Annual Report 2007 - Santander

GLOBAL WHOLESALE BANKINGGLOBAL BUSINESSESSANTANDER GLOBAL BANKING & MARKETS’ PROFITBEFORE TAXES OF EUR 1,830 MILLION WAS 28.4%HIGHER THAN IN 2006, DESPITE AN ADVERSEMARKET ENVIRONMENTOf note was the strong growth in customer business(77% of the Division’s revenue)The Bank’s zeroposition in creditderivatives affectedby the financialturmoil and a strictrisk policy meant theimpact of theliquidity crisis wasminimalSantander Global Banking & Marketsoffers products and services to largecompanies, institutional investors andinternational financial institutions. Itssophisticated and innovative solutionscover all the financing, investment andhedging needs of its customers, throughspecialised units in Spain and 20 othercountries.Santander Global Banking & Marketshas teams that operate internationally andglobal processes and infrastructure forbusiness, human resources and technology.Activity revolves around the followingsix elements:Corporate and Investment Banking(CIB), which integrates coverage, at theglobal level, of financial institutions andlarge corporations, as well as teams forMergers and Acquisitions, Asset andCapital Structuring.Global Transaction Banking (GTB),which embraces Cash Management andTrade and basic financing services forinstitutions and companies with aninternational presence.Credit Markets, which includes all theorigination units, risk management anddistribution of all structured credit anddebt products.Rates, which covers all tradingactivities in financial markets involvinginterest rates and exchange rates.Equity, which groups all the equities,Equity Derivatives and Commodities, EquityCapital Markets, Organised Markets,Custody, Short-Term Markets and CashEquities businesses.Proprietary trading, which managesthe Group’s short- and long-termdiscretionary positions in the various fixedincomeand equity markets.BUSINESS IN 2007Santander Global Banking & Marketsconducted its business in 2007 in a highlyvolatile market environment. However, theBank’s zero position in credit derivativesaffected by the crisis and a strict policy ofrisks meant that it was hardly affected bythe liquidity crisis, unlike otherinternational investment banks.Profit before taxes notched up a newrecord of EUR 1,830 million, 28.4% morethan in 2006. Revenues have more thandoubled in three years.Santander Global Banking & Marketsparticipated in the main corporatetransactions in Spain and Latin America in2007. Santander always applies strict riskdistribution criteria in these operations bysyndicating the loans granted, thereby notjeopardising the Bank’s balance sheet.30