Annual report 2009 - Santander

32BanestoBanesto concentrates on retail banking with individualcustomers, SMEs and companies, and together they accountfor 84% of the bank’s gross income. Its more than 2.5 millioncustomers are tended to in 1,773 branches and through itsmulti channel platform.The online bank ibanesto has more than 125,000 customersand in 2009 was the leader in capturing funds in direct bankingin Spain.Despite the very complex domestic environment, Banesto metits goals in 2009 in results, efficiency, quality of risk and capital,and improved its competitive position in Spain in this part ofthe cycle.• 348,000 new individual customers and 82,000 companiesand SMEs were captured.• The degree of product linkage of individual customerscontinued to improve (average of 4.6 per customer). In 2009,48% of customers had their payroll cheques paid into theiraccounts in Banesto.• The non-performing loan ratio was 2.97%, almost half theaverage ratio of the Spanish banking sector.Banesto contributed EUR 738 million to the Group profit, 0.8%more than in 2008, while strengthening the balance sheet (corecapital ratio of 7.7%).PortugalSantander Totta is the leading private sector bank in Portugalby profits, the most profitable and the most efficient (ROE of25.4% and efficiency ratio of 42.8%). It also has the highestcredit rating of Portuguese banks. These solid ratios underscorethe strategy of management with revenue growth, controlledcosts and active management of risks and recoveries.Its business model is customer-focused and provides the bestsolutions for the return on savings. The campaigns to attractfunds started in 2008 were continued and new ones launched,“Super Conta Ordenado” and “Poupanca Cresce Mais.”In an environment of a sharp slowdown in lending, SantanderTotta combined a selective credit policy with support for thePortuguese business sector. Lending to the business segmentgrew 9% and to medium-sized companies 3%.Net interest income increased 5.7% and combined withcontained costs led to attributable profit of EUR 531 million,0.1% more than in 2008.Santander Totta obtained the three most prestigious prizes forbanking in 2009: Best Bank in Portugal from Euromoney, Bankof the Year from The Banker and “Melhor Grande Banco enPortugal” from Exame.Rating agencies held their rating of Banesto at AA, the highestamong Spanish banks.For the second year running, Banesto was named Best Bank inSpain by the magazine Euromoney..Annual Report 2009