Santander may shore up A&L with extra £1bn- Morningstar

clock

Santander could provide a further £1bn of its own capital to help shore up Alliance & Leicester's balance sheet, in addition to the £1.25bn of shares it is providing, according to Morningstar.

Morningstar fund analyst Erin Davis believe deleveraging A&L will also be a major priority for Santander. In an all-share deal worth £1.25bn, Alliance & Leicester agreed yesterday to become part of Santander’s Abbey Brand. However, Davis believes Santander will contribute a significant amount of additional capital as part of the deal. “The deal is not without risk to Santander, which will add £1bn of its capital to A&L's balance sheet in order to shore up its finances,” says Davis. With falling property prices and rising arrears and repossessions, Santander is also at risk from losses...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Minister reiterates no-change stance on APR and BPR proposals

Minister reiterates no-change stance on APR and BPR proposals

In response to MP’s ‘devastating consequences’ warning

Sahar Nazir
clock 29 October 2025 • 4 min read
Reeves: Investment 'cannot come at cost of economic responsibility'

Reeves: Investment 'cannot come at cost of economic responsibility'

Budget decisions ‘do not come for free’

Michael Nelson
clock 29 October 2025 • 2 min read
PA Asks: Is AI a bubble?

PA Asks: Is AI a bubble?

Plus, LLP NICs, EIS and ESG ratings

Professional Adviser
clock 29 October 2025 • 1 min read