Business Priorities and Profitability Strategy in Latin America
Drivers behind our targeted profitability improvement:
top line growth, operational efficiency & capital allocation
Operational levers² to enhance underlying ROTE (%)
15-14%
Key expected drivers¹
O NII and volumes growing at
mid-single digit
● Fee income above volumes
12.1%
☐
14-13%
2018
Reweight
towards
LatAm
US
profitability
Efficiencies
in Europe
Capital
efficiency
Rest of
businesses &
Capital Medium-
Interest Medium-
retention
BAU
improvement growth and
for organic
term
rates
sensitivity
term
Upper
regulatory
range
Lower
range
headwinds
Santander
(1) In constant €
(2) Graph scale for illustrative purposes only
Capital
Efficiency
COR
Costs
Revenues
BAU cost control
c.€1.2 Bn efficiencies (o/w
c.€1 Bn in Europe)
°
Cost of credit at lows
LatAm increasing its weight
Minimum return thresholds
across segments
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