Banco Santander SA
SAN,
stated Tuesday that it will increase the proportion of revenue distributed to shareholders to 50% within the subsequent three years from 40% in 2022 by means of each money dividends and share buybacks in new targets that embody growing 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 succeed in 200 million by 2025, which might increase income progress by round 7%-8% a yr in fixed euros.
The corporate stated it will 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 will goal ROTE of greater than 15% in 2023.
The financial institution, Spain’s largest by market capitalization, additionally stated it will ship double-digit common annual progress in tangible web asset worth per share plus dividend within the interval.
As well as, it stated it aimed to maintain its widespread fairness Tier 1 ratio, which gauges a financial institution’s monetary power, above 12%, as on the finish of 2022.
As a part of its 2022 remuneration, Santander stated it will 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 will declare a last dividend for the yr of 5.95 European cents a share, making a full-year dividend of EUR11.78, up 18% on yr.
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