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Bloomberg
Banco Santander SA is planning to simplify the structure of its US operations by discontinuing businesses such as home loans and focusing on consumer lending.
Spain’s biggest bank may also review some of its commercial and industrial business lending, it said in a presentation.
Santander has been pivoting towards areas with scope for more profitable growth in the US, announcing a buy-out last year of minority investors at its consumer finance division there. It also agreed to purchase Amherst Pierpont Securities, an independent US broker dealer, as part of a push into fixed-income trading.
The buyout will allow the bank to pivot toward consumer finance in the US, a business that can “generate lots of value for shareholders,†Chairman Ana Botin said in an interview with Bloomberg TV.
Underlying profit from the US more than tripled last year to $2.64 billion.
Santander Pledges
Profitability Growth
Banco Santander SA pledged to increase profitability and shareholder payouts as rising interest rates in key markets from the Americas to Europe are set to boost income from lending at the Spanish retail banking behemoth.
The bank also signaled it’s done strengthening capital buffers after rebounding from steep losses two years ago at the onset of the pandemic. In the long run, Santander said it aims to boost shareholder payouts beyond the current 40% of underlying profit.
While the retail-focused bank hasn’t benefited as much as some rivals from the trading and dealmaking rally, it stands to gain as economies worldwide return to growth and interest rates rise in markets from the US to the UK.