Santander forthcoming investment of $250M into its banking division

In a move that sets it apart from other major banks, Santander has announced a significant expansion of its investment bank, hiring over 100 bankers this year, with the majority based in the United States and more than half coming from Credit Suisse.

This restructuring is part of Santander's strategic plan to focus on corporate banking and adding a fee business in areas like renewables and infrastructure. The bank aims to deepen client relationships by providing access to dollar markets, strategic advice, access to capital markets, and structured transactions.

Héctor Grisi, Santander's CEO, who previously spent 18 years at Credit Suisse, is reported to have recommended many of the bankers brought over from the collapsed Swiss lender. The new global retail and digital consumer banking division is a key part of this strategic shift.

Unlike other banks mentioned, Santander has not announced any recent job cuts in its investment bank. This expansion comes amid a sector-wide dealmaking slump among major banks, with other large players such as Goldman Sachs, JPMorgan Chase, TD's Cowen, BMO Capital Markets, PNC, and Ally Financial making cuts to their investment banking businesses this summer.

Santander's corporate and investment bank has grown from 3,500 to 8,000 staffers over the past seven years, with some of the increase due to internal reorganizations. The bank has allocated $250 million to expand its corporate and investment bank over the next two years.

The restructuring is aimed at positioning the bank closer to the goals it outlined at an investor day in February, including adding 40 million customers. Santander aims to increase its return on tangible equity to 15%-17% and achieve double-digit annual growth in tangible net asset value per share plus dividend per share by 2025.

The reported information comes from The Financial Times, Reuters, and Bloomberg. However, there is no information in the provided search results indicating who recommended employing more than 100 bankers from the collapsed Swiss bank Credit Suisse at Santander. The restructuring also includes the acquisition of retail licensing rights.

Ana Botín, Santander's Executive Chair, stated that the opportunity to grow in the U.S. was a logical choice for the bank. Santander's focus in expanding its investment bank is on hiring managing directors.

This strategic move by Santander could signal a shift in the banking industry, as it seeks to capitalize on opportunities in areas like renewables and infrastructure while other banks are scaling back their investment banking businesses.