Annual report 2009 - Santander

38New headquarters of Grupo Santander Brazil in Sao PauloCapital increaseBanco Santander Brazil carried out a EUR 5,092 million capitalincrease with a new share offer in October. These new sharesbegan to be traded on the New York and Sao Paulo stockexchanges on October 7. The Lex column of the Financial Timescalled it the “operation of the year in the international financialsystem.”Attributable profitMillion euros1,7692,167+22.5%*After the capital increase, Banco Santander Brazil’s free float was16.4% and its market capitalisation of more than EUR 36,000million at the end of 2009 put it among the 30 largest banks inthe world on this basis.This operation reaffirmed the Group’s commitment to the Brazilianeconomy, its financial system and, in particular, the high potentialof the franchise from the integration of Santander Brazil andBanco Real.(*) +27,1% excluding the exchange-rate impact20082009Strategic plan and integrationThe capital increase was part of Santander’s strategic plan forBrazil for the next few years. The proceeds will be used to financethe bank’s growth in the country, improve its financing structureand strengthen its capital.The objective of increasing its market share will require significantinvestment in installed capacity such as the opening of 600 newbranches. Furthermore, the bank aims to win a greater share ofbusiness with SMEs, boost cross-selling of products and step uppenetration in insurance and cards. Banco Real will begin to adoptthe Santander brand during 2010.Efficiency%46.237.0-9.2 p.p.The integration process, begun at the end of 2008, is proceedingas scheduled. Unification of the support areas and of global andspecialist businesses was completed during 2009, except in someactivities still underway. The legal merger and unification ofemployees was also carried out and there are now common,basic operations that the customers of both banks can access inany branch, ATM or call centre.Programmes with common benefits and products were alsolaunched for the customers of both networks. Of note areSantander Master and Realmaster which combine two of themost successful features for customers of Santander and Real inoverdrafts: the 10 interest-free days a month of Banco Real andthe possibility of postponing half the monthly interest paymentsof Santander.CustomersMillions200821.0200922.42008 2009Annual Report 2009