At Banco Sabadell there is no time to lose. The new chief executive of the entity, César González-Bueno, who arrived unofficially in December from ING, has restructured the bank to overcome the credibility gap it is going through, which led him to try a merger, which was not closed , with BBVA at the end of last year.
In his first hours as CEO, already recognized by the European Central Bank (ECB), González-Bueno has presented the new organization whose “main axes are the greater focus on the customer and increased profitability”. In this context, the bank is structured into three large business units in Spain with very different characteristics: individuals, companies and corporate.
The chief executive believes that “this new organization will allow us to carry out our strategy with a focus on the customer and profitability. Each business is structured differently, because the needs and priorities of its customers are also different. With this remodeling, more than a third of the people who are part of the new top-level management team have acceded after internal promotion, unequivocal proof of the commitment to talent ”.
Among the changes is the departure of María José García Beato, head of the General Secretariat, who will be replaced by Gonzalo Barettino as of March 31. As of that date, García Beato will continue as a non-executive director of the entity.
To provide the business units with greater agility and autonomy, indicates Sabadell, each director will have responsibility for part of the corporate functions and capacities of the areas of Finance, Organization and Resources, Operations and Technology, Risks and Legal Advice. Likewise, each unit will be responsible for its income statement (income, expenses, provisions and capital consumption).
The international subsidiaries, TSB and Mexico, do not experience organizational changes and their strategy will continue to focus on accelerating their profitability path and increasing their contribution to the group. No sales process will be started in the near future.
Digitization in individual banking
The individuals unit “is reorganized to improve processes, as well as to adapt the offer of products and services to the needs of customers in an environment that has undergone a profound transformation.” For this reason, Sabadell ensures that “digitization will be a key element of support for the more than 3,500 professionals in the branch network.”
This division will be structured in product units, “in order to ensure greater proximity to the customer.” This business unit will also have a private banking address. Temporarily, César González-Bueno will be in charge of this unit until the next incorporation of his future manager.
The strong area will be the “Companies and Network” management, where the bank claims to hold a leadership position and generate a profitability of more than 10%. “The objective is to consolidate its position and increase the volume of business efficiently”, they point out and will have 4,000 employees to strengthen the relationship with customers.
Business banking is structured by segments, from freelancers to large companies. This unit, “the one with the greatest contribution to the bank’s profitability, will be directed by Carlos Ventura”, a man of the house, who will also be in charge of the entire commercial network.
Presentation of the new plan in May
Finally, the Corporate Banking division, “with adequate efficiency and profitability, is a line of business intensive in capital consumption, so the focus of the strategic plan will be on its management,” says the bank in a note. This direction will continue to be structured in customer units to serve and manage the relationship with large corporations, and will have transversal specialized product directions. These areas will also provide services and will be a reinforcement for Business Banking, which will have specific solutions for SMEs, which are increasingly demanding more sophisticated products.
Corporate Banking, which also covers the entire international part of this service section, will continue to be directed by José Nieto. The new strategic plan will be presented next May.
González-Bueno stated in the note: “It is an honor to run a bank with the prestige and history of Sabadell. I want to thank President Oliu for his confidence, which has been endorsed by the council and the regulator, and Jaime Guardiola for having helped me to get to know the bank. The team is excellent and the bank has an enviable culture ”.
For his part, the president of Banco Sabadell, Josep Oliu, highlighted: “The extensive experience and prestige that González-Bueno has in the sector and in the execution of transformation and digitization processes, which make César the ideal profile to lead this We are starting a new stage in Sabadell, in which we are going to focus on improving efficiency, increasing profitability and creating value for shareholders ”.
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