By Joshua Kirby 
 

Banco Santander SA said Tuesday that it will return some 1.7 billion euros ($1.99 billion) to shareholders from earnings this year, through dividend payments and a share buyback, in light of the lifting of European Union recommendations on limits to shareholder remuneration.

The Spanish bank will pay a dividend of 4.85 European cents a share, and will also buy back shares amounting to EUR841 million. The total figure of around EUR1.7 billion amounts to 40% of underlying profit for the first half of the year, the bank said, adding that a further and final remuneration from 2021 earnings will be set out in the first quarter next year.

The decision has been taken in light of the lifting of European Central Bank recommendations limiting shareholder remuneration until Sept. 30, Santander said.

The cash returns reflect Santander's confidence that investing in its shares at current valuation offers an "attractive opportunity" to generate value for shareholders, Executive Chairman Ana Botin said.

 

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

 

(END) Dow Jones Newswires

September 28, 2021 13:13 ET (17:13 GMT)

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