TIDMBNC
RNS Number : 7468N
Banco Santander S.A.
26 September 2023
Santander to pay 8.10 euro cents per share in interim cash
dividend, up 39%
-- In line with the new shareholder payout policy announced at
the bank's Investor Day in February, the 2023 interim shareholder
remuneration will be approximately EUR2,620 million, some 50% of
Santander's first-half attributable profit[1].
-- Approximately half of the remuneration will be paid to
shareholders in the form of a cash dividend of 8.1 euro cents per
share, an increase of 39% versus last year's interim payment, with
the remaining half distributed through a share repurchase
programme, subject to regulatory approval.
-- Since 2021 Santander has repurchased over 7% of its
outstanding shares through share buybacks.
-- The board of directors approves the appointment of Glenn
Hutchins as vice chair and lead independent director effective 1
October 2023. Mr Hutchins succeeds Bruce Carnegie-Brown, who will
retire from the board at the next Annual General Meeting in 2024
after more than nine years of service.
Madrid, 26 September 2023 - PRESS RELEASE
The board of directors of Banco Santander today announced its
decision to pay an interim cash dividend against 2023 results of
8.10 euro cents per share, an increase of 39% compared to the same
dividend last year. Furthermore, the board has agreed to execute a
share repurchase programme for an approximate amount of EUR1,310
million, subject to regulatory approval.
As a result, Santander's payout ratio (the proportion of
earnings distributed to shareholders) increases from 40% to 50% of
attributable profit(1) , consistent with the new remuneration
policy announced at the bank's Investor Day in February. The
interim shareholder remuneration against the 2023 results will
total approximately EUR2,620 million. The cash dividend will be
paid on 2 November 2023.
The board of directors of Banco Santander will agree on the
final distribution from 2023 earnings in the first quarter of 2024,
subject to the appropriate corporate and regulatory approvals. The
2023 interim shareholder remuneration represents an equivalent
annualised yield of over 9%[2]. Since 2021 Santander has
repurchased over 7% of its outstanding shares through share
buybacks.
Ana Botín, Banco Santander executive chair , said: "Our business
continues to perform extremely well and we are on track to meet all
our 2023 targets. The recent announcement to align our operating
model in retail & commercial and consumer finance to our
strategy allows us to better serve our customers while delivering
profitable growth and increasing efficiency. In the past 12 months,
we have delivered 11% growth in tangible net asset value plus
dividend per share."
Glenn Hutchins appointed lead independent director
The board of directors of Banco Santander also announces the
appointment of Glenn Hutchins as vice chair and lead independent
director, following the recommendation of the board's nomination
committee. Mr Hutchins' appointment is effective from 1 October
2023. José Antonio Álvarez, non-executive director of the board, is
also vice chair of Banco Santander.
Glenn Hutchins, who joined Santander's board of directors in
2022 as a non-executive director (independent), will replace Bruce
Carnegie-Brown, who will retire from the board in 2024 after more
than nine years. Mr Hutchins will replace Mr Carnegie-Brown as
chair of the board remuneration committee effective on 1 October
2023, with Mr Carnegie-Brown remaining as a member of that
committee until the 2024 annual general meeting (AGM) to ensure an
orderly transition. Mr Carnegie-Brown will also continue as chair
of the board nomination committee until the AGM, while he is
stepping down from the board executive committee and innovation
& technology committee.
Ana Botín said: "We are very grateful to Bruce for the
outstanding contribution he has made to Santander's board over the
last nine years. His insight and counsel have been invaluable in
guiding the bank through a period of significant growth and
success. Glenn is a superb candidate to succeed Bruce and has
already added significant value to the board of directors since
joining last year. I look forward to working together more closely
in his new capacity as lead independent director."
Santander's board of directors has 15 members, of which 66% are
independent. The membership incorporates a broad spectrum of
professional expertise and diversity in nationality and skills.
Furthermore, 40% of its members are women.
Note to editors :
Glenn Hutchins co-founded US technology and investment firm
Silver Lake, where he was CEO until 2011. He has been a senior
managing director at The Blackstone Group (1994-1999) and Thomas H.
Lee Co. (1985-1994), and a consultant at Boston Consulting Group.
He has also served on the boards of SunGard Data Systems (Chair,
2005-2015), Nasdaq (2005-2017) and Virtu Financial (2017-2021), and
served as a director and chair of the audit and risk committee of
the Federal Reserve Bank of New York from 2011 to 2021. Mr Hutchins
was born in Virginia (US) in 1955 and graduated with a bachelor of
arts, an MBA and a juris doctor from Harvard University.
Important information
Non-IFRS and alternative performance measures
This document contains financial information prepared according
to International Financial Reporting Standards (IFRS) and taken
from our consolidated financial statements, as well as 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, and other non-IFRS
measures. The APMs and non-IFRS measures were calculated with
information from Grupo Santander; however, they are neither defined
or detailed in the applicable financial reporting framework nor
audited or reviewed by our auditors. We use these APMs and non-IFRS
measures when planning, monitoring and evaluating our performance.
We consider them to be useful metrics for our management and
investors to compare operating performance between periods.
Nonetheless, the APMs and non-IFRS measures are supplemental
information; their purpose is not 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 2022 Annual Report on Form 20-F filed with the
U.S. Securities and Exchange Commission (the SEC) on 1 March 2023 (
https://www.santander.com/content/dam/santander-com/en/documentos/informacion-sobre-resultados-semestrales-y-anuales-suministrada-a-la-sec/2023/sec-2022-annual-20-f-2022-en.pdf
), as well as the section "Alternative performance measures" of
this Banco Santander, S.A. (Santander) Q2 2023 Financial Report,
published on 26 July 2023 (
https://www.santander.com/en/shareholders-and-investors/financial-and-economic-information#quarterly-results
). 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 businesses included 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.
Non-financial information
This document contains, in addition to financial information,
non-financial information (NFI), including environmental, social
and governance-related metrics, statements, goals, commitments and
opinions.
NFI is not audited nor reviewed by an external auditor. NFI is
prepared following various external and internal frameworks,
reporting guidelines and measurement, collection and verification
methods and practices, which are materially different from those
applicable to financial information and are in many cases emerging
and evolving. NFI is based on various materiality thresholds,
estimates, assumptions, judgments and underlying data derived
internally and from third parties. NFI is thus subject to
significant measurement uncertainties, may not be comparable to NFI
of other companies or over time or across periods and its inclusion
is not meant to imply that the information is fit for any
particular purpose or that it is material to us under mandatory
reporting standards. NFI is for informational purposes only and
without any liability being accepted in connection with it except
where such liability cannot be limited under overriding provisions
of applicable law.
Forward-looking statements
Santander hereby warns that this document contains
"forward-looking statements" as per the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Such statements can be
understood through words and expressions like "expect", "project",
"anticipate", "should", "intend", "probability", "risk", "VaR",
"RoRAC", "RoRWA", "TNAV", "target", "goal", "objective",
"estimate", "future", "commitment", "commit", "focus", "pledge" and
similar expressions. They include (but are not limited to)
statements on future business development, shareholder remuneration
policy and NFI. However, risks, uncertainties and other important
factors may lead to developments and results to differ materially
from those anticipated, expected, projected or assumed in
forward-looking statements. The following important factors (and
others described elsewhere in this document and other risk factors,
uncertainties or contingencies detailed in our most recent Form
20-F and subsequent 6-Ks filed with, or furnished to, the SEC), as
well as other unknown or unpredictable factors, could affect our
future development and results and could lead to outcomes
materially different from what our forward-looking statements
anticipate, expect, project or assume: (1) general economic or
industry conditions (e.g., an economic downturn; higher volatility
in the capital markets; inflation; deflation; changes in
demographics, consumer spending, investment or saving habits; and
the effects of the war in Ukraine or the COVID-19 pandemic in the
global economy) in areas where we have significant operations or
investments; (2) climate-related conditions, regulations, policies,
targets and weather events; (3) exposure to various market risks
(e.g., risks from interest rates, foreign exchange rates, equity
prices and new benchmark indices); (4) potential losses from early
loan repayment, collateral depreciation or counterparty risk; (5)
political instability in Spain, the UK, other European countries,
Latin America and the US; (6) legislative, regulatory or tax
changes (including regulatory capital and liquidity requirements),
especially in view of the UK's exit from the European Union and
increased regulation prompted by financial crises; (7) acquisition
integration challenges arising from deviating management's
resources and attention from other strategic opportunities and
operational matters; (8) our own decisions and actions including
those affecting or changing our practices, operations, priorities,
strategies, policies or procedures; (9) uncertainty over the scope
of actions that may be required by us, governments and others to
achieve goals relating to climate, environmental and social
matters, as well as the evolving nature of underlying science and
industry and governmental standards and regulations; and (10)
changes affecting our access to liquidity and funding on acceptable
terms, especially due to credit spread shifts or credit rating
downgrades for the entire group or core subsidiaries.
Forward looking statements are based on current expectations and
future estimates about Santander's and third-parties' operations
and businesses and address matters that are uncertain to varying
degrees, including, but not limited to developing standards that
may change in the future; plans, projections, expectations,
targets, objectives, strategies and goals relating to
environmental, social, safety and governance performance, including
expectations regarding future execution of Santander's and
third-parties' energy and climate strategies, and the underlying
assumptions and estimated impacts on Santander's and third-parties'
businesses related thereto; Santander's and third-parties'
approach, plans and expectations in relation to carbon use and
targeted reductions of emissions; changes in operations or
investments under existing or future environmental laws and
regulations; and changes in government regulations, regulatory
requirements and internal policies, including those related to
climate-related initiatives.
Forward-looking statements are aspirational, should be regarded
as indicative, preliminary and for illustrative purposes only,
speak only as of the date of this document, are informed by the
knowledge, information and views available on such date and are
subject to change without notice. Santander is not required to
update or revise any forward-looking statements, regardless of new
information, future events or otherwise, except as required by
applicable law.
Not a securities offer
This document and the information it contains does not
constitute an offer to sell nor the solicitation of an offer to buy
any securities.
Past performance does not indicate future outcomes
Statements about historical performance or growth rates must not
be construed as suggesting that future performance, share price or
results (including earnings per share) will necessarily be the same
or higher than in a previous period. Nothing in this document
should be taken as a profit and loss forecast.
[1] The target payout will be approximately 50% of the group net
attributable profit (excluding the impacts that do not affect cash
or capital ratios directly), split approximately 50% in cash
dividends and 50% in share buybacks. Implementation of the
shareholder remuneration policy is subject to future corporate and
regulatory decisions and approvals.
[2] Per Banco Santander's market capitalization on 25 September
2023.
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