MADRID, Feb 24 (Reuters) – Santander’s executive president, Ana Botín, will promise a leaner bank, with greater cost reduction thanks to digitalization, as she tries to convince investors this Wednesday that focusing on expansion in strategic developed markets is the best path to growth, people familiar with the plans said.
Santander reached a $12.2 billion deal earlier this month to buy U.S. bank Webster, bolstering the United States’ position as one of its top three markets, along with Spain and the United Kingdom.
The acquisition, which follows a deal to buy Britain’s TSB last year, is a fundamental step towards fulfilling Botín’s long-standing promise to simplify the bank’s structure, investors and analysts told Reuters ahead of the three-year strategy update due at an investor meeting on Wednesday.
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Botín, who is part of the fourth generation of his family to head the bank, will also present the institution’s plans to increase its profitability index to above 20% by 2028, from the current 16.3%.
For decades, Santander’s diversification, covering ten main markets, protected the bank from economic recessions in specific regions, but left it vulnerable to currency devaluations, particularly in Latin America.
This also contained the appreciation of the bank’s shares. However, record profits and higher growth in markets like Spain have helped shares soar about 80% in the last year. Santander, now valued at almost 160 billion euros, has overtaken UBS as the biggest lender by market value in continental Europe.
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Unlike other European banks that are banking on ever-larger share buybacks, Santander has spent more than $15 billion on acquisitions since mid-2025 to boost growth and correct underperformance in parts of the sprawling bank.
‘She still has a long way to go, but… it’s a very strong starting point,’ said Filippo Alloatti, head of finance at Federated Hermes and an investor in Santander bonds. ‘They will become a serious player, not just someone flirting with the US.’
Despite the recent stock appreciation, investors remain cautious. Santander’s shares are traded at 1.56 times book value, a common indicator of the value that investors attribute to a bank. Although this index has improved and is above the average for European banks, it continues to be lower than that of some competitors.
A source familiar with Santander’s strategy told Reuters that the investor day will focus on reducing costs and increasing efficiency, calling it an ‘unfinished job’ as costs are unfavorable compared to Spanish rival BBVA.
