Delivering worth: Our dedication to stockholders
Santander, the global banking group operating in 17 countries, has unveiled a comprehensive plan to deliver value back to its shareholders over the next few years. The strategy encompasses a balanced approach of cash dividends and share buybacks, aiming to provide robust returns while maintaining a strong capital position.
## Cash Dividends
The board of Santander intends to maintain the ordinary remuneration policy for 2025, similar to the one implemented in 2024. This policy allocates approximately 50% of the Group’s reported profit (excluding non-cash and non-capital ratios impact items) for shareholder remuneration.
In addition to the ordinary dividends, Santander has reaffirmed its commitment to €1.3 billion in recurrent shareholder remuneration, which includes extraordinary cash dividends. For instance, an extraordinary cash dividend of €0.50 per share has been noted in some recent announcements.
Beyond the ordinary and extraordinary dividends, Santander is distributing returns from specific transactions, like the sale of assets, further supplementing cash shareholder returns.
## Share Buybacks and Repurchases
Santander has announced the allocation of €10 billion to shareholder remuneration in the form of share buybacks, corresponding to 2025 and 2026 results. This buyback program is being executed over an accelerated timetable, faster than originally planned, reflecting strong capital generation and strategic positioning following major acquisitions like TSB.
The bank has made it clear that major acquisitions such as the purchase of TSB will not affect Santander’s distribution policy or 2025 targets for buybacks and dividends.
## Summary
Santander’s strategy is to continue providing robust shareholder returns through a balanced mix of cash dividends and share repurchases, while leveraging excess capital to enhance earnings growth and maintain a strong capital position.
The payout for shareholder remuneration against 2024 results is approximately 50%, and the total cash dividend per share for 2024 results is €21 cents. Santander repurchased approximately 14.16% of its outstanding shares since 2021 through share buybacks.
Santander offers tailor-made, real-time assistance to shareholders through various channels, including a website, app, telephone line, WhatsApp, and email. The bank’s shareholder engagement has been praised by organizations such as the Asociación Española de Relación con Inversores (AERI), IR Magazine, and Institutional Investor.
Moreover, Santander encourages shareholder participation in decision-making at the bank, with every shareholder able to take part in general shareholders' meetings. The bank also provides exclusive financial products and services to its shareholders and offers them access to the Yo Soy Accionista loyalty programme.
[1] https://www.santander.com/uk/en/investor-relations/shareholder-remuneration.html [2] https://www.santander.com/uk/en/investor-relations/shareholder-remuneration/dividend-policy.html [3] https://www.santander.com/uk/en/investor-relations/shareholder-remuneration/2024-results.html [4] https://www.santander.com/uk/en/investor-relations/shareholder-remuneration/share-buybacks.html [5] https://www.santander.com/uk/en/investor-relations/news/press-releases/2022/santander-unveils-10-billion-share-buyback-programme.html
- Santander's approach to remunerate shareholders involves a balanced strategy that includes both cash dividends and share buybacks, with approximately 50% of the Group's profit allocated for shareholder remuneration in finance, and an additional €10 billion set aside for share buybacks over the next two years.
- In the realm of investing, Santander offers exclusive financial products and services to its shareholders, while encouraging their participation in business decision-making through general shareholders' meetings, and supports shareholders with various channels for assistance, including a website, app, and email.
