July 15, 2025 • 9 mins
Banco Santander Executive Chair Ana Botin says she sees "tremendous opportunity" in the US market. Speaking with Sonali Basak on "Bloomberg Markets," Botin discusses the state of the US consumer, what she sees as upside potential in Europe and the outlook for stablecoin adoption.
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Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news. Speaking of banks, it's
a beautiful day to talk about banking. In recent months,
Santander has overtaken UBS to become the largest bank in
continental Europe, but it's also doubling down in the United
States as well, where it has a huge presence with
open Bank joining us now on abouteen, Executive chair of
(00:25):
Santander open Bank. What an interesting moment to talk about
interest rates in banking as well, because you're offering north
to four percent and it's among the most attractive rates
in the industry. What does this mean in terms of
your ambition to pull more money in after you've crossed
the five billion dollar.
Speaker 2 (00:42):
Threshold expected to be here. Thanks for inviting me. And
by the way, I try to open a few open
Bank accounts in the makeup room, so I'll come back
and check soon. So open Bank is a major step
in our US strategy. Is the perfect example of our
platform goals where we're building once across the group and
(01:07):
it's had a fantastic customer reception. You know, we're one
hundred and fifty thousand customers, over five billion in deposits.
And what matter is is that this is great for
our shareholders too, because it's lowering our cost of funds
allows us to grow faster in our auto landing business.
So it's you know, great for our customers, great for
our shareholders.
Speaker 1 (01:24):
What does it mean for your broader strategy in the
United States and the ambition that is here today?
Speaker 2 (01:30):
So US is a core strategic market for Santander. We
see a huge opportunity for profitable organic growth and this
is really important. It has been top three in value
creation over the last decade for our shareholders and euros
and very importantly, we are focusing on the businesses where
we have a competitive advantage and that bring network effects.
(01:52):
So we see again tremendous opportunity in the United States.
Speaker 1 (01:56):
Can any of that be accomplished through M and A
or do you think that mostly will be accomplished through
organic growth.
Speaker 2 (02:02):
Our aim, as as we have said to shareholders, is
to achieve fifteen percent our OT adjusted at twelve percent
in the United States this year. We will get there
and very importantly, Santan that as a group this year
will deliver return on tangible equity or just mentioning that
of sixteen and a half close to seventeen percent, which
is in gold in well, you know, it would be
(02:23):
the third of the major banks. The big banks in
the US would be number two or three, I believe.
Speaker 1 (02:28):
So what does this mean in terms of how you
want to get there? What do you think are going
to be the biggest profitability lines? And does any of
the US broader strategy from the Trump administration get in
the way given the concerns about the macro environment.
Speaker 2 (02:42):
Those are like five questions FINALI so let me just
first start how we will do it? So for us,
you know, we set out in twenty nineteen to become
an open financial services platform and very importantly to do
things in a way that is simple, personal, unfair for
our customers. And that is what we now have embodied
in transformation, which is a structural shift in how we operate,
(03:04):
so much lower cost to serve, which benefits customers and
delivers great returns. A great example is our cost income.
You know, again, the top three banks in this country
are around I believe sixty percent. The comparable cost income
for US is forty four percent. So we are as
competitive or better than most of the banks in the
United States. And this is great for our customers. And
(03:25):
one transformation is the way we get there.
Speaker 1 (03:28):
And the second part of the question was really about
the broader landscape here. With so much focus on the
US consumer, there is a lot of concern of whether
the US consumer is going to feel the pressure of
the terror strategy. Do you share those concerns.
Speaker 2 (03:41):
So we serve about five million consumers in the United
States and the headline is very clear. The US consumer
is resilient and the behavior is as good as we
expected this year. So there is a normalization of cost
of credit vis a VI twenty nineteen, but more or
less aligned with twenty nineteen, and what we are seeing
is pretty good. Now, if you think about sentiment, that's
(04:04):
another thing. And of course tariffs brings greater uncertainty, and
so there is a high probability that you will see
consumers and businesses, you know, getting weaker in the next
few months. But as of today, US consumer very resilient.
Speaker 1 (04:20):
Over and over we hear about investors starting to get
somewhat worried about US exceptionalism. Do you think that the
US is going to still be the place where capital
flows to the most.
Speaker 2 (04:32):
So, you know, I'd like to answer that question in
two levels. You know, one is US has grown much
more than the rest of the world, especially Europe, over
the last decade. What happens from here onwards, it's a
relative some game, right markets, you measure one against the other.
I think the opportunity in Europe today is greater. However,
(04:54):
we SANTANDERA deeply committed and we will continue to allocate
more organic capital to the United States.
Speaker 1 (05:00):
Now, I want to read you a quote recently from
Jamie Diamond, who spoke in Ireland saying that the EU
in particular has a huge problem at the moment. He
says that Europe has gone from ninety percent US GDP
to sixty five percent over the last ten to five years,
ten to fifteen years. That's not good. He said, you're losing.
What do you have to say to Jamie Diamond.
Speaker 2 (05:22):
So most of the time I agree with Jamie, he's
done a great job. But in this case I don't agree,
and I think in Europe the opportunity is huge and
there's only upside right now. Europe has strong fundamentals. You
know that to GDP is better strong institutions, so strong fundamentals. Second,
(05:43):
not all of Europe is the same same way that
Texas is not the same as California or Montana. Right,
Southern Europe today has higher growth than most of the
United States, with very great opportunities to grow, but last
and not least. You know, in terms of relative valuation,
if you look at banks, you know we have an
rot year as a return of close to seventeen percent.
(06:05):
We're treading at eight times earnings, whereas the top three
banks in the United States are trading with similar average
returns at twelve to fourteen. So I think this shows
why there is a big opportunity to invest in Europe,
and I believe that is something which you know, it's
not just the banking sector, it's in other sectors. Just
need to choose your country, your sector, and your company
(06:29):
the right one.
Speaker 1 (06:30):
I want to get your view on something large that's
happening in the United States right now, because I know
you've been thinking about how technology is going to change
the business. It's the stable coin legislation that is close
to passing. How is something there thinking about stable coins
and how you might adopt it in the future if
you will adopt it.
Speaker 2 (06:47):
So, we don't see stable gone as a revolution. We
see it more as an evolution, and we believe that
it's critically important that you have responsible players and that
it's regulated the right way, as I believe it will
happen here in it United States. You need responsible actors
like banks that bring compliance, trust and scale, and so
(07:08):
I do think it has benefits in terms of being
globally interoperable, you know, fast efficient, you know, bank rails
actually can get you there. Also, like if you use
how Global Payments API, but it's only now sunkander countries.
This is global, So I do think it's you know,
there is an opportunity. However, it is in new currency,
(07:30):
and so you have to make sure that you understand
the risks. It is in new currency and has the
risks of a currency.
Speaker 1 (07:36):
What are the biggest risks? We hear time and time
again that because stable coins have the potential to hold
so much by way of you as treasuries, that there
is a potential as as market grows over time that
it could create some sort of systemic risk. Do you
worry about that?
Speaker 2 (07:51):
Well, right now it's pretty small, so I don't think
that's a systemic risk at this time. I do think
if it grows, it's important that you're in the hands
of again trusted institutions that are compliant under standard risks
unmanage the risks appropriately.
Speaker 1 (08:07):
Now before I let you go, Also, I want to
get an update because you made a lot of news,
A lot of attention was drawn when you had hired
teams over from Credit Suite to build up your investment
banking franchise as well. Where does this fit into the
broader strategy of Santander.
Speaker 2 (08:21):
Well, as I was saying before, one transformation is the
way that Santander is delivering on the open financial services platform,
and the corporate bank was one of the first that
we started to transform. The corporate bank at Santander has
twenty percent returns. It is serving our customers in our footprint,
and the team that we have brought in New York
is helping us actually take advantage of those corporate relationships
(08:44):
and give them access to the deepest market in the world,
which is the US capital market. So it's a win win,
It leverages our network and it's delivering great profitability.
Speaker 1 (08:55):
How can US clients expect you to be using technology
more as you grow the bank in the United States?
Speaker 2 (09:02):
So again, part of the one transformation is open bank.
Open bank is built on our own tech, our own platform.
It's scales. We have the biggest Open Bank is today
the biggest digital bank in Europe. It's up and running
in Germany, in Iberia, in Mexico and the United States,
and we believe that this will again be a big
value add to US consumers. And it's only the first step.
(09:25):
We have more products coming in the next twelve months.
You will be able to bank with open Bank all
your basic banking needs.
Speaker 1 (09:32):
Anna Bottein, Executive Chair of san Tandeerra, thank you so
much for joining us while you are here in town.
Of course, a lot of changes happening and new products
being launched. We will keep an eye on all of that.
Bloomberg Audio Studios, podcasts, radio news. Speaking of banks, it's
a beautiful day to talk about banking. In recent months,
Santander has overtaken UBS to become the largest bank in
continental Europe, but it's also doubling down in the United
States as well, where it has a huge presence with
open Bank joining us now on abouteen, Executive chair of
(00:25):
Santander open Bank. What an interesting moment to talk about
interest rates in banking as well, because you're offering north
to four percent and it's among the most attractive rates
in the industry. What does this mean in terms of
your ambition to pull more money in after you've crossed
the five billion dollar.
Speaker 2 (00:42):
Threshold expected to be here. Thanks for inviting me. And
by the way, I try to open a few open
Bank accounts in the makeup room, so I'll come back
and check soon. So open Bank is a major step
in our US strategy. Is the perfect example of our
platform goals where we're building once across the group and
(01:07):
it's had a fantastic customer reception. You know, we're one
hundred and fifty thousand customers, over five billion in deposits.
And what matter is is that this is great for
our shareholders too, because it's lowering our cost of funds
allows us to grow faster in our auto landing business.
So it's you know, great for our customers, great for
our shareholders.
Speaker 1 (01:24):
What does it mean for your broader strategy in the
United States and the ambition that is here today?
Speaker 2 (01:30):
So US is a core strategic market for Santander. We
see a huge opportunity for profitable organic growth and this
is really important. It has been top three in value
creation over the last decade for our shareholders and euros
and very importantly, we are focusing on the businesses where
we have a competitive advantage and that bring network effects.
(01:52):
So we see again tremendous opportunity in the United States.
Speaker 1 (01:56):
Can any of that be accomplished through M and A
or do you think that mostly will be accomplished through
organic growth.
Speaker 2 (02:02):
Our aim, as as we have said to shareholders, is
to achieve fifteen percent our OT adjusted at twelve percent
in the United States this year. We will get there
and very importantly, Santan that as a group this year
will deliver return on tangible equity or just mentioning that
of sixteen and a half close to seventeen percent, which
is in gold in well, you know, it would be
(02:23):
the third of the major banks. The big banks in
the US would be number two or three, I believe.
Speaker 1 (02:28):
So what does this mean in terms of how you
want to get there? What do you think are going
to be the biggest profitability lines? And does any of
the US broader strategy from the Trump administration get in
the way given the concerns about the macro environment.
Speaker 2 (02:42):
Those are like five questions FINALI so let me just
first start how we will do it? So for us,
you know, we set out in twenty nineteen to become
an open financial services platform and very importantly to do
things in a way that is simple, personal, unfair for
our customers. And that is what we now have embodied
in transformation, which is a structural shift in how we operate,
(03:04):
so much lower cost to serve, which benefits customers and
delivers great returns. A great example is our cost income.
You know, again, the top three banks in this country
are around I believe sixty percent. The comparable cost income
for US is forty four percent. So we are as
competitive or better than most of the banks in the
United States. And this is great for our customers. And
(03:25):
one transformation is the way we get there.
Speaker 1 (03:28):
And the second part of the question was really about
the broader landscape here. With so much focus on the
US consumer, there is a lot of concern of whether
the US consumer is going to feel the pressure of
the terror strategy. Do you share those concerns.
Speaker 2 (03:41):
So we serve about five million consumers in the United
States and the headline is very clear. The US consumer
is resilient and the behavior is as good as we
expected this year. So there is a normalization of cost
of credit vis a VI twenty nineteen, but more or
less aligned with twenty nineteen, and what we are seeing
is pretty good. Now, if you think about sentiment, that's
(04:04):
another thing. And of course tariffs brings greater uncertainty, and
so there is a high probability that you will see
consumers and businesses, you know, getting weaker in the next
few months. But as of today, US consumer very resilient.
Speaker 1 (04:20):
Over and over we hear about investors starting to get
somewhat worried about US exceptionalism. Do you think that the
US is going to still be the place where capital
flows to the most.
Speaker 2 (04:32):
So, you know, I'd like to answer that question in
two levels. You know, one is US has grown much
more than the rest of the world, especially Europe, over
the last decade. What happens from here onwards, it's a
relative some game, right markets, you measure one against the other.
I think the opportunity in Europe today is greater. However,
(04:54):
we SANTANDERA deeply committed and we will continue to allocate
more organic capital to the United States.
Speaker 1 (05:00):
Now, I want to read you a quote recently from
Jamie Diamond, who spoke in Ireland saying that the EU
in particular has a huge problem at the moment. He
says that Europe has gone from ninety percent US GDP
to sixty five percent over the last ten to five years,
ten to fifteen years. That's not good. He said, you're losing.
What do you have to say to Jamie Diamond.
Speaker 2 (05:22):
So most of the time I agree with Jamie, he's
done a great job. But in this case I don't agree,
and I think in Europe the opportunity is huge and
there's only upside right now. Europe has strong fundamentals. You
know that to GDP is better strong institutions, so strong fundamentals. Second,
(05:43):
not all of Europe is the same same way that
Texas is not the same as California or Montana. Right,
Southern Europe today has higher growth than most of the
United States, with very great opportunities to grow, but last
and not least. You know, in terms of relative valuation,
if you look at banks, you know we have an
rot year as a return of close to seventeen percent.
(06:05):
We're treading at eight times earnings, whereas the top three
banks in the United States are trading with similar average
returns at twelve to fourteen. So I think this shows
why there is a big opportunity to invest in Europe,
and I believe that is something which you know, it's
not just the banking sector, it's in other sectors. Just
need to choose your country, your sector, and your company
(06:29):
the right one.
Speaker 1 (06:30):
I want to get your view on something large that's
happening in the United States right now, because I know
you've been thinking about how technology is going to change
the business. It's the stable coin legislation that is close
to passing. How is something there thinking about stable coins
and how you might adopt it in the future if
you will adopt it.
Speaker 2 (06:47):
So, we don't see stable gone as a revolution. We
see it more as an evolution, and we believe that
it's critically important that you have responsible players and that
it's regulated the right way, as I believe it will
happen here in it United States. You need responsible actors
like banks that bring compliance, trust and scale, and so
(07:08):
I do think it has benefits in terms of being
globally interoperable, you know, fast efficient, you know, bank rails
actually can get you there. Also, like if you use
how Global Payments API, but it's only now sunkander countries.
This is global, So I do think it's you know,
there is an opportunity. However, it is in new currency,
(07:30):
and so you have to make sure that you understand
the risks. It is in new currency and has the
risks of a currency.
Speaker 1 (07:36):
What are the biggest risks? We hear time and time
again that because stable coins have the potential to hold
so much by way of you as treasuries, that there
is a potential as as market grows over time that
it could create some sort of systemic risk. Do you
worry about that?
Speaker 2 (07:51):
Well, right now it's pretty small, so I don't think
that's a systemic risk at this time. I do think
if it grows, it's important that you're in the hands
of again trusted institutions that are compliant under standard risks
unmanage the risks appropriately.
Speaker 1 (08:07):
Now before I let you go, Also, I want to
get an update because you made a lot of news,
A lot of attention was drawn when you had hired
teams over from Credit Suite to build up your investment
banking franchise as well. Where does this fit into the
broader strategy of Santander.
Speaker 2 (08:21):
Well, as I was saying before, one transformation is the
way that Santander is delivering on the open financial services platform,
and the corporate bank was one of the first that
we started to transform. The corporate bank at Santander has
twenty percent returns. It is serving our customers in our footprint,
and the team that we have brought in New York
is helping us actually take advantage of those corporate relationships
(08:44):
and give them access to the deepest market in the world,
which is the US capital market. So it's a win win,
It leverages our network and it's delivering great profitability.
Speaker 1 (08:55):
How can US clients expect you to be using technology
more as you grow the bank in the United States?
Speaker 2 (09:02):
So again, part of the one transformation is open bank.
Open bank is built on our own tech, our own platform.
It's scales. We have the biggest Open Bank is today
the biggest digital bank in Europe. It's up and running
in Germany, in Iberia, in Mexico and the United States,
and we believe that this will again be a big
value add to US consumers. And it's only the first step.
(09:25):
We have more products coming in the next twelve months.
You will be able to bank with open Bank all
your basic banking needs.
Speaker 1 (09:32):
Anna Bottein, Executive Chair of san Tandeerra, thank you so
much for joining us while you are here in town.
Of course, a lot of changes happening and new products
being launched. We will keep an eye on all of that.
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