After a “strong” first quarter in a context marked by the war in Ukraine, in the words of Ana Botín, president of Banco Santander, the financial institution approved last week at the general meeting of shareholders the distribution of a complementary cash dividend of 5.15 euro cents, payable on May 2, 2022, with a yield of 1.6%.
Together with the first dividend, paid in November 2021, of 0.0485 euros, the total cash dividend charged to 2021 results stands at 10 euro cents. Including the share buybacks – a program that started on March 15 – the total remuneration to shareholders for 2021 will be around 3,400 million euros, half in cash and the other half as share buybacks, which is equivalent to to a dividend yield of 7%, as explained by the financial institution.
Santander informed the CNMV last Thursday that in the last week it has repurchased 40.4 million shares for 126.51 million euros, which, together with the investment made in the first two weeks of execution of the program, adds up to 110.51 million shares for a total amount of 345.1 million euros, 39.89% of the maximum of 865 million authorized. The average amount at which the financial institution is buying its shares stands at 3.123 euros. The bank’s shares are listed, at the close of the European market on Friday, at a price of 3.12 euros.
At the entity’s general shareholders’ meeting, which was held at the group’s corporate headquarters in Boadilla del Monte and had a new participation record, with the presence of more than 65% of the shareholders, Botín reiterated the bank’s objectives – that they had already made public in February – in the medium term: “An ordinary return on tangible capital (RoTE) of around 15% and an efficiency ratio of approximately 40%, while maintaining a fully loaded CET1 ratio ( financial solvency) of 12%”, they explain from Banco Santander. The entity also forecasts growth in earnings per share (EPS).
One of the most bullish
The financial entity, which closed last year with 18.6% on the stock market, has achieved a good performance so far this year with a rise of 6.04%, which places it as the tenth most bullish of the Ibex 35. A position that it perpetuates in the Stoxx 600 Banks, where it stands as one of the most bullish entities in Europe. Thus, the company chaired by Ana Botín has an upward potential of 28.4% until it reaches its target price, set at 4.02 euros by the consensus collected by Bloomberg.
As for its exposure to , the entity has no presence in Russia or the Ukraine and hardly any direct credit exposure (80 million euros in total), as explained by the group. However, if we take as a starting point the day of the outbreak of the war, it loses 3.7% on the stock market.
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