Ana Botín yesterday in the house of his father. / Bernardo Perez
Among the analysts financial, when asked about the biggest challenges of Banco Santander, always started by the succession of Booty. This concern was increasing over the years and the silence of the president, but yesterday the mystery was resolved dramatically.
Once on the bridge, Ana Botin (Santander, 1960) the eldest son of Booty, is facing major challenges. All objectives will be conditioned by the financial crisis, that after seven years’ duration, still without a predictable end, although the situation has improved since the Years of Lead, 2011 and 2012 One of the most important consequences of the financial meltdown has been that international monitors have increased capital requirements for banks to strengthen them.
This, as well as the weak market for scarce credit granted, has sunk profitability of bank shares, including Santander in the recent years. Javier Marín himself, CEO, has recently admitted that raise the profitability of Santander is the priority. The group’s shares reached 15 euros on the stock exchange in 2007 and now worth half, 7.7 euros, according to yesterday’s close.
The second consequence of the first, the challenge will be to consolidate in Santander ten major countries in which it operates, but does business in 40 markets. This work is one to which Marin has been dedicated since his appointment in April 2013 “It is clear that you can not repeat the work he has done Emilio Botin, that has taken several crises for profitable growth, something that is not easy to make and impossible to repeat the medium term, “says Iñigo Vega, bank-securities expert Nau. According to this expert, the stock performance of Santander since 1990 is better than almost all the European banks of similar size, including giant HSBC, “and more favorable than Citigroup, one of the American giants.”
Spain, Brazil and the United States are subsidiaries to devote more attention to his low performance, experts
Santander will enter in any of the major European countries where it is not present? The crisis has particularly touched to the German bank, a country where the entity is already present but only with consumer banking. Experts believe that after the stress test and affordable weaker entities may appear, but also remember that it is a very unprofitable, risky and low-margin financial sector.
What no one doubts is that keep Ana Botin geographic diversification as one of the flags of the group, as it has been one of the keys to overcome the crisis and avoid losses despite the blows to the brick crisis, especially in Spain.
No But not all are equally strong divisions. “Spain, Brazil and the United States will be occupying more time because you must straighten Ana Botin to achieve full potential and now they do not reflect” says Vega. Of these countries is the United States that is less on track, as permitted sources of the entity.
At the beginning of his career, after passage through JPMorgan, Ana Botín developed investment banking Santander United States and Asia. The project ended with a sad ending for the arrival of the currency crisis in early 2000.
Some experts question whether the medium term, the new president will boost the business of investment banking. Most of the sources dismiss it because they see what difference now (and appreciates) to Santander with other international giants is its large share in retail banking in the 10 countries where it operates. In fact, last year 74% of the profits came from this type of business.
Ana Botín has a difficult challenge because the economic situation and must prove he is not president because he has inherited the position of his father. If successful in the challenges it faces, will end the legend.
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