Santander increases its three-year strategy’s revenue target to 15-17% and payout to 50%.
Reuters: MADRID The Spanish bank Santander (BME:SAN) announced on Tuesday that it planned to increase its return on tangible equity (ROTE) ratio for the years 2023–2025 from its current level of 13.37% to between 15%–17% as a result of higher revenue and interest rates in some of its key European and South American markets, including Spain.
Additionally, the lender disclosed a new dividend pay-out policy for the period of 50% of consolidated ordinary profit, up from the previous policy of 40%, in a show to the Spanish supervisor.
A final cash dividend of 0.0595 euros per share was suggested by Santander. As a consequence, the 2022 total cash dividend per share will increase to 0.1780 euros, an 18% increase from the 2021 total. After receiving regulatory approval, it also unveiled a 921 million euro ($974.79 million) additional share buyback programme.
According to 2022 figures, the bank would pay its shareholders 3.84 billion euros, divided equally between a cash dividend and share buybacks.
($1 equals 0.9448 euros).
