Banco Santander CEO Ana Botin plans to expand the company’s U.S. presence in the areas of renewable energy, auto loans and wealth management. This is part of a broader strategy to diversify revenues through expansion into the world’s largest economy.
“Our strategy is very much about playing to our strengths,” she said in an interview during the Reuters Next conference in New York. “In a normal interest rate environment, we will perform better than our competitors.”
Spain’s largest bank is trying to double its investment banking business in the United States, although recent results have been hurt by loan losses, higher financing costs and expenses to expand its operations.
The bank said last month that U.S. net profit fell by 50% in the third quarter from a year ago, while net interest income, the difference between income from loans and the cost of deposits, fell by 15%.
Provisions increased by 49% in the third quarter compared to the same period last year.
The Spanish bank is hiring staff from troubled Credit Suisse as part of its efforts to expand its business. Reuters reported in July that Santander intended to hire about 150 employees at the bank (link), primarily in the United States.
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