Spain's Banco Santander is in the process of merging its asset management and global private banking operations, with Javier Marin to head the new division. Marin is currently the head of private banking, while Joan David Grima, the current head of asset management, has announced he will retire.
Spain's largest bank by assets said Santander Asset Management had €111bn ($165bn) in assets under management as of September and generated net profit of €49m ($70m) in the first nine months of 2009, down 60% from the same period in 2008. Private banking generated €255m ($365m) in the first nine months, down 4.6%.
According to SRP data, Santander Asset Management has launched around 200 structured funds since 2005 with an overall estimated sales volume of €35.3bn, which were distributed by Banco Santander, Banesto and Santander's private bank Banif. On the other hand, SRP has registered up to 30 products marketed by Banif, mainly structured bonds and deposits, with an overall estimated sales volume of €1.01bn.
SRP data shows that Santander Asset Management and Banif are currently managing 92 live structured products in the Spanish market with an estimated sales volume of €12.5bn.
Both Santander businesses are leading players in both Spain and Latin America, but both have struggled recently. Santander Asset Management was hit with withdrawals following heavy losses on investments made by Santander's hedge fund unit in funds run by Bernard Madoff and the decision to freeze withdrawals from a Spanish real estate fund following the burst of the local housing market bubble. Banif has also been hit by the Lehman Brothers' demise. Back in September, law firm Jausas & Zunzunegui filed a court action against Banif on behalf of 34 clients that are claiming €3.5m compensation.
Santander had plans to sell the asset management division together with its insurance business in 2008, but shelved those plans after it failed to find a buyer.