By Jesús Aguado
MADRID (Reuters) -Spain’s Santander is consolidating its retail, commercial and consumer activities across all markets under two new global businesses to help it improve performance and add customers, it said on Monday.
The new Retail and Commercial unit and Digital Consumer Bank will join Santander’s other global operations in Corporate and Investment Banking, Wealth Management and Insurance and Payments, it said in a statement.
Potential cost savings were not disclosed, but the bank said the restructuring will help it achieve strategic goals outlined at its Investor Day in February, such as adding 40 million customers by 2025 and increasing its return on tangible equity (ROTE) to 15-17%.
“We are confident this will allow us to … deliver on all targets set out at the Investor Day, including double digit average annual growth in tangible net asset value plus dividend per share through the cycle,” Santander Chairman Ana Botin said in the statement.
The bank is benefiting from higher interest rates in Europe as it seeks to expand its investment banking business.
Global heads will define the common business and operating model based on global platforms, said the bank, with all operations aligned under five global business areas.
Retail and Commercial will be led by Daniel Barriuso.
The Digital Consumer Bank will be led by Jose Luis de Mora.
The payments unit PagoNxt will be headed by Javier San Felix, and Global Cards by Matias Sanchez.
Corporate & Investment Banking will continue to be led by Jose M. Linares. Wealth Management and Insurance will remain headed by Victor Matarranz.
Santander’s financial results will be reported under this new model as of January.
(Reporting by Jesús Aguado; Editing by Joan Faus and Richard Chang)
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