Banco Santander Facing Capital Headwinds  

Banco Santander’s U.K. business fell as a slump raising questions about its capital levels— even putting in the shade the jump it recorded in its first-quarter profits. Could the exit of Peter Jackson, former Banco CEO for U.K to Worldpay complaints be the cause of all this raging storms, or are there other reasons?

Earnings dropped by 23% at the U.K. business as revenue from lending fell while expenses increased, pushing the shares down to their lowest in six months. These miseries further fueled the headwinds from currencies in stronger Hispanic markets whose future is now clouded by the oncoming July elections.

According to some market analysts, the U.K. situation may be the reason Santander’s won’t achieve their 2018 dream—a double-digit EPS growth. Expenditure on digital projects will push up operation expenses.

The U.K. slump put in the shade the 26% profit-increase recorded in Spain, …