Shareholder remuneration

In application of the shareholder remuneration policy for 20231, the board of directors approved an interim cash dividend of EUR 8.10 cents per share charged against 2023 results to be paid from 2 November 2023. This represents a 39% increase compared to the equivalent cash dividend payment in 2022.

Additionally, the board approved a share buyback programme of up to EUR 1,310 million, which commenced on 28 September once the applicable regulatory approval was obtained, as announced in the Inside Information disclosed on 27 September 2023.

As a result, the total remuneration of this interim distribution charged against 2023 results exceeds EUR 2.6 billion (+34% compared to its equivalent of 2022) and represents approximately 50% of the H1 2023 underlying profit (25% dividend payment and 25% share buyback).

The bank plans to announce a final remuneration against 2023 earnings in the first quarter of 2024, subject to the appropriate corporate and regulatory approvals.

About the Buy-Back Programme is being executed pursuant to the resolutions adopted by the general shareholders’ meeting held on 31 March 2023 and has the following characteristics: 

• Purpose of the Buy-Back Programme: to reduce the Bank’s share capital through the redemption of the shares acquired under the Programme in the share capital reduction approved by the 2023 Annual Shareholders' Meeting under item 5ºB of the agenda.

• Maximum investment: the Buy-Back Programme will have a maximum monetary amount of 1,310 million euros. 

• Maximum price: Banco Santander intends to implement the Buy-Back Programme in a way that causes the average purchase price of shares not to exceed 4.57 euro, corresponding to the tangible book value per share at 30 June 2023. 

• Maximum number of shares: The maximum number of shares that may be acquired pursuant to the Programme will depend on the average price at which they are acquired, but will not exceed 1,604,701,732 shares. Assuming that the average purchase price at which shares are acquired pursuant to the Programme were 3.60 euros, the maximum number of shares that would be acquired would be 363,888,889 (c. 2.25% of the Bank’s share capital). 

• Other conditions: shares will be purchased at market price, subject to the following restrictions:
  • The Bank may not purchase shares at a price higher than the greater of the following two: (a) the price of the last independent trade, or (b) the highest current independent purchase bid on the trading venue where the purchase is carried out. 
  • The Bank may not purchase on any trading day more than 25% of the average daily volume of the Bank’s shares on the trading venue on which the purchase is carried out. The average daily volume will be based on the average daily volume traded in the twenty (20) business days preceding the date of each purchase.

• Indicative duration of the Buy-Back Programme: from 28 September 2023 to 25 January 2024. However, the Bank reserves the right to terminate the Buy-Back Programme if, prior to its expiry date, the maximum monetary amount is reached or if any other circumstances so advise.
  

• Execution of the Buy-Back Programme: the Programme will be managed by Goldman Sachs International, who will independently make trading decisions concerning timing. Acquisitions under the Buy-Back Programme may be made in the Spanish Automated Quotation System (Mercado Continuo), as well as in Turquoise Europe, DXE Europe and Aquis Exchange Europe.  

The interruption, termination or modification of the Buy-Back Programme will be duly communicated to the Spanish National Securities Market Commission (Comisión Nacional del Mercado de Valores). Transactions under the Buy-Back Programme will be publicly disclosed within 7 daily market sessions following the date of their execution.

Further information on shareholder remuneration can be found in the following sections of this website:

• Dividends
• Share buybacks and why they’re important to shareholders
• Prices of latest reinvestments (PDF 171 Kb) (Only available in Spanish)
• The most recent and historical dividend payments are shown in the table below.