In line with the Bank’s current shareholder remuneration policy, which establishes a shareholder remuneration target equivalent to 60% of the Group’s ordinary profit, together with the distribution of any excess capital above the 13% CET1 ratio, the Board of Directors approved the launch of a share buyback programme for 331 million euros.

This amount is in addition to the share buybacks executed this year amounting to 800 million euros, representing approximately 5% of the Bank’s share capital, thereby increasing earnings per share and dividends per share more than 5%.

Share buyback

A share buyback is a beneficial tool for shareholders for several reasons. For instance, by reducing the number of shares in circulation, future profits are distributed among fewer shares, meaning that each shareholder receives a larger portion of those profits.

In addition, companies that carry out this type of operation tend to have a better share price performance than those that do not.

Likewise, buybacks allow shareholders to benefit from the Bank’s strong results without incurring an immediate tax burden, unlike cash dividends, which are subject to taxation at the time they are received.