Santander announced the increase this Tuesday. profit percentage he will distribute shareholders between 40% from recent years 50% between 2023 and 2025. it’s a move expected implied by the market and already a few weeks ago by the head of the group, Ana Botín, that the group is trying to align itself with the strategy more usual than others industry and vice versa worse relative behavior bag. Payments to owners will be distributed in more or less equal parts between payment of: dividends in cash and take it back number of shares (increasing their value by reducing outstanding titles).
In addition, the business is new dividend EUR 0.595 per share for 2022 results (total of EUR 1,178 with the amount paid last year, one 18% more) and a new plan take it back value of shares 921 million euro. Thus, the shareholder’s total remuneration will be as follows: 3.842 million (About 40% of ordinary profit for 2022) is split between cash dividends (1,942 million) and share repurchases (1,900 million), representing an equivalent return of over 8%.
The bank made these announcements during its anniversary celebrations. investor day It’s in London, where it updated its main financial targets after overall reaching the targets set in 2019 for the three-year period ending last year. Therefore, the group now hopes to raise the bar. cost effectiveness tangible capital between 13-15% previous (received 13.37% in 2022) 15-17% and increase your rate competence (income and expense relationship, the better, the lower) 45.8% closed last year at 42% in 2025
It also aims to continue its existence. capital city above %12 to achieve “double-digit” annual average growth in total. book value material per share plus dividend per share. In the commercial space, the bank expects to win 40 million customers within three years until 200 millionassets (those with the most activities with the bank) will increase by 26 million to 125 million. This, he explained, will contribute to their increase. income around 7-8% (8-9% inclusive of commissions) year-on-year, higher than you would expect, regardless of exchange rate expenses (4-5%).
Santander also estimates a cost of risk (new provisions 1-1.1% in 2025, slightly above the 2022 level (0.99%), which indicates a certain credit forecast. deterioration in balance sheet quality after years of diminished guilt. You have also estimated the rate at which your assets will yield a return. above the cost of capital (the level required by investors) will increase from 80% to 85%.
“we have goals achieved Investor Day 2019 is to grow millions of customers and increase profitability while continuing to strengthen the balance sheet. These results competitive advantage representing a unique combination global and local scale In all the markets in which we operate, diversification and customer focus. “Today we are announcing plans to drive profitable growth by establishing a digital bank with branches managed and supported by Santander’s global network.”