Don't miss these key takeways

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• The bank is targeting a return on tangible equity (RoTE) of 15-17% for the next three years (2023-2025), while delivering double-digit average annual growth in tangible net asset value per share plus dividend per share through the cycle.

• By leveraging Santander’s unique in-market and global scale, diversification and customer focus, the bank aims to reach 200 million customers by 2025, contributing to average revenue growth of c.7-8% per annum in constant euros.

• Santander has also received regulatory approval for a new share buyback programme totaling €921 million.

• In addition, Santander’s board of directors has submitted a final cash dividend for 2022 of 5.95 euro cents per share1 for approval at the forthcoming general shareholders’ meeting. As a result, the total cash dividend per share for 2022 will be 11.78 euro cents, up 18% versus the previous year.

Last update 28-02-2023 12:45

The Banco Santander leadership team presents today the bank’s plan for growth for the next three years (2023-2025) at its Investor Day in London. Ana Botín (Executive Chair), Héctor Grisi (CEO) and José García Cantera (CFO) will outline the group’s strategy, as well as key financial and commercial goals, which include:

  • Increasing the shareholder payout policy (the proportion of profit distributed to shareholders) from c.40% to c.50% in 2023-2025 through both cash dividends and share buybacks.
  • Achieving a return on tangible equity of 15-17% in 2023-2025 and an efficiency ratio of c.42% by 2025.
  • Maintaining a fully-loaded CET1 above 12%.
  • Delivering double-digit average annual growth in tangible net asset value (TNAV) per share plus dividend per share through the cycle - a key measure of value creation.

We have delivered on the commitments set at the 2019 Investor Day - adding millions of customers, significantly improving profitability, while building a rock-solid balance sheet. Our results show the value of our unique combination of global and in-market scale, diversification, and customer focus

Ana Botín, Group executive chair

Santander delivered record attributable profit in 2022 by leveraging the combined strength of its local market leadership, with the power of its scale, global businesses and network. This combination is central to the bank’s plan for growth going forward, enabling Santander to grow its customer base and revenues, while reducing the cost-to-serve and improving customer value and efficiency.

By 2025, the bank is aiming to add 40 million customers, taking the total to c.200 million, while increasing active customers by 26 million to c.125 million. This will help to grow revenues by c.7-8% per year on average in constant euros in 2023-2025. Furthermore, through its ongoing transformation, the bank expects to improve its efficiency ratio from 45.8% to c.42% by 2025.

Fully leveraging our local leadership, and our global and network businesses, will add to our already strong results as we deliver significant value for our customers, communities and shareholders. The outstanding job our teams have done in recent years provides a solid foundation and our progress shows we have the technology, teams and expertise to make this happen

Héctor Grisi, Chief executive officer

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