Banco Santander issues warning on impact of Brexit uncertainty
Spanish lender Banco Santander has warned that the uncertainty surrounding the UK's exit from the EU is likely to have an adverse impact on the bank's operations.
In a filing to the US Securities and Exchange Commission, the bank said that the lack of clarity on the Brexit deal for financial services and the status of European citizens in the UK would have a "significant" effect on its operating results and ability to hire and retain staff.
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"Exposure to UK political developments, including the ongoing negotiations between the UK and the European Union could have a material adverse affect on us," the lender said.
"Operationally, our subsidiaries in the UK and other financial institutions will no longer be able to rely on the European passporting framework for financial services, and it is unclear what alternative regime may be in place following the UK’s departure from the EU," the bank added.
"This uncertainty, and any actions taken as a result of this uncertainty, as well as new or amended rules, may have a significant impact on our operating results, financial condition and prospects.
"In addition, the lack of clarity of the impact of the UK EU referendum on foreign nationals’ long-term residency permissions in the UK may make it challenging for our subsidiaries in the UK to retain and recruit adequate staff, which may adversely impact our business."
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It comes on the same day that Moody's said banks were well-prepared for any Brexit jitters after March 2019.
A recent Reuters poll found that the financial services sector appears more relaxed about leaving the EU, only expecting to send relocate half the number of jobs abroad than it was this time last year.