Santander Private Banking

Transcription

SANTANDER
PRIVATE BANKING
Investors’ Day
Boadilla del Monte. September 14th, 2007
Important information
Banco Santander, S.A. ("Santander") cautions that this presentation contains forward-looking statements within the meaning of the US Private Securities Litigation
Reform Act of 1995. These forward-looking statements are found in various places throughout this presentation and include, without limitation, statements concerning
our future business development and economic performance. While these forward-looking statements represent our judgment and future expectations concerning the
development of our business, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our
expectations. These factors include, but are not limited to: (1) general market, macro-economic, governmental and regulatory trends; (2) movements in local and
international securities markets, currency exchange rates, and interest rates; (3) competitive pressures; (4) technological developments; and (5) changes in the financial
position or credit worthiness of our customers, obligors and counterparties. The risk factors and other key factors that we have indicated in our past and future filings
and reports, including those with the Securities and Exchange Commission of the United States of America (the “SEC”), could adversely affect our business and
financial performance. Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements.
Neither this presentation nor any of the information contained therein constitutes an offer to sell or the solicitation of an offer to buy any securities or any advice or
recommendation with respect to such securities.
The information contained in this presentation is subject to, and must be read in conjunction with, all other publicly available information, including, where relevant
any fuller disclosure document published by Santander. Any person at any time acquiring securities must do so only on the basis of such person's own judgment as to
the merits or the suitability of the securities for its purpose and only on such information as is contained in such public information having taken all such professional or
other advice as it considers necessary or appropriate in the circumstances and not in reliance on the information contained in the presentation.
In connection with the offer for ABN AMRO, The Royal Bank of Scotland Group plc (“RBS”) has filed with the SEC a Registration Statement on Form F-4, which
includes a preliminary version of the prospectus, and Fortis, RBS and Santander (collectively, the "Banks") have filed a Tender Offer Statement on Schedule TO and
other relevant materials. The Form F-4 has not yet become effective. INVESTORS ARE URGED TO READ ANY DOCUMENTS REGARDING THE OFFER, BECAUSE
THEY CONTAIN IMPORTANT INFORMATION. Investors can obtain a copy of such documents without charge, at the SEC's website (http://www.sec.gov). Copies of
all documents filed in connection with the offer may also be obtained from each Bank, without charge.
Nothing contained in this presentation is an offer of securities for sale into the United States. No offering of Securities shall be made in the United States except
pursuant to registration under the U.S. Securities Act of 1933, as amended, or an exemption therefrom.
Nothing contained in this presentation is intended to constitute an invitation or inducement to engage in investment activity for the purposes of the prohibition on
financial promotion in the U.K. Financial Services and Markets Act 2000. In making this presentation available, Santander makes no recommendation to buy, sell or
otherwise deal in shares in Santander or in any other securities or investments whatsoever and you should neither rely nor act upon, directly or indirectly, any of the
information contained in this presentation in respect of any such investment activity.
Note: Statements as to historical performance, historical share price or financial accretion are not intended to mean that future performance, historical share price or
future earnings (including earnings per share) for any period will necessarily match or exceed those of any prior year. Nothing in this presentation should be construed
as a profit forecast.
2
Agenda

Private banking in Santander Group, today

Global Private Banking Project

Business models adapted to market

Outlook 2009
3
4
Private banking business in Santander
TOTAL (31/12/06)
Int. Private Banking

€140 bill. AUM*

€555 mill. PBT
€ 21 bill. AUM
México
Venezuela
Colombia
UK
€ 26 bill. AUM
Brazil
Latam banks
€ 13 bill. AUM
Chile
Italy
Argentina
Iberia
€ 80 bill. AUM
(*) Including assets under administration
€0.3 bill. AUM
5
Agenda
Group, today

Private banking in Santander

Outlook 2009
6
SANTANDER
RETAIL BANKING
EUROPE
Santander Totta
Private Banking
BANIF
Fumagalli
International
Private Banking
(SPB)
ABBEY
Cater Allen
James Hay
AMERICA
Santander Mexico
Santander network
Private Banking
Santander Brazil
Banesto network
Private Banking
Santander Chile
Banco Venezuela
Santander Río
Units in the GPB project with direct management
Units in the GPB project with shared management
7
Global Private Banking Project units
TOTAL (31/12/06)
IPB

€96 bill. AUM*

€324 mill. PBT
México
Venezuela
Colombia
UK
Brazil
Portugal
Italy
Chile
Spain: BANIF
Argentina
Why these units?

These are the private banking units with a clearly segmented
commercial channel, which facilitates an immediate implementation
and integration

Autonomous domestic private banking units need greater assistance
from a central unit in order to achieve higher growth rates

In all of them, important synergies in products, IT and HH.RR., can be
attained
UNITS WITH HIGHER GROWTH RATES ACHIEVABLE,
HIGHER ECONOMIES OF SCALE AND
WITH MORE ROOM FOR IMPROVING
8
Best capabilities for boosting growth while maximising
quality and cost synergies
HHRR

Attracting, retaining and training the best professionals.
Business
model

Client relationship protocols, advisory process, branch layout...
Products

Leveraging on the division critical mass and the local teams

Use of corporate resources (Isban, Produban...), tools (Altair,
Partenón...) and workflows

Unique client relationship management tools (CRIS....)
Business
intelligence
ADAPTED TO LOCAL MARKETS BY LOCAL TEAMS
9
Attracting, retaining and training the
best professionals

Exporting a global training program, common
to all units,

… adopting a single career plan, locally
adapted, defining remuneration and
professional development and

… being one of the top global players in
private banking,
We are one of the first choices for attracting
the BEST TALENT in the market
10
11
Adapting a successful business model in
onshore banking
Products/Services

Advisory plus
execution
Full Open
architecture
All banking
products
Distribution

Branch Layout

High availability

Remote channels

Direct and
intermediaries
Sale
Service level

Personal
relationship

Definition of
service levels

Highly confidential

Tailor made
conditions

Client
management
Financial Strength
(Grupo
Santander).

Ad hoc
information
Bank close to
clients.

Exclusive

Mint execution

Proactivity
Innovative and
modern

Strict compliance
Own specialized
advisory teams
Transparent
Pricing policy
Combining the use of
local brands with
one global brand
Brand image
12
Maximising synergies in products
and services

Backed by in open architecture policy, agreements and procedures,
units can offer the widest range of investment products easily and in a
short time

Combining the critical mass of the division, all units will have access to:
–
structured products,
–
portfolio management capabilities
–
real estate advice...
… maximising economies of scale.

Access to global research of the different countries covered by the units
and the Group.
13
Exporting business intelligence
Banif´s business model is based on a state of the art technology (in-house
developed), that upgrades a standard banking platform to provide the best
private banking service.
Other products
Local Unit Banking
IT platform
1.Communication
8. Warrants
15. Banking Transfers
2.Web Internet
9. Securities
16. Checks
3.Web Intranet
10. Funds Manager
17. Electronic banking
4. IT Architecture
11. Pension Plans
Manager
18. Accounting
5. Clients
12. Insurance
6. Customers account
13. Cards
19. Tax Information
System
7. Launch
14. Payments
20. Foreign
1. Integrated Position
2. SIGA
3. Tax Structure and derivates
4. Regulatory entities
Client management CRIS
Reporting to clients
14
An adaptable IT solution
PARTENON
REGULATORY
REPORTING
BANIF
WEB
REDC
INTERNET
WEB
INTERNET
WEB
WEB
GUARANTEES
INTERNET
INTRANET
INTERNET
CLIENT
WEB
INTERNET
DB
PERSONAL
WEB
ACCOUNTS
INTERNET
WEB
CREDITS
INTERNET
WEB
LOANS
INTERNET
SIGA
WEB
CARDS
INTERNET
WEB
CHECKS
INTERNET
WEB
DEBITS
INTERNET
WEB
´TRANSFER.
INTERNET
TAX
FIXED
WEB
INTERNET
INCOME
WEB
FUNDS
INTERNET
WEB
SECURITIES
INTERNET
ASSET
WEB
INTERNET
MNGMNT.
PRODUCTS
INSURANCE
ACCOUNT.
TAX INFO
FOREX
DHW
INTEGRATED
POSSITION
MANAGEMENT
INFORMATION
(CRIS, MIS, PDA)
INFORMATION
TO CLIENTS
15
Client Relationship Integrated System
CRIS provides On line indepth information to…
Private Banking Advisors
About Clients:
–
Portfolio breakdown, profitability,
operations, tax issues…
Risk adequacy and product suitability
–
Loyalty parameters.
–
History of contacts
–
Tailor-made reports for clients
–
Marketing and advisory aid
–
About private banker´s portfolio:
–
P&L Drill down
–
Budget follow up
–
Compliance issues
Bank's management
–
Pyramidal drill down analysis
–
Commercial control linked any
parameter database field
–
M.I.S.
–
Operational control
–
Marketing information
Adapted to local markets

Every market has its own practices,
legal framework, systems, tax
environment, and client behaviour.

Only a local team with strong market
knowledge in coordination with the
division can implement the strategy
successfully
16
17
An exportable model
BANIF
IPB
UK
Italy
LatAm
HHRR
;
;
;
;
;
;
Business model
;
:
;
;
;
;
Products
;
;
;
;
;
;
Global Technology and
Operations
;
;
;
;
;
;
TWO BUSINESS MODELS; ONE SINGLE STRATEGY
Portugal
Agenda

Outlook 2009
18
19
Banif. Our business model in on-shore PB
BANIF “Best Private Bank in Spain”
in 2004, 2005, 2006 and 2007 Euromoney Awards
2004 h 2005 h 2006 h 2007
Allfunds Bank “Best world funds Distributor 2003”
Institutional Investors Awards.
40%
Market
share in
domestic
private
banking in
Spain
43 years
of
experience
in private
banking.
€ 37,532
mill.
AUM*
30/06/07
100% of client 300,000 €
advisors
Minimum
have achieved
the European
Financial
Advisor
Certificate
(EFA).
client size
Average
over
1,000,000 €
20
Banif
Service model in constant
evolution
… as well as its value proposition
ASSET
MANAGEMENT
2004
Global
service
Asset
Managers
2000
1990´s
1970’s
Wealth
management
2000
WEALTH
MANAGEMENT
Equity
Brokers
International
Private Banking
2007
Portfolio management
Brokerage
Family Family
Offices Off.
Comercial Banks’
Private Banking
Units
BANKING
OPERATIONS
FINANCING
21
Banif. An excellent track-record
Profit before taxes
Gross operating income
Mill. euros
Mill. euros
x2
94
2003
136
111
2005
2006
67
28
21
H1'06 H1'07
2003
2004
2005
2006
Bill. euros
2004
55%
2005
50%
2006
H1'06 H1'07
Assets under management*
74%
62%
+54%
43
33
Cost to income ratio
2003
3
42
118
85
2004
X
+38%
184
+33%
x2
47%
H1'07
16.3
19.2
2003
2004
33.9
28.2
24.8
2005
37.5
2006
H1'06 H1´07
International Private Banking: Our offshore model
Mission: “to become the Bank of reference in
Latin American private banking”

In 2005, third best off-shore bank in Latam

In 2006/07, among the top five biggest offshore
private banks in Latin America (AUM)
More than
20,000
clients
in LatAm
20 years
of
experience
in private
banking.
USD
32,668
mill.
AUM*
30/06/07
2005: Top 3 Off Shore
Bank in Latin America
100% of
Private
bankers have
500,000 USD
Minimum
client size
or will have
achieved the
EFA
Certificate
Average over
USD 1.5 MM
22
23
International Private Banking
Main levers

Integrated Model: Commercial,
Centres, Products

A sole commercial business line
independently of the booking centre

A business model focused on
both, organic an inorganic growth

Highest compliance procedures

High value added product
differentiation: hedge funds and
wealth management

Steady organic
growth

Efficient portfolio
integration
24
International Private Banking. An excellent track-record
Profit before taxes
Gross operating income
Mill. US$
Mill. US$
338
+72%
275
239
X
+24%
196
2.5
+25%
158
196
165
204
125
124
99
80
2003
2004
2005
2006
H1'06 H1'07
2003
Cost to income ratio
2005
2006
Bill. US$
46%
43%
41%
2005
2006
H1'07
H1'07
+25%
+ 53%
40%
19.6
2004
H1'06
Assets under management*
55%
2003
2004
2003
30.0
22.5
23.9
2004
2005
2006
32.7
26.1
H1'06 H1'07
25
Italy. Building from scratch
Fumagalli Soldan acquired in April 2007. Today:
HHRR
Business
model

Products

Business
intelligence

Top management and first wave of private bankers onboard
Career plan already in place
Business and compliance processes
Brand and image
Branch layout
Complete range of banking and investment products
Open architecture through All Funds Bank
Leveraging on Global teams
CRIS in place
Local intranet working
Client statements
26
UK. Transforming the business
Develop the current Administration Business of James Hay, Cater
Allen and Abbey Sharedealing into a Private Banking Business
focused on the introducer Channel in two phases:
Phase 1: Transformation & Consolidation

From an administration service and
banking product provider to a Private
Bank

Three companies and brands: single
management and strategy.

Leverage distribution through Introducers,
completing the offer.

Growing in clients, balances and margin.

Estimated duration of two years.
Phase 2: Platform for Growth

Merger and single brand

Reinforce the Introducer channel.

Branch network to provide a higher
service level to Introducers.

Complete range of services and
products.

Estimated duration of
implementation of three years.
27
UK. Transforming the business
From low value to full service

HHRR

Business
model

Products

Business
intelligence

Reinforce HQ with teams of specialists
Adapting the Career and training plan
Hiring “private bankers for intermediaries”
Adapting the onshore business model to UK intermediaries
Brand and image
Branch layout
Complete range of banking and investment products
Open architecture through All Funds Bank
Drawing support from Global teams
CRIS for intermediaries
Integration of IT processes with Partenón and CRIS
28
Latin America private banks
Different situation depending on the country:

HHRR

Business
model

Products

Business
intelligence

Implementation of Career plan and
Training programs
New hiring ...
Commercial setup,
Definition of Service levels
Branch network layout...
Completion of product range
All Funds Bank connection
Levering on Global teams
CRIS interface to Altair
Local/regional intranet implementation
Agenda

Outlook 2009
29
30
The division will be fully integrated in 2009
2007
1
2
2008
2009
Q4’07: Start up
of Division
Q4’07 Italy
fully operative
3
Transforming the UK business
4
5
Adaptating and implementing the
business model to each Latam Bank
Integrated Division
reporting
In summary
An operation with a solid strategic rationale:
•

Strong business know-how

Markets we know well

Where we can generate more value
– With a more integrated approach to business
– Improving quality of service
– Taking advantage of our local presence
– Growing the business
Our ambition is to achieve a CAGR (2006-09):
AUM*:
+18%
PBT:
+20%
31