Santander lifts profitability goal to 15-17%, pay-out to 50% in 3-year strategy – NewsEverything Business

MADRID, Feb 28 (Reuters) – Spain’s Santander said on Tuesday it intends to raise its return on tangible equity ratio (ROTE) for the period 2023-2025 to between 15%-17% from a current 13.37% on the back of higher revenues and interest rates in some of its core markets in Europe, such as Spain, and in South America.

The lender also unveiled in a presentation to the Spanish supervisor a new dividend pay-out policy for the period of 50% of consolidated ordinary profit, compared to the previous policy of 40%.

Santander proposed a final cash dividend of 0.0595 euros per share. As a result, the total cash dividend per share for 2022 will rise to 0.1178 euros, a rise of 18% compared to 2021. It also announced an additional share buy-back programme of 921 million euros ($974.79 million) after obtaining regulatory authorization.

The bank’s shareholder remuneration against 2022 results would rise to 3.84 billion euros, split in equal parts in cash dividend and share buy-backs.