Saturday, February 24, 2024

Santander’s US private banking continues to seek Latin American fortunes

The bet on Santander Bank on Deer has two pillars: one is to capture retail deposits and thus be able to develop its consumer credit business. Another is to use Miami as a battering ram to capture the great fortunes of Latin America.

This is what the CEO of Santander, Héctor Grisi, promoted when publishing the results; he specified that they will launch a new savings product this year and offer more similar options in 2025.

According to Europa Press, the strategy of Santander includes strengthening the consumer credit business, especially car financing, by capturing retail deposits, which cost less than going to the market to finance itself with debt.

Loans, profits, and private banking

35% of car loans are financed by deposits, and the bank aims to reach half of this percentage next year.

While the cost-effectiveness (RoTE) in the consumer division of the United States has reached 11%, to reach a range from 15% to less than 20%,

Speaking of private banking, Santander Miami is committed to becoming its stronghold to attract large Latin fortunes that have fled the Florida city due to the financial instability of their countries.

Three years ago, the bank of Botín bought the private banking business of Indosuez, which includes almost 4,000 million euros in client assets and liabilities.

Last year, the entity managed a cross-business volume between Latin America, Europe, and the United States of around 53.88 billion euros, a 15% increase over 2022.

Reverse the decline in US business

Santander prefers to focus on more profitable business lines and leave others with lower growth prospects, such as mortgages.

Of the 4.51 million clients the bank has in the US, about 4.22 million are considered active. However, its net profit was 932 million euros, 47.7% lower than in 2022, while total revenue fell 5.4% to 7,209 million euros.

World Nation News Desk
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