Santander exposes its transformation process to investors on Tuesday

By: News Team

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Santander exposes its transformation process to investors on Tuesday

Banco Santander (BME:SAINT) brings together investors and international analysts next Tuesday in London to explain the transformation in which the entity is immersed and the strategy to be followed to achieve its main objectives until 2025, as well as the “pay out” or percentage of the profit destined to dividend.

This “Investor Day”, the first for the new CEO of the group, Héctor Grisi, takes place at a key moment for Santander, after closing 2022 with a record profit of 9,605 million, 18% more, and having met its main objectives, including improving revenues, profitability and solvency.

The group chaired by Ana Botín wanted its revenues to grow above 5% in 2022 and the advance was 6%; intended return on tangible equity (ROTE) to exceed 13 % by the end of 2022 and reached 13.4 %; in addition, it expected CET1 solvency to be close to 12 % and stood at 12,3 %.

On the other hand, the “pay out” was 40%, as promised, although the efficiency ratio, which sought to be around 45%, remained at 45.8% in an environment of high inflation.

By 2023, the bank has already advanced its intention for revenues to grow above 10% and efficiency to be between 44 and 45%, which would contribute to solvency remaining above 12% and return on tangible capital exceeding 15%.

These forecasts, together with the results of 2022, according to analysts, has contributed to the bank’s stock having risen about 25% so far this year.

In the meeting with investors, it is expected that the objectives of 2023 will be extended until 2025 and, as Botín commented in the presentation of results, another of the topics to be discussed will be the current “pay out” of 40%, with a remuneration policy that provides for half of the remuneration in cash and the other half with share repurchases.

Another important topic of the meeting will be the explanation given to the market of the bank’s transformation moment. In this sense, Botín has already highlighted the importance for the bank of global platforms, such as corporate and investment banking, high net worth or PagoNxt, among others.

The president of Santander highlights that all of them provide recurring income and a large volume of profits and allow a layer of global business that is subsequently activated locally through the teams in each country where the bank is present.

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