In Davos last month, Anna Putin, CEO of Banco Santander, was keen to achieve a virtue of the size of the Spanish lender.
She cleaned reports that the lender could leave the United Kingdom, and President Trump reminded, through the video link that Santander boasted more customers more than the largest American banks combined.
“Congratulations, I know a lot about your bank and I did a great job,” Trump applauded.
Others are less like. Since Putin inherited the upper function of her father in 2014, the group's shares have decreased by about a third.
Since other global banks such as HSBC and Citigroup give up the distant markets, there are questions about whether the sprawling Santander imprint-which includes 10 “basic markets”, more than 170 million customers, about 210,000 employees and a total of 1.8 million euros- It is still logical.
“Santander has a large public budget like some largest American banks, but they are trading with much lower and less profitable complications,” says Hugo Cruz, European bank analyst at KBW.
“There are questions about whether (Santander) already adds value or not. There is a cluster discount.”
The Spanish lender executives are not unaware of these concerns.
The bank explores a number of strategic options for its business in the United Kingdom, one of which is possible Exit The Financial Times reported last month.
In the two decades that Santander worked in the United Kingdom, the unit has largely produced fixed returns – but is disrupted – for its mother group. The bank argues that the reliability of returns in its business in the United Kingdom allows it to follow up on growth in more volatile markets, such as Latin America.
Santander said its model “has proven that it generates a steady growth” and that the value of its network was “clear” in the continuous improvement in the efficiency that is among our lowest peers, and we are continuing to invest for future growth. ”
On Wednesday, he is expected to reach a net profit of 12.2 billion euros for a period of 2024, an increase of 11.1 billion euros in the previous year. Trading complications about 0.96 times a concrete defense value.
However, the UK's weakest return for some other Santander markets, along with the British and Bixet resonance system, caused frustration within the broader group, according to the people familiar with the matter.
“The point is (Santander) a better return on capital in other markets, so the Board of Directors must reassess its commitment to the UK market at intervals.”
Last week, Santander's chair was announced in the United Kingdom William Sparrow He resigned after disputes with the leadership of the group, with a highlight of some discomfort in the process.
“What Santander owns is a very strong culture,” says one of the banker with the group. “They are very strong managers – Spanish managers have been trained on the Botín Road.”
While Putin has publicly said that the UK's actions were “not offered for sale” and will remain a “basic market”, Santender, people at the highest level of the bank said that the exit is still on cards.
A person familiar with this said that Santander had rejected a “low ball” offer for retail business in the UK from Barclays. Barclays refused to comment. Analysts estimated that Santander could generate between 11 billion euros and 15 billion euros from the sale of unit.
People familiar with the issue said that Barclays executives had also discussed the follow -up of the assets swap with Santander.
It was possible for the Spanish bank to transfer its work in the UK, which focuses on the mortgage to Barclays in exchange for the work of the United States Cards for the British Landforker, which gives both the markets as it is limited. The idea was never launched due to organizational obstacles and competition.
If Putin cools on Santander's arm in the United Kingdom – a company that ran directly before its ascension to the chair – it was prepared for the United States.
Putin began a great expansion in the companies of companies and investment in the Spanish lender.
In 2021, Santander acquired Amhere Pierpont Securities, a major dealer for the United States Treasury, for $ 600 million, and the bank pledged another $ 250 million to build the investment bank.
It was also widely recruited from Credit Suisse after the seizure of the Swiss lender by UBS.
“There was a lot of revenue growth in the Companies and Investment Bank,” says Cruz of KBW. “They rented all these people and you can see the drawings grow strongly.”
During the first nine months of 2024, Santander Investment Bank produced 6.3 billion euros in revenue, or approximately 14 percent of the higher lender line during this period. Five years ago, the Investment Bank contributed to the tenth of the bank's total revenues.
Internally, the bank's leaders have been talking about the benefits of investing in the United States since 2021 have only started in 2025.
Many bankers who have joined Santander in the past two years say the long delay is due to the bare bones infrastructure that lacks the support of the primary rear office for customers on the blue plane such as the main hedge boxes or access to industry data sources such as Dealogic. “There was nothing literally,” said one of the investment bankers in Santander.
Some bankers have joined guarantees of about $ 4 million, paying for the first year, with an understanding that something similar to the second year can be paid.
Tenants ranged through integration and acquisitions, financial financing and stock capital markets, a wide boost that caused curiosity about the size of its ambitions.
“History shows that it is difficult for European banks to compete in investment banking services in the United States,” says one of the senior executives in a European lender.
However, David Serra, the founder of algebra investments, who owns more than a billion euros of stocks and debt in Santander, says “one big advantage” of the American Investment Bank in Santander is “the corridor with Latin America”.
Santander has a strong presence in many countries throughout the region. Its work in Brazil, Mexico and Chilean is expected to produce 4.6 billion euros in the 2024 common profit, according to the analyst.
“I am not sure that you design a bank like this day from scratch,” says Chronin. “But geographical diversification gives revenue insulation, and there is a wonderful and reasonable budget between the exposure of advanced and emerging markets that seem to be working well.”
Santander has targeted concrete property rights – a main measure of the bank's profitability – about 16 percent for 2024, much higher than most of his European peers.
The bank told FT: “In the past two years, the total number of shareholders' return over their peers has exceeded and we are confident that our model still has a great aspect,” the bank told FT.
Serra said that Santander's higher return to property rights, along with relatively low fluctuations for her profits, made the Spanish lender a convincing investment issue and suggests that a mixture of multi -market retail privileges is “not out of fashion.”
“The stocks, like most other high -quality European banks, are very valuable,” Sira added. It is one of the biggest facts. What do you like about getting 10 percent salaries annually and grow? ”
But others wonder if the bank extends itself.
“Santander needs to think about what you want to do,” says one of the leading European bankers. “Is it retail? If so, in which countries are the banking services of companies? Their companies and the investment bank are not bad, but it is not great. There must be a tremendous rethink.”
Additional reports by Stephen Morris
