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Banco Santander, S.A.
Type Public (BMADSAN, LSE: BNC, NYSESTD (ADR), Euronext: SANT, SANTA, BM&F Bovespa:SANB3, BVC: 37)
Founded 1857
Headquarters Santander, Spain
Area served Europe, Latin America, Singapore, Hong Kong, Africa, USA
Key people Emilio Botín (Chairman of the board), Alfredo Sáenz Abad (CEO)
Industry Financial services
Products Banking, insurance, asset management
Revenue 31.04 billion (2008)[1]
Operating income €17.73 billion (2008)[1]
Profit €8.876 billion (2008)[1]
Total assets €1,050 billion (2008)[1]
Total equity €63.77 billion (2008)[1]
Employees 170,960 (2008)[1]
Website www.santander.com
Headquarters in Santander
Santander

Grupo Santander (BMADSAN, LSE: BNC, NYSESTD (ADR), Euronext: SANT, SANTA, BM&F Bovespa:SANB3) is a banking group centered on Banco Santander, the largest bank in the euro area (in terms of market capitalisation), which originated in Santander, Cantabria, Spain.

Contents

History

The 1999 merger of Banco Santander (founded in 1857) and Banco Central Hispano (founded in 1991) following the merger of Banco Central [est. 1919] and Banco Hispanoamericano [est. 1900]), created Banco Santander Central Hispano, or BSCH.[2]

The 1999 merger between Santander and Banco Central Hispano (BCH) was designed to be a "merger of equals" in which the top executives of the two pre-existing firms would share control of the merged entity. Soon after the merger former BCH executives accused Botin of trying to push his own agenda and threatened to take legal action against him. This post-merger squabbling was resolved when BCH executives Jose Amusategui and Angel Corcostegui agreed to accept severance payments, retire and renounce control to Mr. Botin, at an expense to shareholders of €164M.[3]

The large termination payouts generated negative press and Mr. Botin was eventually brought to trial on criminal charges of "misappropriation of funds" and "irresponsible management." However, in April 2005 he was cleared of all charges. The verdict said the €164M retirement payments made to the two former executives were legal, "made as compensation for the services provided to the bank." In 2005 the anti-corruption division of the Spanish public prosecutor's office cleared Mr. Botin of all charges in a separate case in which he was accused of insider trading.[4]

On 26 July 2004 Banco Santander Central Hispano announced the acquisition of Abbey National plc. Following shareholders' approval at the EGMs of Abbey (95 per cent voted in favour, despite vocal opposition from most of those present) and Santander, the acquisition was formally approved by the courts and Abbey became part of Grupo Santander on 12 November 2004.[5]

In June 2006, Banco Santander Central Hispano purchased almost 20% of Sovereign Bank and acquired the option to buy the bank for $40 per share for one year beginning in the middle of 2008.[6]

In May 2007 Banco Santander Central Hispano announced that in conjunction with Royal Bank of Scotland and Fortis it would make an offer for ABN AMRO. BSCH's share of the offer added up to 28% and the offer would have to be made up of a capital increase through a new share issue. Then in October 2007 the consortium outbid Barclays and acquired ABN AMRO. As part of the deal, Grupo Santander acquired ABN AMRO's subsidiary in Brazil, Banco Real, and its subsidiary in Italy, Banca Antonveneta.[7]

On 13 August 2007, Banco Santander Central Hispano changed its legal name to Banco Santander.

In November 2007, it sold Banca Antonveneta to Monte dei Paschi di Siena. In March 2008, Banco Santander sold Interbanca, a subsidiary of Banca Antonveneta, to GE Commercial Finance, receiving in return GE Money businesses in Germany, Finland and Austria, and GE's Card and Auto Financing Businesses in the UK, which it will integrate into Santander Consumer Finance.[8]

The group announced in July 2008 that it intended to takeover the UK bank Alliance & Leicester, with £24bn in deposits and 254 branches.[9] The acquisition was completed in October 2008 when the group delisted the company's shares from the London Stock Exchange. This was followed by the acquisition of the savings business of UK bank Bradford & Bingley (B&B) in September 2008, with deposits of £22bn, 2.6m customers, 197 branches and 140 agencies.[10] The banks, along with Abbey, are to be merged together under the Santander name in the UK by the end of 2010.[11]

In October 2008, Grupo Santander announced that it would acquire the 75.65% of Sovereign Bancorp it does not currently own for approximately US$1.9 billion (€1.4 billion): the acquisition of Sovereign has given Santander its first retail bank in the mainland United States.[12]

Operations

In the wake of the current financial crisis it has become the largest bank in Europe,[13] replacing HSBC, which used to be the first in terms of market capitalization[14].

Grupo Santander has numerous operations in Latin America. It has rebranded most of the subsidiaries it has acquired to Santander.

Grupo Santander consists of 131,819 employees, 65.1 million customers, 11,178 branches and 2.27 million shareholders. Retail banking - the main aspect of Santander's operations - generates 82% of the group's profit.

Currently, Santander is a corporate sponsor of the McLaren-Mercedes Formula 1 team[15] and the Copa Libertadores de America.

On 1 December 2008, Santander announced that their Formula One sponsorship deal with McLaren will end in 2010, when Santander will become Ferrari's main sponsor. However, in September 2009, Santander announced that it will continue its sponsorship with Vodafone McLaren-Mercedes due to its brand awareness in the UK rising from 20 to 82 percent.[16]

On 14 December 2008, it was revealed that the collapse of Bernard Madoff's Ponzi scheme might mean the loss of 2.33 billion euros at Banco Santander.[17]

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Global operations

European operations

  • Bosnia and Herzegovina
    • Nova Santander Banka d.o.o. Trebinje
  • Denmark
    • Santander Consumer Bank AS
  • Germany
    • Santander Consumer Bank AG - www.santander.de
    • Santander Consumer Debit GmbH
    • Santander Consumer Leasing GmbH
  • Jersey (UK)
    • Abbey International
  • Switzerland
    • Santander Private Banking

Latin American operations

  • Argentina
    • Banco Santander Río (after acquisition of the local Banco Río by Santander)
  • Chile
  • Colombia
    • Banco Santander Colombia
  • Mexico
    • Banco Santander (from merger of Banco Mexicano, Banco Serfín and Santander)

Asian operations

  • China
    • Banco Santander, S.A. - Hong Kong Branch
    • Banco Santander, S.A. - Shanghai Branch

African operations

North American operations

  • USA
    • Santander Private Banking
    • Sovereign Bank
    • Santander Consumer USA Inc.
    • Santander Global Banking & Markets

See also

References

Notes

Sources

  • Guillén, Mauro and Adrian Tschoegl (2008) Building a Global Bank: The Transformation of Banco Santander. (Princeton, NJ: Princeton University Press).

External links


Simple English

Banco Santander, S.A.
Type Sociedad Anónima (Template:BMAD, LSE: BNC, NYSE: STD, Template:Euronext, Template:Euronext3, Template:ISE, BM&F Bovespa:SANB3)
Industry Financial services
Founded 1857
Headquarters Santander, Cantabria, Spain
Area served Europe, Latin America, Singapore, Hong Kong, Africa, USA
Key people Emilio Botín (Chairman), Alfredo Sáenz Abad (CEO)
Products Retail, corporate, investment and private banking, insurance, asset management, private equity
Revenue 39.38 billion (2009)[1]
Operating income €22.96 billion (2009)[1]
Profit €8.943 billion (2009)[1]
Total assets €1,111 billion (2009)[1]
Total equity €73.87 billion (2009)[1]
Employees 169,460 (2009)[1]
Website www.santander.com
File:Another new Santander bank - geograph.org.uk -
A branch of Santander in Cardiff, United Kingdom.

Grupo Santander is a banking group centered on Banco Santander, the largest bank in the Eurozone.[2] Grupo Santander is one of the largest banks in the world (in terms of market capitalisation). It originated in Santander, Cantabria, Spain.

Contents

History

Banco Hispanoamericano was created in 1900. Banco Central was created in 1919. Banco Central and Banco Hispanoamericano merged. Banco Santander was founded in 1857. Banco Central Hispano was founded in 1991. In 1999, Banco Santander and Banco Central Hispano merged, creating Banco Santander Central Hispano, or BSCH.[3]

The 1999 merger between Santander and Central Hispano was designed to be a "merger of equals". The the top executives of the two firms would share control of the new firm. Soon after the merger former Central Hispano executives thought chairman Botin of trying to control the firm. They threatened to take legal action against him. The issue was resolved when Central Hispano the executives agreed to severance payments (money given when leaving a company), retirement. They also turned control of the firm over to Mr. Botin. This action cost the shareholders of the firm €164M.[4]

Because of the large payouts, Mr. Botin was brought to trial on criminal charges of "misappropriation of funds" (using company money the wrong way) and "irresponsible management." In April 2005 he was cleared of all charges. The decision said the retirement payments made were legal, "made as compensation for the services provided to the bank."

In 2005, Mr. Botin was accused of insider trading (trading stock based on knowledge the general public did not have). The anti-corruption division of the Spanish public prosecutor's office cleared Mr. Botin of all charges.[3]

On 26 July 2004 Banco Santander Central Hispano announced the purchase of Abbey National plc. The shareholders' approved of the purchase, and it was formally approved by the courts. Abbey became part of Grupo Santander on 12 November 2004.[5]

In June 2006, Banco Santander Central Hispano purchased almost 20% of Sovereign Bank. They also acquired the option to buy Sovereign Bank for $40 per share in the middle of 2008.[6]

In May 2007 Banco Santander Central Hispano announced that it would make an offer to purchase ABN AMRO. This offer was in conjunction with Royal Bank of Scotland and Fortis. BSCH's offered to purchase 28% of ABN AMRO. The offer would be made by a capital increase through a new stock share issue. In October 2007, the group outbid Barclays and purchased ABN AMRO. As part of the deal, Grupo Santander acquired ABN AMRO's subsidiary in Brazil, Banco Real, and its subsidiary in Italy, Banca Antonveneta.[7]

On 13 August 2007, Banco Santander Central Hispano changed its legal name to Banco Santander.

In November 2007, it sold Banca Antonveneta to Monte dei Paschi di Siena. In March 2008, Banco Santander sold Interbanca, a subsidiary of Banca Antonveneta, to GE Commercial Finance In return, it received GE Money businesses in Germany, Finland and Austria, and GE's Card and Auto Financing Businesses in the UK. These will be integrate into Santander Consumer Finance.[8]

The group announced in July 2008 that it intended to takeover the UK bank Alliance & Leicester. Alliance & Leicester had £24bn in deposits and 254 branches.[9] The purchase was completed in October 2008 when the group removed the company's shares from the London Stock Exchange. This was followed by the purchase of the savings business of UK bank Bradford & Bingley (B&B) in September 2008 B&B had deposits of £22bn, 2.6m customers, 197 branches and 140 agencies.[10] The banks, along with Abbey, are to be merged together under the Santander name in the UK by the end of 2010.[11]

In October 2008, Grupo Santander announced that it would purchase the 75.65% of Sovereign Bancorp it does not currently own. This would cosst approximately US$1.9 billion (€1.4 billion). The purchase of Sovereign has given Santander its first retail bank in the mainland United States.[12]

Operations

Grupo Santander has numerous operations in Latin America. It has renamed most of the subsidiaries it has acquired to Santander.

Grupo Santander has 131,819 employees, 90.1 million customers, 11,178 branches and 2.27 million shareholders. Retail banking - the main part of Santander's operations - generates 82% of the group's profit.

Currently, Santander is a corporate sponsor of the Ferrari Formula One team[13] and the Copa Libertadores de America.

On December 1, 2008, Santander announced that their Formula One sponsorship deal with McLaren will end in 2010, when Santander will become Ferrari's main sponsor. However, in September 2009, Santander announced that it will continue its sponsorship with Vodafone McLaren-Mercedes due to its brand awareness in the UK rising from 20 to 82 percent.[14]

On December 14, 2008, it was revealed that the collapse of Bernard Madoff's Ponzi scheme might mean the loss of 2.33 billion euros at Banco Santander.[15]

On November 10, 2009, HSBC Finance Corporation announced an agreement with Santander Consumer USA Inc. (SC USA). SC USA would sell HSBC US auto loan processing operations, and US $1 billion in auto loan receivables (money due to be received) for US $904 million in cash. SC USA would also enter into a loan processing agreement for the remainder of its US auto loan portfolio. This portfolio is in liquidation (being sold to pay off a debt). The transaction is expected to close in the first quarter of 2010.[16]

Global operations

European operations

  • Bosnia and Herzegovina
    • Nova Santander Banka d.o.o. Trebinje
  • Denmark
    • Santander Consumer Bank AS
  • Germany
    • Santander Consumer Bank AG - www.santander.de
    • Santander Consumer Debit GmbH
    • Santander Consumer Leasing GmbH
  • Jersey (UK)
    • Abbey International
  • Luxembourg
    • Banco Santander Totta S.A
  • Portugal
    • Banco Santander Consumer Portugal, SA - www.santanderconsumer.pt
    • Crédito Predial Português
    • Hispamer
    • Banco Santander Totta S.A
  • Spain
  • Switzerland
    • Santander Private Banking

Latin American operations

  • Brazil
    • Banco Santander Brasil
  • Chile
    • Banco Santander-Chile (exBanco Santander Santiago)
    • Banco Santander Banefe
  • Colombia
    • Banco Santander Colombia
  • Mexico
    • Banco Santander (from merger of Banco Mexicano, Banco Serfín and Santander)

Asian operations

  • China
    • Banco Santander, S.A. - Hong Kong Branch
    • Banco Santander, S.A. - Shanghai Branch

African operations

  • Attijariwafa Bank (4,55% share)

North American operations

  • USA
    • Santander Private Banking
    • Sovereign Bank
    • Santander Consumer USA Inc.
    • Santander Global Banking & Markets
    • Roadloans -- www.roadloans.com

Other pages

  • Inter-Alpha Group of Banks

References

Notes

Sources

  • Guillén, Mauro and Adrian Tschoegl (2008) Building a Global Bank: The Transformation of Banco Santander. (Princeton, NJ: Princeton University Press).

Other websites


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