Spanish bank Banco Santander SA is looking to expand its investment bank, primarily by hiring senior investment bankers and bolstering its operations in the U.K. and U.S. While one of the world’s larger lenders, the bank is not traditionally seen as a big player in investment banking. However it is aiming to bring its U.K. and U.S. investment banking businesses up to the same strength as Brazil or Spain, its traditional hubs, according to a person familiar with the bank’s plans. The bank has also begun a review into its trading businesses in Madrid and London, the person added, with the aim of hiring more experienced staff. Santander also plans to launch a cash management service in continental Europe. While Santander is a strong provider in debt capital markets throughout Latin America, it rarely troubles the top thirty banks in terms of investment banking advisory revenues, according to data from Dealogic. In a presentation to investors on Wednesday, Jacques Ripoll, head of global corporate banking, said the bank aims to add “stronger coverage and sector knowledge with additional senior bankers.” Ana Botín, who succeeded her father Emilio as executivechairman following his death in September last year, previously attempted to build a major investment banking franchise at the bank. She hired 150 equities analysts in Asia in an attempt to build a global investment banking franchise. But the bank lost money in a number of it investment banking operations across Latin American and let go of the staff hired in Asia. Santander’s banking and markets unit is headed up by Mr. Ripoll. A former executive and equities banker at Societe Generale, Mr. Ripoll joined Santander in 2013 to run its U.K. investment bank. He was promoted to head of the wholesale arm at the beginning of this year. In July, Mr. Ripoll advised on the IPO of Ferrari, the thoroughbred Italian carmaker. Unlike its major European rivals, where investment banking revenue often accounts for a major portion of revenues, Santander’s wholesale banking unit is somewhat smaller. It posted a profit of €1.6 billion in 2014, up 16% year on year. This amounted to 20% of group profit. In comparison, BNP Paribas’s investment banking unit returned a profit of €2.5 billion over 2014, around 35% of group profit.
BNP Paribas is reportedly ﻿planning to expand its investment banking﻿ o﻿perations in the UK and the US﻿, through the hiring of more﻿ senior investment bankers. Unlike its European rivals, BNP Paribas's investment bank does not account for a major portion of revenue. The bank has also begun a review into its trading businesses in Madrid and London, with the aim of hiring more experienced staff. It also plans to launch a cash management service in continental Europe.