FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of
September, 2021
Commission File
Number: 001-12518
Banco Santander, S.A.
(Exact name of
registrant as specified in its charter)
Ciudad Grupo
Santander
28660 Boadilla
del Monte (Madrid) Spain
(Address of principal
executive office)
Indicate by check mark whether the registrant
files or will file annual reports under cover of Form 20-F or Form 40-F:
Indicate by check
mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check
mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Banco Santander,
S.A.
TABLE OF CONTENTS
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1
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Report of Inside Information dated September 28, 2021
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Item 1
Banco
Santander, S.A. (“Banco Santander” or the “Bank”), in compliance with the Securities Market legislation,
hereby communicates the following:
INSIDE
INFORMATION
The
board of directors has approved today the shareholder remuneration policy for 2021 results:
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Target
of a total shareholder remuneration of c. 40% of the Group’s underlying profit;
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Split
of such remuneration in equal parts in cash dividend payments and share buybacks for an amount
equal to the dividend; and
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Remuneration
payable in two cycles: interim distribution around November and final distribution around
May following our annual shareholders meeting.
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The
board’s decision has been taken in view of the final lifting of the European Central Bank (“ECB”) recommendation
that limited shareholder remuneration, which is set for 30 September 2021, and reflects its commitment to the targets of generating long
term value for shareholders and deploying capital to high growth, high return businesses, whilst maintaining a fully loaded CET1 capital
at the top end of its 11-12% target.
In
application of such shareholder remuneration policy, the board has approved the payment of an interim cash dividend against 2021 results
of 4.85 euro cents per share, equivalent to 20% of the Group’s underlying profit in the first half of 2021:
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The
interim dividend will be paid from 2 November 2021; and
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The
last day to trade shares with a right to receive the interim dividend will be 28 October
2021, the ex-dividend date will be 29 October 2021 and the record date will be 1 November,
2021.
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In
addition, also in application of such policy, the board has agreed to implement a share repurchase programme for an amount equivalent
to 20% of the Group’s underlying profit in the first half of 2021 (i.e. a programme of approximately 841 million euros), for which
the Bank has received ECB approval today. A further announcement setting out additional information on the terms of the repurchase programme
will be made before it commences.
The
implementation of the remainder of the shareholder remuneration policy for 2021 is subject to the appropriate corporate and regulatory
approvals.
Boadilla del Monte (Madrid),
28 September 2021
IMPORTANT
INFORMATION
Non-IFRS
and alternative performance measures
This
document contains, in addition to the financial information prepared in accordance with International Financial Reporting Standards (“IFRS”)
and derived from our financial statements, alternative performance measures (“APMs”) as defined in the Guidelines on Alternative
Performance Measures issued by the European Securities and Markets Authority (ESMA) on 5 October 2015 (ESMA/2015/1415en) and other non-IFRS
measures (“Non-IFRS Measures”). These financial measures that qualify as APMs and non-IFRS measures have been calculated
with information from Santander Group; however those financial measures are not defined or detailed in the applicable financial reporting
framework nor have been audited or reviewed by our auditors. We use these APMs and non-IFRS measures when planning, monitoring and evaluating
our performance. We consider these APMs and non-IFRS measures to be useful metrics for our management and investors to compare operating
performance between accounting periods, as these measures exclude items outside the ordinary course performance of our business, which
are grouped in the “management adjustment” line and are further detailed in Section 3.2. of the Economic and Financial Review
in our Directors’ Report included in our Annual Report on Form 20-F for the year ended 31 December 2020. Nonetheless, these APMs
and non-IFRS measures should be considered supplemental information to, and are not meant to substitute IFRS measures. Furthermore, companies
in our industry and others may calculate or use APMs and non-IFRS measures differently, thus making them less useful for comparison purposes.
For further details on APMs and Non-IFRS Measures, including their definition or a reconciliation between any applicable management indicators
and the financial data presented in the consolidated financial statements prepared under IFRS, please see the 2020 Annual Report on Form
20-F filed with the U.S. Securities and Exchange Commission on 26 February 2021, as well as the section “Alternative performance
measures” of the annex to the Banco Santander Q2 2021 Financial Report, published as Inside Information on 28 July 2021. These
documents are available on Santander’s website (www.santander.com). Underlying measures, which are included in this document, are
non-IFRS measures.
The
businesses included in each of our geographic segments and the accounting principles under which their results are presented here may
differ from the included businesses and local applicable accounting principles of our public subsidiaries in such geographies. Accordingly,
the results of operations and trends shown for our geographic segments may differ materially from those of such subsidiaries
Forward-looking
statements
Banco
Santander advises that this document contains “forward-looking statements” as per the meaning of the U.S. Private Securities
Litigation Reform Act of 1995. These statements may be identified by words like “expect”, “project”, “anticipate”,
“should”, “intend”, “probability”, “risk”, “VaR”, “RoRAC”, “RoRWA”,
“TNAV”, “target”, “goal”, “objective”, “estimate”, “future” and
similar expressions. Found throughout this document, they include (but are not limited to) statements on our future business development,
economic performance and shareholder remuneration policy. However, a number of risks, uncertainties and other important factors may cause
actual developments and results to differ materially from our expectations. The following important factors, among others, could affect
our future results and could cause materially different outcomes from those anticipated in forward-looking statements: (1) general economic
or industry conditions of areas where we have significant operations or investments (such as a worse economic environment; higher volatility
in the capital markets; inflation or deflation; changes in demographics, consumer spending, investment or saving habits; and the effects
of the COVID-19 pandemic in the global economy); (2) exposure to various market risks (particularly interest rate risk, foreign exchange
rate risk, equity price risk and risks associated with the replacement of benchmark indices); (3) potential losses from early repayments
on our loan and investment portfolio, declines in value of collateral securing our loan portfolio, and counterparty risk; (4) political
stability in Spain, the United Kingdom, other European countries, Latin America and the US; (5) changes in legislation, regulations or
taxes, including regulatory capital and liquidity requirements, especially in view of the UK exit from the European Union and increased
regulation in response to financial crisis; (6) our ability to integrate successfully our acquisitions and related challenges that result
from the inherent diversion of management’s focus and resources from other strategic opportunities and operational matters; and
(7) changes in our access to liquidity and funding on acceptable terms, in particular if resulting from credit spreads shifts or downgrade
in credit ratings for the entire group or significant subsidiaries.
Numerous
factors could affect our future results and could cause those results deviating from those anticipated in the forward- looking statements.
Other unknown or unpredictable factors could cause actual results to differ materially from those in the forward-looking statements.
Forward-looking
statements speak only as of the date of this document and are informed by the knowledge, information and views available on such date.
Santander is not required to update or revise any forward-looking statements, regardless of new information, future events or otherwise.
No
offer
The
information contained in this document is subject to, and must be read in conjunction with, all other publicly available information,
including, where relevant any fuller disclosure document published by Santander. Any person at any time acquiring securities must do
so only on the basis of such person’s own judgment as to the merits or the suitability of the securities for its purpose and only
on such information as is contained in such public information having taken all such professional or other advice as it considers necessary
or appropriate in the circumstances and not in reliance on the information contained in this document. No investment activity should
be undertaken on the basis of the information contained in this document. In making this document available Santander gives no advice
and makes no recommendation to buy, sell or otherwise deal in shares in Santander or in any other securities or investments whatsoever.
Neither
this document nor any of the information contained therein constitutes an offer to sell or the solicitation of an offer to buy any securities.
No offering of securities shall be made in the United States except pursuant to registration under the U.S. Securities Act of 1933, as
amended, or an exemption therefrom. Nothing contained in this document is intended to constitute an invitation or inducement to engage
in investment activity for the purposes of the prohibition on financial promotion in the
U.K.
Financial Services and Markets Act 2000.
Historical
performance is not indicative of future results
Statements
about historical performance or accretion must not be construed to indicate that future performance, share price or future earnings (including
earnings per share) in any future period will necessarily match or exceed those of any prior period. Nothing in this document should
be taken as a profit forecast.
SIGNATURE
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
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Banco Santander, S.A.
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Date:
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September 28, 2021
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By:
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/s/ Pedro de Mingo Kaminouchi
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Name:
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Pedro de Mingo Kaminouchi
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Title:
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Head of Regulatory Compliance
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