Santander increases the 2023 cash dividend by 50% and will repurchase shares for 1,459 million

The total shareholder remuneration charged to 2023 results will thus reach 5,538 million euros, 50% of the profit

The board of directors of Banco Santander has agreed to propose to the ordinary general meeting of shareholders in 2024 the approval of a complementary cash dividend for a gross amount of 0.095 euros per share, as announced by the entity this Monday.

Consequently, the total cash dividend per share charged to 2023 results will be 17.6 euro cents, which represents an increase of approximately 50% compared to the cash dividend charged to the previous year.

Said dividend, subject to the approval of the board, would be payable starting next May 2, so the last day of trading of the share with the right to receive the dividend would be April 26, the share would be listed ex-dividend on April 29 and the registration date would be April 30.

NEW BUYBACK PROGRAM

The bank also announced this Monday that its board of directors has agreed to implement a new share buyback program, to which it will allocate 1,459 million euros, for which it has already obtained the relevant regulatory authorization.

This buyback program will begin to be executed starting tomorrow, Tuesday, as specified by the entity.

Once both actions are completed, the total shareholder remuneration with respect to the 2023 results will reach 5,538 million euros, 50% of the group's attributable net profit in 2023, divided in approximately equal parts between cash dividend (2,769 million euros ) and buyback programs (2,769 million euros). This amount represents an equivalent profitability of approximately 10%.

Once the new share buyback is completed in June, Santander will have repurchased approximately 11% of its outstanding shares since 2021.

With these payments announced today, Santander's payout (the proportion of profits distributed to shareholders) increases from 40% to 50% of the attributable profit, in line with the new shareholder remuneration policy announced a year ago.

"After record results in 2023, we continue to invest for future growth, while increasing shareholder returns to more than €5.5 billion in dividends and buybacks, representing an equivalent return of approximately 10%. 2024 has started well and we hope to achieve all our objectives for the year, including a return on tangible capital of 16%", highlighted the president of Santander, Ana Botín.

Banco Santander recorded record profits in 2023, for the second consecutive year, achieving an attributable net profit of 11,076 million euros, which is equivalent to an increase of 15.3% compared to 2022.

NEW INDEPENDENT DIRECTORS: CARLOS BARRABÉS AND ANTONIO WEISS

The board of directors of Banco Santander will also submit to a vote of the board the appointments of Carlos Barrabés and Antonio Weiss as new independent directors.

Barrabés and Weiss will fill the vacancies left by Bruce Carnegie-Brown, who will leave the board after the meeting, and Ramiro Mato, who will not stand for re-election and will leave the board after the meeting, once regulatory approval for the appointment is obtained. by Antonio Weiss.

Santander has highlighted that Barrabés is considered a "pioneer of electronic commerce." "He brings extensive experience in the Spanish market, especially in digitalization and innovation, and the use of technology for socioeconomic development, the promotion of talent and helping people and institutions get the most out of digital transformation."

Weiss, for his part, will bring to the entity his experience in the US market, one of the group's strategic markets, and particularly in the financial sector, where he held different management positions.

"It has been a true privilege and honor to have Bruce as lead director and we are very grateful for his extraordinary contribution to the progress of the bank and his advice for almost a decade. We are also very grateful to Ramiro for his contribution to the Santander board and "We will miss both. Carlos and Antonio bring to the board extensive experience in innovation and digitalization, as well as financial and business knowledge. We are delighted to have them join us," said Ana Botín.

The board of directors of Banco Santander is made up of 15 members, of which two thirds are independent and 40% are women.