Santander Bank decided restructuring retail and commercial banking and consumer finance segments splitting your entire work in half five global areas, as reported in a statement this Monday. Until now, Santander has operated its business with a dual division, local and global. With restructuring commercial banking gaining importance. So far, its main segments are Europe, North America, South America and Digital Consumer Bank, while its secondary segments are commercial banking, investment banking, asset management and payments. The bank believes that the “set strategic objectives” will be achieved through the creation of a global business unit and “to increase the number of customers by 40 million by 2025”Increasing return on tangible equity (RoTE) to 15-17% and achieving double-digit average annual growth in total tangible book value (TNAV) per share plus dividends per share over the cycle.
From January 2024, Banco Santander’s activities will be structured in five global areas: Retail and Commercial, Digital Consumer Bank, Payments, Corporate and Investment Banking and Wealth Management and Insurance. “We believe that this will be positive for our customers and will also allow us to move faster and achieve all the goals we set for ourselves at this year’s Investor Day,” said the Banco Santander chairman. Ana Botín.
The financial institution plans for the CET1 capital ratio to exceed 12% between 2023 and 2025, and the payout to shareholders (the portion of profits that will return to shareholders). reach 50% of profitIncluding share buybacks and dividends, the efficiency ratio is expected to reach 42% by 2025.
main engine
The idea here, as Santander states, is that the group will continue to offer detailed information about countries and regions, but do so as secondary segments. In any case, itCommercial banking is the main driver of bank profits comes to the fore with the restructuring. The aim is to encourage the capture of private savings in Spain and around the world, by emulating the latest successes in the UK. Traditional banking activity generated revenues of 3 billion 269 million in the first half, down 18.6%; revenues increased by 6.3% and expenses increased by 7%. With this restructuring, it is anticipated that global profitability levels will increase by gathering the unique characteristics of each market into a single account. After commercial banking, investment banking contributed 1 billion 876 million, 22% more, while private banking, insurance and asset management made a profit of 819 million, with a growth of 70%.
Two of the five new segments are already global businesses: the investment banking area led by José Linares and the asset management branch led by Víctor Matarranz. Retail and Commercial, one of the new segments, will integrate and lead all retail and commercial banking businesses of the group companies. Daniel BarriusoThe Digital Consumer Bank will bring together all consumer finance businesses in the world and will be led by José Luis de Mora.
Barriuso heads commercial banking
Barriuso is Santander’s senior vice president and until now the group’s Transformation director. He previously served as Head of Global Cybersecurity (CISO) and Bank Fraud Prevention for almost seven years. He has thirty years of experience in the banking, energy and technology sectors. Before joining Santander, he held various executive positions at BP, Credit Suisse and ABN Amro. De Mora was senior vice president and until now CEO of Santander Consumer Finance. He will now become global head of the Digital Consumer Bank and will also be responsible for the group’s Corporate Development and Financial Planning. He joined the bank in 2003 and participated in the bank’s major financial institution acquisitions in Europe and America.
Before joining the group, De Mora worked at Kleinwort Benson and Merrill Lynch in London. Payments, for its part, remains a global business divided into two divisions: PagoNxt, led by Javier San Félix, and Global Cards, led by Matías Sánchez. In this new structure, global managers will define the common operation and business model based on global platforms, and country managers will lead the business management.
Group It will adapt the way of reporting financial results to the new model as of January 2024That’s when it will be fully implemented, given that five global businesses will become the main segments of the group. To facilitate annual comparisons and analysis, the bank will publish information tailored to the new segments before the announcement of its 2023 results, scheduled for January 31, 2024. The group will continue to provide detailed information about countries and regions. will do as secondary segments.
Source: Informacion
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