Santander lays out plans to return record amount of cash to investors in 2024

Santander said this morning that based on current projections, it will return a record amount of cash to shareholders in 2024 as part of its shareholder remuneration policy. 

According to a press release published ahead of the banking giant’s annual general meeting, the group said it is currently on track to meet its 2024 target profit and return on equity target.

As such, based on its ambition to return a certain percentage of profits to investors, cash, dividends, and share buybacks would amount to €6bn (£5.2bn). 

This would follow 2023‘s performance, which saw a record €5.5bn (£4.7bn) in cash, dividends and share buybacks return to investors.

Ana Botin, who has been executive chair of Santander for over 10 years, said: ”2024 has started with excellent business and commercial dynamics. We continue growing the number of customers we serve (+2m) and will increase our income around 9 per cent year-on-year in the first quarter as a result.”

Botin went on to add: “Costs have now remained flat for three consecutive quarters, resulting in a further improvement in our efficiency ratio to 42.7 per cent, which we expect to close in the first quarter, reflecting the impact on both costs and revenue of our ongoing transformation.”

As a result of the robust performance, the boss went on to say Santander’s retail business would achieve a return on tangible equity of 16 per cent in the first quarter of 2024, which included the impact of the banking tax in Spain on the results.

The bank’s returns have been boosted by its presence in South America, where growth has been more robust than in Europe. 

Botin said: “Very few banks have our unique combination of in-market and global scale as well as diversification. This is a major competitive advantage today and for the years to come. The common business models and objectives in our Retail and Consumer businesses, which represent 65% of the group, will allow us to grow customers and revenue further and structurally change our cost base, improving profitability.” 

Over the past 10 years, under the executive chair’s leadership, the banking giant has improved its return on tangible equity by 50% and increased the amount of cash return to shareholders by a multiple of seven while adding nearly 60m customers.