Banco Santander’s board of directors has approved the payment of a cash dividend on account of the 2023 results of 8.1 cents per share, 39% more than the same dividend of the previous year, which will mean a payout for the company of around 1,310 million euros.
As the Spanish bank chaired by Ana Botín informed the Spanish National Securities Market Commission (CNMV) on Tuesday, this dividend is in line with the new shareholder remuneration policy, which plans to distribute around 50% of attributable profit as a dividend.
This year, Banco Santander’s interim dividend will amount to around EUR 2,620 million, half of which, around EUR 1,310 million, will be paid in the form of a cash dividend to be paid as of November 2.
Share buyback programme for half of Banco Santander’s 2023 dividend
The other half of the 2023 dividend – another $1,310 million – will be distributed via a share buyback programme, subject to regulatory approval and whose terms and conditions will be published at a later date.
Since 2021, the company claims to have repurchased more than 7% of its outstanding shares through share buybacks.
With this decision, the proportion of profit distributed to shareholders increased from 40% to 50% of attributable profit.
In addition, in the first quarter of 2024, Banco Santander’s board of directors will agree on a supplementary remuneration charged to the 2023 results, subject to the corresponding internal and regulatory decisions.
Ana Botín, chairman of Banco Santander, said: “The bank’s results are very good, and we are on track to meet all our targets for 2023. The recent decision to align the operating model of the retail, commercial and consumer banking areas with our strategy enables us to better serve our customers, grow profitably and improve efficiency. In the last 12 months, we have increased tangible book value (TNAV) per share plus dividend per share by 11%.
Glenn Hutchins, new coordinating director
The board of directors of Banco Santander also announced the appointment of Glenn Hutchins as deputy chairman and lead independent director following the recommendation of the board’s nomination committee. Hutchins’ appointment will take effect on 1 October 2023. José Antonio Álvarez, a non-executive director, is also Deputy Chairman of Banco Santander.
Glenn Hutchins, who joined Santander’s board in 2022 as an external (independent) director, will replace Bruce Carnegie-Brown, who will retire from the board in 2024 after more than nine years. Hutchins will replace Carnegie-Brown as chairman of the board remuneration committee from 1 October 2023, and Carnegie-Brown will remain a member of the board remuneration committee until the 2024 AGM to ensure an orderly transition. Carnegie-Brown will also continue to chair the nomination committee until the AGM, and is stepping down from the executive committee and the innovation and technology committee.
Ana Botín said: “We are very grateful to Bruce for his excellent contribution to the Santander board over the past nine years. His knowledge and advice have been invaluable in guiding the bank through a period of great growth and success. Glenn is a superb candidate to succeed Bruce and has already made important contributions to the board since joining last year. We look forward to working more closely with him in his new role as lead director.
Banco Santander’s board of directors is composed of 15 members, 66% of whom are independent. The directors have extensive professional knowledge, come from a variety of nationalities and bring a wide range of skills. In addition, 40% of the board members are women.