Sovereign sets sights on Fleet customers

BOSTON – The chief executive officer of Sovereign Bancorp Inc. said he wants to lure $1 billion worth of business away from FleetBoston Financial in the next two years, now that Fleet has been bought out by Bank of America Corp.

Sovereign CEO Jay Sidhu told the Boston Herald on Monday that when Charlotte, N.C.-based Bank of America completes its $47 billion purchase of Fleet to create the nation’s second largest bank, he expects job cuts and some customers looking for a smaller bank.

“When you become very big, it becomes difficult to treat the smaller customer as an individual,” he said.

Executives at Fleet and Bank of America have promised to keep disruptions and job losses at a minimum when the deal is completed, probably by the summer.

Analysts said Sidhu’s goals are realistic.

Philadelphia-based Sovereign, as well as other midsized New England-based banks, including Banknorth Group Inc. of Portland, Maine, and Citizen’s Bank of Providence, R.I., will aggressively pursue Fleet customers, said James Ackor, an analyst at RBC Capital Markets.

“The disruption … will provide opportunities to steal business away from Fleet and steal employees away from Fleet,” Ackor said. “I wouldn’t expect a huge windfall for companies like Sovereign and Banknorth, but every little bit helps.”

The loss of Fleet is a blow to Boston, which loses its last home-grown retail bank, Sidhu said.

Sidhu refused to comment on reports that Sovereign is the target of buyout efforts by The Royal Bank of Scotland or Barclays Plc.

Sovereign shares fell $1.01 on Monday to $22.64 on the New York Stock Exchange.