2023-12-20 20:48:24
Santander Bankchaired by Ana Botinpublished this Wednesday, December 20, its financial information for the last seven quarters, adapted to the new operating model that it announced last September, in which the entity’s five global businesses become the new main segments.
In this way, all the activities of Santander Bank They will be distributed next year in Retail & Commercial Banking (new area that unifies the entire retail and commercial banking business), Digital Consumer Bank (unites the consumer financing segment of the entire Santander Group), Payments (PagoNxt and Global Cards), Corporate & Investment Banking (Santander CIB), and Wealth Management & Insurance, which is already a global business.
To facilitate comparisons and year-on-year analysis of data, Banco Santander has published its adapted financial information for the last seven quarters for each of the global businesses. These changes “do not affect the regions or countries, nor do they change the consolidated results of the Group.”
In Banco Santander’s new reporting model, the five global areas will be the entity’s main segments starting in the first quarter of 2024. For its part, financial information from regions and countries will continue to be published as secondary segments.
Banco Santander has stated that the Group’s annual results in 2023, which will be announced on January 31, 2024, will be published with both the current model and the new one.
Banco Santander’s new operating model aligns all of the entity’s businesses with its strategy, and aims to improve customer service, and take advantage of the full potential of the Group’s global and local network.
Likewise, it will facilitate the management of Banco Santander with a simpler and more efficient operating model, without modifying the Group’s strategic objectives.
Among these objectives, Banco Santander wants to achieve a return on tangible capital (RoTE) of between 15% and 17% between 2023 and 2025, an efficiency ratio of around 42% in 2025, maintain a higher ‘fully loaded CET1’ to 12%, and obtain double-digit growth on an annual average in the sum of the tangible book value (TNAV) per share plus the dividend per share.
Finally, the new model makes it possible for the results of activities related to financial management, which are currently in the countries, to be assigned to global businesses.
Santander Bank has indicated that the criteria for distributing income between the units have also been reviewed, to show more precisely the value provided by the commercial network of the entity chaired by Ana Botín.
Thus, Banco Santander has sent the breakdown of the main financial impacts on attributed profit by business, emphasizing that the Group’s profit, of 8,143 million euros, has not changed.
Retail & Commercial Banking (new area that unifies the entire retail and commercial banking business) closes the first nine months of the year with 4,419 million euros; Digital Consumer Bank (brings together the consumer financing segment of the entire group), with 1,444 million euros; Payments (PagoNxt and Global Cards), with 403 million euros; Corporate & Investment Banking (Santander CIB), with 1,853 million euros, and Wealth Management & Insurance, which is already a global business, with 1,109 million euros.
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