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13th October 2017
Santander increases profitability target for 2018
Banco Santander has increased its return on tangible equity (ROTE) target for 2018. The target has increased from 11 per cent to over 11.5 per cent due to an improving economic outlook in a number of the Group’s core markets. The change in target has been confirmed at Banco Santander’s 2017 ‘Group Strategy Update’, which took place at the New York Stock Exchange.
Over the past 12 months, shares in Banco Santander SA have outperformed the market significantly, increasing by 54.3 per cent during the period compared to a 35.8 per cent increase in the Stoxx Banks Index. In July 2017 the Bank announced a 24 per cent increase in attributable profit for the first half of 2017, driven in part by particularly strong performance in Latin America as well as improvements in Spain and robust performance in the UK.
Ana Botín, Banco Santander Executive Chairman, said: “In the last 12 months we have made significant progress in earning customer loyalty and improving the quality of our business. We continue to see excellent growth in Latin America as well as positive trends across both Europe and the US. In the UK, while GDP growth has slowed, performance has been better than we had expected. As a result we have increased our profitability targets for 2018.”
During the strategy update Santander reiterated all its remaining targets for 2018, including targets to reach double digit growth in Earnings per Share (EPS) by 2018, and grow total and cash Dividend per Share (DPS), and Tangible Net Asset Value per share annually.
José Antonio Álvarez, Group Chief Executive Officer, said: “Our strategy is working and we continue to deliver on the commitments made to our shareholders. We are increasing loyal customers and progressing well with our digital transformation – maintaining our position among the most profitable and efficient banks in the world.”