Santander announced on Monday that it plans to launch a new share buyback program worth 1.46 billion euros, an announcement that was well received on the Madrid stock exchange, where its shares rose by more than 2%.

The Spanish banking giant plans to pay its shareholders a final dividend of 9.50 euro cents per share on May 2.

Taking into account this coupon and share buybacks, Santander states that it will have redistributed more than 5.5 billion euros to its shareholders for the 2023 financial year.

The group specifies that this remuneration corresponds to the distribution of around 50% of its group share of net profit generated last year.

At its February 2023 investor meeting, Santander had indicated that it intended to increase the rate of distribution of its profits to shareholders from 40% to 50% with the re-acceleration of its growth.

Earlier in the month, the Group unveiled solid fourth-quarter figures, prompting analysts to raise their earnings estimates.

Of the 28 research firms currently monitoring the stock, 17 have a buy recommendation, ten a hold recommendation and only one a sell recommendation.

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