical patterns suggest that when prime rates decline, banks typically experience an initial period of margin compression followed by potential volume growth. For Santander, operating within a robust financial corridor of the Northeast, this rate adjustment could lead to increased market penetration, especially in the small and medium-sized enterprise segment where lending sensitivity to rate changes is particularly high.
BOSTON–(BUSINESS WIRE)– Santander Bank, N.A. announced today it has lowered its prime rate from 7.75% to 7.50% effective December 18, 2024.
Santander Bank, N.A. is one of the country’s leading retail and commercial banks, with $102 billion in assets. With its corporate offices in Boston, the Bank’s more than 5,100 employees and more than 1.8 million customers are principally located in Massachusetts, New Hampshire, Connecticut, Rhode Island, New York, New Jersey, Pennsylvania and Delaware. The Bank is a wholly-owned subsidiary of Madrid-based Banco Santander, S.A. (NYSE: SAN), recognized as one of the world’s most admired companies by Fortune Magazine in 2024, with approximately 171 million customers in the U.S., Europe, and Latin America. It is overseen by Santander Holdings USA, Inc., Banco Santander’s intermediate holding company in the U.S. For more information on Santander Bank, please visit www.santanderbank.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241218277218/en/
MEDIA:
Caroline Connolly
caroline.connolly@santander.us
Source: Santander Bank, N.A.
FAQ
What is Santander Bank’s new prime rate as of December 18, 2024?
Santander Bank’s new prime rate is 7.50%, reduced from 7.75%, effective December 18, 2024.
How much did Santander Bank (SAN) lower its prime rate in December 2024?
Santander Bank lowered its prime rate by 25 basis points (0.25%), from 7.75% to 7.50%.
What is Santander Bank’s total asset value in 2024?
Santander Bank has $102 billion in assets.
How many customers does Santander Bank serve in the U.S.?
Santander Bank serves more than 1.8 million customers, primarily in Massachusetts, New Hampshire, Connecticut, Rhode Island, New York, New Jersey, Pennsylvania and Delaware.
What is the impact of SAN’s prime rate reduction on borrowers?
The reduction in prime rate to 7.50% will lower borrowing costs for customers with loans tied to the prime rate.
