Banco Santander SA
SAN,
stated Tuesday that it might enhance the proportion of revenue distributed to shareholders to 50% within the subsequent three years from 40% in 2022 by each money dividends and share buybacks in new targets that embrace rising clients by 25%.
Forward of an investor day in London, the Spanish financial institution stated it goals so as to add 40 million clients to achieve 200 million by 2025, which might enhance income progress by round 7%-8% a 12 months in fixed euros.
The corporate stated it might goal a return on tangible fairness–a measure of shareholder returns–of 15%-17% within the three years to 2025.
Santander stated at its fourth-quarter outcomes it might goal ROTE of greater than 15% in 2023.
The financial institution, Spain’s largest by market capitalization, additionally stated it might ship double-digit common annual progress in tangible internet asset worth per share plus dividend within the interval.
As well as, it stated it aimed to maintain its frequent fairness Tier 1 ratio, which gauges a financial institution’s monetary energy, above 12%, as on the finish of 2022.
As a part of its 2022 remuneration, Santander stated it might launch a brand new share-buyback program of 921 million euros ($977.2 million) taking its full-year buyback pot to EUR1.9 billion.
The corporate added it might declare a ultimate dividend for the 12 months of 5.95 European cents a share, making a full-year dividend of EUR11.78, up 18% on 12 months.
The buyback plus dividend made a payout ratio of round 40% of the consolidated underlying revenue in 2022, it stated.
Write to Ed Frankl at edward.frankl@wsj.com
