Santander to Invest EUR20 Billion in Four Years in Digitalization and Technology

   By Pietro Lombardi

Banco Santander SA (SAN.MC) will invest more than 20 billion euros ($22.4 billion) over the next four years in digitalization and technology as it aims to boost profitability and growth.

The investment in technology and digitalization will improve customer experience and their loyalty while also cutting costs, the Spanish bank said Wednesday ahead of its investor day in London. Improving capital allocation and operational performance, as well as speeding up digitalization, are among the key focus of the bank's new plan.

Spain's largest bank confirmed its main financial targets, which include an underlying return on tangible equity--a key measure of profitability--of 13% to 15% and a core tier 1 ratio of between 11% and 12% in the medium term.

It also targets a dividend payout of 40% to 50% and incremental annual cost savings of EUR1.2 billion.

The bank is simplifying its management structure.

"Our focus remains on driving greater loyalty within our customer businesses, and leveraging our global scale to accelerate investments in digitalization and capitalizes on cross-border flows," Executive Chairman Ana Botin said.

Santander achieved its 2018 targets, which included a double-digit growth in EPS, a core tier 1 ratio above 11% and a RoTE above 11.5%.

Write to Pietro Lombardi at pietro.lombardi@dowjones.com

(END) Dow Jones Newswires

April 03, 2019 03:34 ET (07:34 GMT)

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