Declining Profits in Germany Linked to Fee Capping Regulation: What’s Next for Santander?

For the fact that she is now on the road with three retail brands alone in this country (besides the Santander Consumer Bank also with Openbank and Suresse Direct), the Spanish one says Santander remarkably tight-lipped in their quarterly reports on business in Germany. However, the recently published H1 report shows that the operating profit generated from Flensburg to Garmisch in the first half of the year has practically slumped to just 84 million euros (compared to the previous year, this corresponds to a decrease of 54%!!!) .

Even more interesting than the result crash as such is of course the reason given. So is in that Santander-Report mentioned several times a “fee capping regulation” in relation to business in Germany. Although the term is not explained in detail anywhere, from our point of view it can actually only mean the commission cap in the business with residual debt insurance.

Now wants

• first, the Santander Bank will not comment on any of this when asked;
• Secondly: The fact that the “Fee Capping Regulation” really means the RSV is, as I said, only a guess on our part
• And thirdly: How much of the slump in profits is due to the “Fee Capping Regulation” and whether this is a completely permanent effect must remain open for the time being.

And yet: You can be more than excited about the next figures from the relevant consumer financiers!

What will become of the lucrative business with residual debt insurance?