$SAN

Martin Lewis advises customers of Lloyds, Nationwide, Santander, and others to consider overpaying mortgages if rates are higher than after-tax savings rates, while keeping emergency funds. The Bank of England hints at potential rate hikes due to elevated energy prices and inflation expectations, with forecasts of 3.7% inflation by Q4 2023 and 4.2% by Q1 2024.

Seven UK banks, including Barclays and HSBC, completed interbank transactions using tokenised deposits on a platform by Quant. Tokenised deposits differ from stablecoins and CBDCs in deposit protections and control. The banks plan to establish a governing company and settle digital bonds in 2027. Stablecoins, like USDT and USDC, are issued by private companies and lack bank deposit protection.

Banco Santander repurchased shares worth 696.8 million euros (38.2% of its buyback program) from 17-23 September, amounting to 18.3% of its 2021 outstanding shares. The bank disclosed the transactions per market regulations. Details of each transaction are provided in an annex.

UK banks, including Lloyds (LYG), NatWest (NWG), Barclays (BCS), and HSBC (HSBC), completed the first interbank transfers of tokenized deposits on blockchain. The pilot, part of the GBTD project, demonstrated cross-institution transfers, a step toward common financial infrastructure. The Bank of England supports tokenized deposits over stablecoins to modernize existing money systems. The project aims to commercialize by 2027 with digital bonds.

Spanish Ibex-35 companies are set to pay nearly €10 billion in dividends this autumn, with Inditex, BBVA, Santander, and CaixaBank leading the payouts. Dividend growth in Spain surged 16.6% in Q2, driven by the banking sector, with BBVA alone accounting for half the increase. Inditex will pay €2.727 billion, while Santander and BBVA are expected to pay nearly €3.8 billion combined.

European equities rose 10.75% in H1 2026, driven by AI investment, energy earnings, and public spending. The MSCI Europe Index gained 11.80% in Q2, with tech and travel sectors leading. ASML, a major index constituent, surged 60%. However, small caps lagged, and EU GDP growth is forecast at just 1.1%.

Banco Santander completed a share buyback program from 10-16 September 2026, repurchasing 7.1 million shares for €558.9 million, or 30.6% of the program's maximum investment. This represents 18.2% of outstanding shares as of 2021, according to the bank.

Santander UK plc announced the redemption of its Series 1295 securities (ISIN: XS3121835014) on 28 September 2026, following the satisfaction of a trigger condition on 14 September 2026. The securities will be delisted from the London Stock Exchange after the redemption date, according to the company.

HSBC, Santander, and Nationwide increased mortgage rates, with Santander raising rates by up to 45bps, eliminating its sub-5% offers. Nationwide will hike rates by up to 30bps. Lenders cite increased borrowing costs as the reason for the hikes, affecting first-time buyers and remortgage rates.

Santander will pay £829 in compensation to customers as part of the FCA's redress scheme for mis-sold motor finance. The scheme covers deals from 2007 to 2024, with £7.5 billion in total redress expected. Payments prioritize those who have already filed complaints and are expected to be settled by the end of 2027.