Investing.com -- Spain's Banco Santander (BME:SAN) has announced an approximately 1.5 billion-euro share buyback plan and said it would hike its total annual cash dividend per share by 50%, sending Madrid-listed shares in the group higher on Monday.
The lender noted that it has received regulatory approval to begin executing these repurchases on Tuesday. Once they are completed by next June, Santander said it will have bought back around 11% of its outstanding shares since 2021.
Meanwhile, a final cash dividend of 9.50 euro cents per share would be put before stakeholders for approval at Santander's annual general meeting, which is expected to be held on March 22. If given the green light, the final 2023 cash dividend would clock in at 17.60 euro cents, representing a 50% jump versus the prior year.
In a statement, Santander Executive Chair Ana Botín said the bank is focusing on future growth while "increasing shareholder returns." She added that the company is "already seeing good progress in 2024" and is planning to hit its full-year return on tangible equity target of 16%.
In January, Santander outlined an improved profitability goal after strength at its lending operations in Europe and Brazil fueled record net earnings in the fourth quarter.