Spain's Santander said on Tuesday it intends to raise its return on tangible equity ratio (ROTE) for the period 2023-2025 to between 15%-17% from a current 13.37% on the back of higher revenues and interest rates in some of its core markets in Europe, such as Spain, and in South America.
"Where I think we really succeeded is communicating that the group has value, and this is really important," Santander Executive Chair Ana Botin told CNBC's Charlotte Reed Tuesday.
"The global Santander network … is really helping Spain, the U.S., the U.K., Brazil be more profitable and grow in a better way," Botin added.
The lender also unveiled in a presentation to the Spanish supervisor a new dividend pay-out policy for the period of 50% of consolidated ordinary profit, compared to the previous policy of 40%.
Santander proposed a final cash dividend of 0.0595 euros per share. As a result, the total cash dividend per share for 2022 will rise to 0.1178 euros, a rise of 18% compared to 2021. It also announced an additional share buy-back programme of 921 million euros ($974.79 million) after obtaining regulatory authorization.
The bank's shareholder remuneration against 2022 results would rise to 3.84 billion euros, split in equal parts in cash dividend and share buy-backs.
Botin said value would be coming from Europe in the coming years, with the U.S. and Brazil having created "huge value" for Santander's customers in the past.
"Diversification is very valuable to shareholders and customers," she added.
—CNBC's Hannah Ward-Glenton contributed to this report.