Banco Santander (LSE:BNC) unveiled a new €1.459 billion share buyback and a 50% dividend hike after generating record profits, adding its name to an expected bumper season for banking returns.
Shares in the Spanish lender, the second largest in the euro zone by market cap, rose 1.4% in Madrid and 2.4% in London after it said it will launch the buyback tomorrow.
A final cash dividend for 2023 of €0.095 per share was also proposed for approval at its annual general meeting in the second half of next month.
Total dividends per share for 2023 will be €0.176 per share.
Santander net profit hit a record €11.08 billion.
Ana Botín, Santander’s executive chair, said: “After record performance in 2023, we continue to invest for future growth while increasing shareholder returns, returning more than €5.5bn through dividends and buybacks, which represents an equivalent yield of approximately ten per cent.”
“We are already seeing good progress in 2024 and expect to achieve all our targets for this year, including a return on tangible equity of 16 per cent.”