Santander: Fintech is nothing without customer growth

Global Market Strategy

• 🌍 Santander maintains a significant global presence with operations across Europe, Latin America, and the US.
• 📈 The bank strategically allocates capital, favoring the Americas for risk-reward while identifying growth opportunities in specific European products like insurance in Spain.
• 🏦 Santander's core business, comprising 70% of its operations, is focused on retail and commercial credit.

Regional Growth Opportunities

• 🏡 In Europe, Santander is a major mortgage lender in the UK, Spain, and Portugal, which is characterized as a low-risk business.
• 🚀 Latin America, particularly Mexico and Brazil, offers promising opportunities for growth in corporate banking.
• 📊 While credit growth in the Americas starts from a lower base, it demonstrates high growth rates.

Digital Transformation & Customer Focus

• 💡 Santander invests €10 billion annually in technology, with 30% dedicated to new investments like building proprietary tech platforms and core systems.
• 🛡️ The bank's digital strategy aims to secure a competitive edge against both fintechs and other traditional banks by delivering superior products.
• ✅ A primary metric for success is customer growth, which digital advancements are expected to accelerate across all markets.

Dynamic Capital Allocation

• 🛠️ Santander utilizes advanced dynamic capital allocation tools, refined over a decade, to maximize overall returns and risk-adjusted returns.
• 🎯 This strategic approach allows for flexible investment across diverse global businesses and geographies, while also preserving essential franchises such as mortgages in Spain.

Investor Perception & Future Outlook

• 🔍 Despite recent improvements in understanding, the sustainability and future profitability of Santander are still believed to be underestimated by investors.
• 📈 The bank anticipates significant upside potential and continued growth, expecting further improvements in profitability.