Sept. 5 (Bloomberg) -- Banco Santander SA’s U.K. unit is “actively monitoring” risks associated with a member country leaving the euro or the currency breaking up, according to a report filed with regulators.
“Redenomination risk arises from the uncertainties arising from the exit of a member state from the euro or a total dissolution,” the unit of Spain’s biggest bank said in a filing to U.K. and U.S. regulators. “The group has been actively identifying and monitoring potential redenomination risks and, where possible, taking steps with the potential to mitigate them.”
Santander U.K. has 12.5 billion pounds ($19.9 billion) in assets and 47.4 billion pounds of liabilities arising in contracts denominated in euros and 35 billion pounds in associated hedges, the lender said. The U.K. unit led by Ana Patricia Botin, the daughter of group Chairman Emilio Botin, contributed 13 percent to Santander’s first-half profit.
“This disclosure was required of all major U.K. banks by our regulator,” said Andy Smith, a spokesman for Santander U.K. in a statement sent by e-mail. “Our exposure to peripheral euro zone remains less than 0.5 percent of the balance sheet.”
To contact the reporter on this story: Charles Penty in Madrid at firstname.lastname@example.org
To contact the editor responsible for this story: Frank Connelly at email@example.com