Santander on track for record earnings and plans £5 billion payout to shareholders

By Staff

The Spain-based Banco Santander group said it was in the midst of transforming to become a “digital bank with branches”

Santander is set to beat its record earnings from last year and plans to give over £5.2 billion to its shareholders.

The bank, which is based in Spain, said it’s changing to become a “digital bank with branches”. The update is being given to investors at a meeting in Madrid. The bank said it is on course to reach its goals for 2024.

It has got two million new customers this year, and that should increase revenue by around 10% compared to last year. It comes after a stellar 2023 for the bank which made a record profit of 11.1 billion euro (£9.5 billion). This happened because higher interest rates made it more expensive to borrow money.

Shareholders profited last year through dividends and buying shares back, which added up to 5.5 billion (£4.7 billion). But Santander believes it can return even more to shareholders this year.

Anna Botin, executive chair of Banco Santander, said: “I am very confident that we will deliver a considerably better performance in 2024 than 2023, which was already a record year, and will meet our 2024 targets.” She also said that if things go as planned, they’ll be able to give out cash dividends and buy back shares worth more than 6 billion (£5.2 billion) next year.

Ms Botin said that Santander’s retail bank has “embarked on a global transformation to become a digital bank with branches”. This comes at a time when banks across the board are increasingly moving towards online and mobile banking.

In fact, last year saw the UK’s main high street lenders announcing the shut down of hundreds of their branches.

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