TIDMBNC
RNS Number : 8336M
Banco Santander S.A.
19 September 2023
Santander aligns retail & commercial and consumer operating
model to its strategy
-- Going forward all the bank's activities across all markets
will be consolidated under five global areas: Payments, Corporate
& Investment Banking, and Wealth Management & Insurance,
and the two new global businesses, Retail & Commercial, and
Digital Consumer Bank.
-- This will allow the bank to improve its customer service and
simplify its business further, while helping achieve the strategic
goals outlined at its Investor Day in February, which remain
unchanged.
-- These five areas will become the bank's primary reporting segments from January 2024.
Madrid, 18 September 2023 - PRESS RELEASE
Banco Santander is consolidating its retail & commercial and
consumer activities across all markets under two new global
businesses: Retail & Commercial and Digital Consumer Bank. The
changes align these businesses with Santander's current, global
model in Corporate & Investment Banking, Wealth Management
& Insurance and Payments, helping the bank achieve the
strategic goals outlined at its Investor Day in February,
including: adding 40 million customers by 2025, increasing return
on tangible equity to 15-17%, and achieving double-digit average
annual growth in tangible net asset value per share plus dividend
per share through the cycle.
Following the changes, all of the bank's activities will be
aligned under five global business areas [1] :
- Retail & Commercial : a new business area which combines
all the bank's retail and business banking globally, to be led by
Daniel Barriuso.
- Digital Consumer Bank : all consumer finance activities
worldwide, to be led by José Luis de Mora.
- Payments : PagoNxt (led by Javier San Félix) and Global Cards
(led by Matías Sánchez).
- Corporate & Investment Banking : already a global business, led by José M. Linares.
- Wealth Management & Insurance : already a global business, led by Víctor Matarranz.
Santander's executive chair, Ana Botín , said: "Today we are
announcing a crucial step in aligning our operating model in retail
& commercial and consumer banking to our strategy. We know from
our progress since we first defined our strategy in 2015 that
leveraging our unique combination of global scale and local
leadership allows us to serve customers better, while delivering
profitable growth. We are confident this is the right thing for our
customers and will allow us to progress faster, delivering on all
targets set out at Investor Day this year, including double digit
average annual growth in tangible net asset value plus dividend per
share through the cycle."
In this new model, global heads will define the common business
and operating model, which will be based on global platforms;
country heads continue to be responsible for managing the business,
and regional heads will drive the implementation of the model and
convergence across the markets.
The group plans to align the way it reports its financial
results to this new model from January 2024, as it becomes
implemented, with the five global businesses becoming the new
primary segments for the group. To facilitate year-on-year
comparisons and analysis, the bank will publish information adapted
to the new segments ahead of 2023 full-year results announcement,
which will take place on 31 January 2024. The group will continue
to report all country and region-specific data, although they will
become secondary segments.
The group's financial targets outlined in February remain
unchanged, including achieving a return on tangible equity (RoTE)
of 15-17% in 2023-2025 and an efficiency ratio of c.42% by 2025;
maintaining a fully-loaded CET1 above 12%; delivering double-digit
average annual growth in tangible net asset value (TNAV) per share
plus dividend per share through the cycle. The bank remains on
track to meet its 2023 targets, including double-digit revenue
growth; RoTE above 15%; cost-to-income ratio of 44-45%;
fully-loaded CET1 above 12%, and cost of risk below 1.2%.
Bios of global heads(1)
Daniel Barriuso (Retail & Commercial) is s enior e xecutive
v ice p resident , g lobal h ead of Retail & Commercial Banking
and g roup c hief t ransformation o fficer at Banco Santander.
Before that, he was c hief i nformation s ecurity o fficer (CISO)
and h ead of Cyber & Banking Fraud Prevention for nearly seven
years at the bank. Daniel has over 29 years' experience across b
anking, e nergy and t ech industries. Prior to joining Santander ,
he held various executive positions at BP, Credit Suisse and ABN
AMRO .
José Luis de Mora (Digital Consumer Bank) is senior executive
vice president, global head of Digital Consumer Bank and group head
of Corporate Development and Financial Planning at Banco Santander.
He joined the bank in 2003 and has taken part in the group's major
acquisitions of financial institutions in Europe and the Americas.
Before joining the group, Mr De Mora worked in London at Kleinwort
Benson and Merrill Lynch.
Javier San Félix (Payments - PagoNxt) is senior executive vice
president at Banco Santander and chief executive officer at
PagoNxt. Prior to that, Mr San Félix had been head of Global
Payment Services, deputy CEO for Santander UK and responsible for
the group's Retail and Commercial Banking division. Previously, he
was CEO of Banesto after joining Santander Consumer Finance in
2004. Before Santander, Javier was a senior partner of McKinsey
& Company.
Matías Sánchez (Payments - Global Cards) is senior executive
vice president and head of Global Cards at Banco Santander since
2022. Prior to that, Mr Sánchez was head of Retail Products Europe
and Spain, and spent over eight years in Chile as head of Retail
and Digital Banking after a first period as head of Middle Market.
Before, he had worked in Banesto for 15 years.
José M. Linares (Corporate & Investment Banking) is senior
executive vice president of Banco Santander and global head of
Santander Corporate & Investment Banking (Santander CIB) since
2017. Prior to joining Santander, Mr Linares spent more than 17
years at J.P. Morgan in a number of senior roles in New York, Hong
Kong and London. His final position there, starting in 2011, was
head of Global Corporate Banking in Europe, the Middle East and
Africa (EMEA).
Víctor Matarranz (Wealth Management & Insurance) is senior
executive vice president and global head of Wealth Management &
Insurance at Banco Santander since 2017, leading Santander Private
Banking, Santander Asset Management and Santander Insurance
globally. Between 2014 and 2017, he was the head of Group Strategy
and of the Executive Chairman's Office and, prior to that, he was
the director of Strategy and chief of staff to the CEO in Santander
UK. Before joining Santander in early 2012, Mr Matarranz was a
partner at McKinsey & Company.
Banco Santander (SAN SM, STD US, BNC LN) is a leading commercial
bank, founded in 1857 and headquartered in Spain. It has a
meaningful presence in 10 core markets in the Europe, North America
and South America regions, and is one of the largest banks in the
world by market capitalization. Santander aims to be the best open
financial services platform providing services to individuals,
SMEs, corporates, financial institutions and governments. The
bank's purpose is to help people and businesses prosper in a
simple, personal and fair way. Santander is building a more
responsible bank and has made a number of commitments to support
this objective, including raising EUR220 billion in green financing
between 2019 and 2030. In the first half of 2023, Banco Santander
had EUR1.25 trillion in total funds, 164 million customers, 9,000
branches and 212,000 employees.
Important information
Non-IFRS and alternative performance measures
This document contains financial information prepared according
to International Financial Reporting Standards (IFRS) and taken
from our consolidated financial statements, as well as alternative
performance measures (APMs) as defined in the Guidelines on
Alternative Performance Measures issued by the European Securities
and Markets Authority (ESMA) on 5 October 2015, and other non-IFRS
measures. The APMs and non-IFRS measures were calculated with
information from Grupo Santander; however, they are neither defined
or detailed in the applicable financial reporting framework nor
audited or reviewed by our auditors. We use these APMs and non-IFRS
measures when planning, monitoring and evaluating our performance.
We consider them to be useful metrics for our management and
investors to compare operating performance between periods.
Nonetheless, the APMs and non-IFRS measures are supplemental
information; their purpose is not to substitute IFRS measures.
Furthermore, companies in our industry and others may calculate or
use APMs and non-IFRS measures differently, thus making them less
useful for comparison purposes. For further details on APMs and
Non-IFRS Measures, including their definition or a reconciliation
between any applicable management indicators and the financial data
presented in the consolidated financial statements prepared under
IFRS, please see the 2022 Annual Report on Form 20-F filed with the
U.S. Securities and Exchange Commission (the SEC) on 1 March 2023 (
https://www.santander.com/content/dam/santander-com/en/documentos/informacion-sobre-resultados-semestrales-y-anuales-suministrada-a-la-sec/2023/sec-2022-annual-20-f-2022-en.pdf
), as well as the section "Alternative performance measures" of
this Banco Santander, S.A. (Santander) Q2 2023 Financial Report,
published on 26 July 2023 (
https://www.santander.com/en/shareholders-and-investors/financial-and-economic-information#quarterly-results
). Underlying measures, which are included in this document, are
non-IFRS measures.
The businesses included in each of our geographic segments and
the accounting principles under which their results are presented
here may differ from the businesses included and local applicable
accounting principles of our public subsidiaries in such
geographies. Accordingly, the results of operations and trends
shown for our geographic segments may differ materially from those
of such subsidiaries.
Non-financial information
This document contains, in addition to financial information,
non-financial information (NFI), including environmental, social
and governance-related metrics, statements, goals, commitments and
opinions.
NFI is included to comply with Spanish Act 11/2018 on
non-financial information and diversity and to provide a broader
view of our impact. NFI is not audited nor reviewed by an external
auditor. NFI is prepared following various external and internal
frameworks, reporting guidelines and measurement, collection and
verification methods and practices, which are materially different
from those applicable to financial information and are in many
cases emerging and evolving. NFI is based on various materiality
thresholds, estimates, assumptions, judgments and underlying data
derived internally and from third parties. NFI is thus subject to
significant measurement uncertainties, may not be comparable to NFI
of other companies or over time or across periods and its inclusion
is not meant to imply that the information is fit for any
particular purpose or that it is material to us under mandatory
reporting standards. NFI is for informational purposes only and
without any liability being accepted in connection with it except
where such liability cannot be limited under overriding provisions
of applicable law.
Forward-looking statements
Santander hereby warns that this document contains
"forward-looking statements" as per the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Such statements can be
understood through words and expressions like "expect", "project",
"anticipate", "should", "intend", "probability", "risk", "VaR",
"RoRAC", "RoRWA", "TNAV", "target", "goal", "objective",
"estimate", "future", "commitment", "commit", "focus", "pledge" and
similar expressions. They include (but are not limited to)
statements on future business development, shareholder remuneration
policy and NFI. However, risks, uncertainties and other important
factors may lead to developments and results to differ materially
from those anticipated, expected, projected or assumed in
forward-looking statements. The following important factors (and
others described elsewhere in this document and other risk factors,
uncertainties or contingencies detailed in our most recent Form
20-F and subsequent 6-Ks filed with, or furnished to, the SEC), as
well as other unknown or unpredictable factors, could affect our
future development and results and could lead to outcomes
materially different from what our forward-looking statements
anticipate, expect, project or assume: (1) general economic or
industry conditions (e.g., an economic downturn; higher volatility
in the capital markets; inflation; deflation; changes in
demographics, consumer spending, investment or saving habits; and
the effects of the war in Ukraine or the COVID-19 pandemic in the
global economy) in areas where we have significant operations or
investments; (2) climate-related conditions, regulations, policies,
targets and weather events; (3) exposure to various market risks
(e.g., risks from interest rates, foreign exchange rates, equity
prices and new benchmark indices); (4) potential losses from early
loan repayment, collateral depreciation or counterparty risk; (5)
political instability in Spain, the UK, other European countries,
Latin America and the US; (6) legislative, regulatory or tax
changes (including regulatory capital and liquidity requirements),
especially in view of the UK's exit from the European Union and
increased regulation prompted by financial crises; (7) acquisition
integration challenges arising from deviating management's
resources and attention from other strategic opportunities and
operational matters; (8) our own decisions and actions including
those affecting or changing our practices, operations, priorities,
strategies, policies or procedures; (9) uncertainty over the scope
of actions that may be required by us, governments and others to
achieve goals relating to climate, environmental and social
matters, as well as the evolving nature of underlying science and
industry and governmental standards and regulations; and (10)
changes affecting our access to liquidity and funding on acceptable
terms, especially due to credit spread shifts or credit rating
downgrades for the entire group or core subsidiaries.
Forward looking statements are based on current expectations and
future estimates about Santander's and third-parties' operations
and businesses and address matters that are uncertain to varying
degrees, including, but not limited to developing standards that
may change in the future; plans, projections, expectations,
targets, objectives, strategies and goals relating to
environmental, social, safety and governance performance, including
expectations regarding future execution of Santander's and
third-parties' energy and climate strategies, and the underlying
assumptions and estimated impacts on Santander's and third-parties'
businesses related thereto; Santander's and third-parties'
approach, plans and expectations in relation to carbon use and
targeted reductions of emissions; changes in operations or
investments under existing or future environmental laws and
regulations; and changes in government regulations, regulatory
requirements and internal policies, including those related to
climate-related initiatives.
Forward-looking statements are aspirational, should be regarded
as indicative, preliminary and for illustrative purposes only,
speak only as of the date of this document, are informed by the
knowledge, information and views available on such date and are
subject to change without notice. Santander is not required to
update or revise any forward-looking statements, regardless of new
information, future events or otherwise, except as required by
applicable law.
Not a securities offer
This document and the information it contains does not
constitute an offer to sell nor the solicitation of an offer to buy
any securities.
Past performance does not indicate future outcomes
Statements about historical performance or growth rates must not
be construed as suggesting that future performance, share price or
results (including earnings per share) will necessarily be the same
or higher than in a previous period. Nothing in this document
should be taken as a profit and loss forecast.
[1] Appointments subject to regulatory approvals where
applicable.
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END
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