SANTANDER BANK

Santander Bank

Santander Bank

Introduction

This study is related to Santander Bank which is a holding company; the company provides a variety of financial products. The services and products of Santander Bank include retail banking business that entails all consumer banking segments; wholesale banking segment; as well as insurance segment and asset management segment. The main operations of Santander Bank are in Spain, the United Kingdom, Germany, Latin America, Portugal and Italy. The total customer deposits of Santander Bank as of Dec 31 2011 amounted to Euro 705346000000 and the total assets were amounted to Euro 1251526000000.

Origin of Santander Bank and Corporate Culture

Santander Bank was established as Banco Santander, in 1857, to support trade between the port of Santander in the Latin America and North of Spain. In the early 1900's, three banks were established in Spain that are, Banco Espanol de Credito, Banco Hispanoamericano and Central which got merged with each other to form a group.

The corporate culture of Santander Bank has been positive as the company has been entered into various agreements with other banks. In June 2011, Santander Bank signed a preliminary agreement to acquire Creditel, a Uruguay-based provider of financial services, for an estimated value of about EUR10.4 million. In October 2011, Santander Bank decreased its stake in Santander Consumer USA by selling 35 percent Stake in the American Unit for $1.15 billion. In the similar month, the bank reported that Zurich Financial Services AG purchased Argentinean Insurance Operations and Brazilian Santander Bank.

Strategic Drift or Change

Keeping in view of Santander Bank's history, it can be said that the Santander Bank has been subject to strategic drift or has been involved in significant strategic change. The reason of this statement is that Santander Bank has changed its strategies over the past as the bank is involved in various mergers and acquisition. In 2005 Santander Bank acquired Norway's Bankia, in 2006 Santander Bank acquired Island Finance and in the similar year it also acquired US based Sovereign Bancorp and many other many other strategic drift or changes taken by Santander Bank.

Market Conditions of Banking Industry

Materials analysis can detect positive and negative trends in the development of the bank's losses, unused reserves, shortcomings and failures in planning decision-making in banking industry. The basis of the synthesis and analysis of the Bank's balance sheet analysis is conducted in a certain perspective in view of banking industry market conditions. The main areas of analysis are;

Assessment of the dynamics of aggregate indicators of the bank's assets, deposits, equity loan profits. The assessment is carried out in relation to those of other banks, which allows determining the rating and the development strategy of the bank.

Evaluation of the resource base, volume, structure and main trends of its parts. The analysis is based on the classification of certain articles of the Bank's resources, the calculation of structural indicators. This analysis is used to develop the bank's deposit policy.

Assessment of the bank's assets. The analysis is based on the classification of bank assets, the calculation of the structural ...