Santander to Raise Payout Policy to 50% From 40% in Next Three Years
28 February 2023 - 6:53PM
Dow Jones News
By Ed Frankl
Banco Santander SA said Tuesday that it would boost the
proportion of profit distributed to shareholders to 50% in the next
three years from 40% in 2022 through both cash dividends and share
buybacks in new targets that include increasing customers by
25%.
Ahead of an investor day in London, the Spanish bank said it
aims to add 40 million customers to reach 200 million by 2025,
which would boost revenue growth by around 7%-8% a year in constant
euros.
The company said it would target a return on tangible equity--a
measure of shareholder returns--of 15%-17% in the three years to
2025.
Santander said at its fourth-quarter results it would target
ROTE of more than 15% in 2023.
The bank, Spain's largest by market capitalization, also said it
would deliver double-digit average annual growth in tangible net
asset value per share plus dividend in the period.
In addition, it said it aimed to keep its common equity Tier 1
ratio, which gauges a bank's financial strength, above 12%, as at
the end of 2022.
As part of its 2022 remuneration, Santander said it would launch
a new share-buyback program of 921 million euros ($977.2 million)
taking its full-year buyback pot to EUR1.9 billion.
The company added it would declare a final dividend for the year
of 5.95 European cents a share, making a full-year dividend of
EUR11.78, up 18% on year.
The buyback plus dividend made a payout ratio of around 40% of
the consolidated underlying profit in 2022, it said.
Write to Ed Frankl at edward.frankl@wsj.com
(END) Dow Jones Newswires
February 28, 2023 02:38 ET (07:38 GMT)
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