Banco Santander’s board of directors has announced an increase in its 2025 interim cash dividend to 11.5 euro cents per share, marking a 15% rise compared to the previous year. The total shareholder remuneration for the interim period will amount to approximately €3.4 billion, with half distributed as a cash dividend and the other half through the ongoing share buyback programme initiated in July.
According to the bank, about €1.7 billion will be paid as a cash dividend starting from November 3, 2025, while a similar amount will be allocated for share repurchases. The final distribution related to 2025 earnings is expected to be decided and announced in the first quarter of 2026.
Santander reaffirmed its plan to return at least €10 billion to shareholders via buybacks from its 2025 and 2026 earnings and excess capital, alongside regular cash dividends.
Ana Botín, Banco Santander executive chair, said:
"Santander achieved a record attributable profit of €6,833 million in the first half of 2025, a 13% increase versus the same period of 2024. The group continued to increase profitability and shareholder value creation, with a return on tangible equity (RoTE) of 16% (post-AT1); earnings per share (EPS) of €0.43, up 19%, and tangible net asset value (TNAV) per share of €5.50 at the end of June. Including the interim cash dividend from 2024 results paid in November and the final dividend paid in May 2025, total value creation (TNAV plus cash dividend per share) increased 16%. Santander’s share price has increased by more than 95% year-to-date."
For the full year of 2025, Santander is aiming for revenue around €62 billion; mid-to-high single digit growth in net fee income on a constant currency basis; lower cost base compared to last year; cost of risk near 1.15%; CET1 ratio at about 13%; and RoTE close to 16.5% post-AT1.
Since completing its current repurchase programme that began in July, Santander will have bought back over 15% of its outstanding shares since 2021.
The bank reported that these measures result in an annualized yield for shareholders exceeding five percent.
Santander’s CET1 capital ratio reached thirteen percent by mid-2025 due to strong organic capital generation.
The company’s share price has risen more than ninety-five percent so far this year.