Analysis of Financial and Economic Condition of International Banking

ANALYSIS OF FINANCIAL
AND ECONOMIC
CONDITION OF
INTERNATIONAL
BANKING

TABLE OF CONTENTS
MAIN BODY...................................................................................................................................3
a. Comparing financial performance of subsidiary and parent company....................................3
b. Trends in GDP growth of Brazil and how it influences the financial performance of
subsidiary....................................................................................................................................5
c. Implication of Santander’s entry strategy into UK in 2004 along with current competitive
conditions in UK affecting risk taking in Santander...................................................................7
REFERENCES..............................................................................................................................10

MAIN BODY
a. Comparing financial performance of subsidiary and parent company
Banco Santander
Brazil Santander UK
Particulars 2008 2018 2008(in million) 2018 (in million)
Profitability ratio
Operating profit 1010011 15909771 1094 1545
Total assets 294189847 72386500 231742 283372
Current liability 3025207 5043375 169630 202966
Capital employed 291164640 67343125 62112 80406
Return on capital
employed 0.35% 23.62% 1.76% 1.92%
Net profit 707445 12799918 819 1104
Net sales 5573378 49506959 3004 4534
Net profit ratio 12.69% 25.85% 27.26% 24.35%
Operating profit 1010011 15909771 1094 1545
Net sales 5573378 49506959 3004 4534
Operating prfit
ratio 18.12% 32.14% 36.42% 34.08%
Liquidity ratios
Current assets 1150737 3885189 60231 30623
Current liability 3025207 5043375 169630 202966
Current ratio 0.38 0.77 0.36 0.15