The banking sector has returned to pre-pandemic normality and the best proof of this is that, taking advantage of the presentation of annual results, all entities have confirmed their renewed shareholder remuneration policies, very much in line with what they had advanced months ago.
On average, the six entities listed in Spain will distribute a cash dividend of 4% return, with exceptions such as BBVA and CaixaBank, above 5%, and Bankinter which -in the absence of knowing what its third dividend will be charged to the accounts of 2021- could be placed, at least, at 4.5%, although it is not ruled out that it will also slightly exceed 5% once the amount of this last payment is revealed. Now, the photo changes, slightly, if it includes those where Banco Santander also enters. In this case, the profitability of the shareholder remuneration of the entity chaired by Ana Botín would reach 4.7%, at current prices, and that which is paid by BBVA and CaixaBank, which are called to lead the remuneration, would skyrocket to investors for years to come.
From more to less, there is no doubt that and his share repurchase of 3,500 million euros – it is the most ambitious program in the least time of the European bank, only 12 months – has positioned him on another level. Between the announced cash payment charged to the 2021 accounts, of 0.31 gross euros per share, and the repurchase – which began on November 18 – its profitability reaches 14.8%. The entity chaired by Carlos Torres already distributed a first payment on account last October of 8 cents that will be complemented in April with another installment of 0.23 euros.
If the planned repurchase of 1,800 million is added to the cash payment by Caixa, its return is close to 12%
CaixaBank, for its part, has not only laid the foundations for a dividend that is equivalent to 50% of its net profit, but has already made its intentions clear for 2022, when it will raise the fork to be distributed to 50%-60 %. In addition, the Catalan firm intends to carry out , although it will not give specific figures for the amount until the second quarter of the year when it presents its new strategic plan (after the integration of Bankia). However, this repurchase, which will take place this year, would be around 1,800 million euros, taking into account that the bank has made it clear that it seeks to distribute the excess capital among its shareholders over a minimum CET1 fully loaded of 12%. At the end of 2021 it stood at 12.82%, with which this excess is the equivalent of some 1,770 million euros.
Only with the cash dividend, of 0.1463 euros to be distributed in April, it reaches a return of 5%. If the repurchase is added to this, it would reach 11.9%.
Instead, it has chosen to step back and distance itself from its competitors. His dividend has finally been in the lower part of the range (with a 40% payout) and maintains what has already been announced: 50% in cash and the other 50% by way of repurchase. Its cash dividend charged to 2021 will reach 0.076 euros. It already distributed a payment of 0.0485 euros in November, and a second complementary payment of 0.0275 euros is expected in May. Regarding the repurchase, it has been divided into two tranches: a first of 841 million euros, and the second, following the guidelines launched by the bank, should reach approximately 477 million. Overall, Santander’s shareholder remuneration is 4.7%, but only 2.3% if you look at its payment in cash.
The profitability of payments has decreased due to the ‘rally’ of the sector in the year: Sabadell rises 32%
It is the only entity that has not published the exact amount of the dividend that will be charged to the 2021 accounts. To date, it has distributed -in two payments- 18 gross cents per title and a third is missing, which is expected in March. In total, and according to forecasts, the total dividend for the year could be around 0.24 euros, which yields 4.5%. What it does share with the former Malaga box is a payout ratio of 50%. Unicaja has announced the distribution of 69 million euros in dividends charged to 2021, which it will distribute in a single annual payment scheduled for May. This is equivalent to a payment per share of 0.0259 euros gross, which yields 2.8%.
, as previously announced, has the lowest percentage of remuneration, 30%, although it is not the least profitable for that. His payment, of 3 cents scheduled for the month of April, rents 3.9% at current prices. We must take into account the stock market rally that the sector is leading at the start of 2022 and, of these, Sabadell is the most bullish, with gains of 32%, followed by Caixa (27%), Bankinter (21%), Santander ( 12%), Unicaja (12%) and BBVA (8%).
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