Banco Santander Stock

Banco Santander, S.A. operates as a retail bank.

Primary segments

Europe: Includes all business activity carried out in the region, except that included in Digital Consumer Bank.

North America: Includes all the business activities carried out in Mexico and the U.S., which includes the holding company (SHUSA) and the businesses of Santander Bank, Santander Consumer USA (SC USA), the specialized business unit Banco Santander International, the New York branch and Santander US Capital Markets (SanCap).

South America: Includes all the financial activities carried out by Grupo Santander through its banks and subsidiary banks in the region.

Digital Consumer Bank: Includes Santander Consumer Finance, which incorporates the entire consumer finance business in Europe, Openbank and Open Digital Services (ODS).

Secondary segments

At this secondary level in 2023, Grupo Santander was structured into Retail Banking, Santander Corporate & Investment Banking (SCIB), Wealth Management & Insurance (WM&I) and PagoNxt.

Retail Banking: This segment covered all customer banking businesses, including consumer finance, except those of corporate banking which were managed through Santander Corporate & Investment Banking and asset management, private banking and insurance, which are managed by Wealth Management & Insurance. The results of the hedging positions in each country were also included, conducted within the sphere of their respective assets and liabilities committees.

Santander Corporate & Investment Banking: This segment included global corporate banking, investment banking and markets worldwide including treasuries managed globally, as well as equity business.

Wealth Management & Insurance: Includes the asset management business (Santander Asset Management), the corporate unit of Private Banking and International Private Banking in Miami and Switzerland (Santander Private Banking) and the insurance business (Santander Insurance).

PagoNxt: This includes digital payment solutions, providing global technology solutions for the company’s banks and new customers in the open market. It was structured into four businesses: Merchant, International Trade, Payments and Consumer.

The company’s activities are organized under five global businesses: Retail & Commercial Banking, Digital Consumer Bank, Corporate & Investment Banking, Wealth Management & Insurance, and Payments.

Retail & Commercial Banking: A new global business integrating the company’s retail and commercial banking activity.

Digital Consumer Bank: A single model across the company’s markets for its consumer and auto finance business and for Openbank. The company’s priorities for 2024 are to: expand its leadership in consumer lending across its footprint; converge towards a global operating model, a more digital one; and continue to build flex-term solutions (leasing, subscription) off common platforms.

Corporate & Investment Banking: The company’s global platform to support corporates and institutions.

Wealth Management & Insurance: Common service models for the company’s private banking, asset management and insurance businesses.

Payments: Single infrastructures for the company’s payment solutions: PagoNxt and Cards. PagoNxt continues to scale up the company’s global platform of innovative payments and integrated value-added solutions.

Strategy

The company is leveraging the strength of its global businesses to accelerate the transformation of its businesses in the U.S. and Mexico. The company remains focused on customer experience and service quality, and on making the structural changes needed to develop a common operating model for Europe. The company’s strategy is to continue to reinforce the company’s auto leadership through strategic alliances, leasing and subscription. In non-auto, keep upscaling the company buys now, pay later business. Transformation for future growth deploying a simpler organizational structure to deliver through best-in-class digital platforms, launching new channels and products.

The company’s strategy is to secure leadership positions in global digital consumer lending, both auto and non-auto (consumer); continue with the transformation of its operating model in Europe, to defend its best-in-class efficiency through: i) single IT platforms. The company’s strategy is grow by progressing in transformational projects in Europe, with new OEM partnerships and leasing platform in auto and through the full transition to Zinia's tech stack in consumer.

Regulations

The company is required to prepare and submit periodically to the Federal Reserve Board and the Federal Deposit Insurance Corporation ('FDIC') a plan, commonly called a living will (the '165(d) plan'), for the orderly resolution of its subsidiaries and operations that are domiciled in the United States in the event of future material financial distress or failure. The company, on behalf of its insured depository institution (IDI) subsidiary, Santander Bank, N.A. (Santander Bank), must also submit a separate IDI resolution plan ('IDI plan') to the FDIC. The bank designated its wholly-owned subsidiary, Santander Holdings USA, as its US IHC. Santander Holdings USA is subject to the Federal Reserve Board’s final rule implementing the FSB’s international Total Loss Absorbing Capital ('TLAC') standard, which establishes certain TLAC, long-term debt ('LTD') and clean holding company requirements for US IHCs of non-US G-SIIs, including Santander Holdings USA. Santander Holdings USA is compliant with all applicable requirements. Compliance with the final TLAC rule has resulted in increased funding expenses for Santander Holdings USA and, indirectly, the bank.

Santander Bank and other of the company’s the U.S subsidiaries also use credit bureau data in their underwriting activities, and the use of such data is regulated under the Fair Credit Reporting Act ('FCRA'). Santander Bank and the company’s the U.S. subsidiaries are also subject to the rules and regulations promulgated under the authority of the Federal Trade Commission, which regulates unfair or deceptive acts or practices, including with respect to data privacy and cybersecurity. Additionally, the company’s New York branch is supervised by the New York State Department of Financial Services ('NYDFS').

History

Banco Santander, S.A. was founded in 1856. The company was incorporated in 1857.