Santander sees over 6 billion euros in payouts after solid 2024 start
Reuters
Published Mar 22, 2024 07:12
Updated Mar 22, 2024 13:00
By Jesús Aguado
MADRID (Reuters) -Spain's Santander (BME:SAN) is on track to pay shareholders more than 6 billion euros ($6.50 billion) in dividends and buybacks against 2024 results after a solid start to the year, the bank said on Friday.
The new guidance implies that the euro zone's second-biggest bank by market value would end 2024 with a net profit in excess of 12 billion euros.
Santander has a 50% payout policy (the proportion of earnings distributed to shareholders) which it splits equally between cash dividends and ordinary share buybacks.
The lender's executive chair Ana Botin told shareholders at its annual meeting on Friday that the bank expects to reach a 16% return on tangible equity (ROTE), a measure of profitability, in the first quarter, including the annualised impact of the banking tax in Spain.
"2024 has started with excellent business and commercial dynamics. We continue growing the number of customers we serve and will increase our income around 9% year-on-year in the first quarter as a result," Botin said.
Santander has relied in the past on Latin America for revenue growth but has recently benefited from higher interest rates in Europe.
By 1249 GMT, shares in Santander were up 2.3%, outperforming Spain's leading blue chip index Ibex-35 which was up 0.5%.
Botin added she was "very confident" the bank would deliver a better performance in 2024 than 2023, which was already a record year.
UBS said in a note to clients that the bank's capital return stood above consensus, adding the commentary on the first quarter was positive on all key earnings fronts.
"This should start offering some comfort and help investors focus on the stock's heavily discounted valuation," UBS said, adding that its ROTE target implied a net profit of over 12.5 billion euros for 2024.
($1 = 0.9235 euros)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.