Santander to cut up to 450 branches and 1,000 jobs in Spain

Banco Santander plans to close 450 branches in its Spanish home market in an attempt to bolster profitability and address the rapid shift towards internet and digital banking.

The euro zone’s largest bank by market value operates 3,467 branches in Spain, meaning it will cull about 13 per cent of its network. The closures will predominantly affect smaller outlets staffed by three or fewer employees. It remains unclear how many job losses will be involved in the overhaul, but Spanish media reports have suggested up to 1,000 workers could lose their jobs.

At least 350 of Santander’s remaining offices will be overhauled, to place more focus on “multichannel” advisory services rather than simple transactions.

Until the banking crisis of 2012, Spain was known as one of the most overbanked markets in western Europe.

Santander’s shares have lost almost 45 per cent of their value over the past year, in part over concerns relating to the economic crisis in Brazil – one of the bank’s most important markets. On Friday, its shares were almost unchanged, at €3.88.

In an attempt to win back investor confidence, Ana Botín, Santander’s chairwoman, announced last month the bank would raise its dividend by 5 per cent this year. The move follows a sharp cut in the lender’s dividend that was pushed through by Ms Botín last year. – (Copyright The Financial Times Limited 2016)