Spanish lender Santander has confirmed recent speculations regarding its intentions to sell a stake in its asset management business.
"In response to recent press speculation, Banco Santander reports that it is exploring the possibility of incorporating investors to its asset management division although no agreement has been reached yet for any such investment," a statement released to the London Stock Exchange said.
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In early April, Santander announced plans of a stake sale in its AM unit, which manages approximately EUR153 billion (US$199 billion) of assets ranging from pension funds to real estate. Santander also cut down 724 jobs and pulled out of investment advice.
At the end of April, Santander was reported to be negotiating sale terms of a stake in its AM unit, with potential buyers, with the lender’s CEO, reportedly, saying the talks are in "early stages".
"Santander will inform the market as appropriate in case an agreement to implement such investment is reached," added the statement from the lender.
Santander’s global private banking unit reported attributable profit of EU41 million (US$53.6 million), 13.5% less year-on-year in the first quarter of 2013, with the drop coming about due to a lower net interest income as the other P&L items increased, particularly fee income. Total assets under management (AUM) stood at EUR107.5 billion (US$140.5 billion) at the end of March, 3% higher than the end of last year.
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