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HomeLatest NewsThe bank will distribute 7,600 million euros in dividends charged to 2022

The bank will distribute 7,600 million euros in dividends charged to 2022

Date: March 29, 2024 Time: 16:32:14

The sharp rise in the Euribor, which has gone from trading negative in twelve months to closing 2022 above 3%, will have a positive impact on the interest margin of domestic banks. This item will register an average growth of 10% in the fourth quarter compared to the previous one due to the reappreciation of the credit portfolio. And this increase will be enough for banks to confirm a profit of almost 20,000 million euros at the end of 2022, something not seen in the last decade, and that, together with an improvement in the CET 1 ‘Fully Loaded’ ratio (or in in line with previous quarters) will underpin shareholder remuneration. With some ‘pay out’ ranging from 20% of Banco Santander, not counting another 20% share repurchase, up to the maximum of 60% that Caixabank could reach, the distribution will mean that the banks will shower their shareholders with something more of 7,610 million euros.

BBVA will be the entity that pays the highest dividend. According to the consensus obtained by ‘Bloomberg’, the entity chaired by Carlos Torres will distribute 0.46 euros per share to its shareholders, which will imply a ‘pay out’ of 45%, in line with the entity’s shareholder remuneration policy , which contemplates distributing between 40 and 50% of the net profit. This amount means improving the payment of 2021, when the entity distributed 0.31 euros charged to 2021, which represented an increase of 50% compared to 2021 when it stood at 0.08 euros.

Analysts expect Banco Santander to distribute just over 2,350 million euros in cash to its shareholders. The consensus contemplates a distribution of 0.14 euros per share charged to 2022, compared to 0.10 euros charged to 2021. Banco Santander’s dividend is mixed. Although the entity has committed a ‘pay out’ of 40%, this is distributed equally in cash and repurchase of shares, so the cash dividend will represent 20% of the profit. Like BBVA, the entity already paid a first payment of 0.583 euros per share in November, which implied improving the equivalent payment in 2021 by 20%.

Caixabank’s strategic plan for 2022-2024 contemplated a ‘pay out’ of more than 50%. For this year, the consensus expects the entity to distribute 55% of the result to its shareholders, which will imply 1,773.3 euros. In the third quarter, the evolution of the Euribor and its impact on the mortgage credit review will make it possible to compensate for lower mortgage production. In this way, the Caixabank dividend in charge of 2022 will experience an improvement of almost 47% to 0.22 euros per share, according to the consensus, above, for example, the 0.18 euros calculated in previous estimates . In 2021, the payment was 0.15 euros.

This increase in the dividend will also benefit the shareholders of medium-sized banks. The consensus expects Banco Sabadell to allocate 40% of the profit to its investors, also raising the amount to be distributed from 2022. In this sense, the prospects for future capital improvements have allowed the entity to improve the percentage of ‘pay out’, since it was previously set at 30%. Thus, the entity directed by César González-Bueno will distribute 0.05 euros per title, compared to 0.03 euros a year ago. In this sense, in December it already paid 0.02 euros per share.

At Bankinter, the dividend forecast by analysts will grow by 29%, to 0.31 euros and will mean a ‘pay out’ of 50%. The entity has already paid 195 million euros on account of the results of 2022, 45% of its profit until September, for which another payment would be missing in March, while Unicaja will double the expected dividend in charge of 2022, since the Consensus expects it to be at 0.06 euros compared to 0.03 in 2021.

BBVA leads dividend yield

Taking into account the shareholder remuneration throughout 2023, which includes not only the dividends payable for 2022, but also those expected on account of this year -which in the case of Banco Santander, BBVA and Banco Sabadell will be distributed in the last quarter of the year- and its listing on the stock market, the bank will continue to offer an attractive dividend yield, enough to beat the inflation forecast for 2023. Funcas calculates that it will close 2023 at 4.8%, a percentage that will beat BBVA, Caixabank or Banco Sabadell, while the dividend yield of the rest of the Ibex entities will allow it to take a good bite.

Thus, for BBVA the dividend yield stands at 7.23%, while the estimated percentage for Caixabank remains at 5.96%. Banco Sabadell’s dividend remuneration would be set at 5.16%, according to ‘Bloomberg’ estimates. From there, the rest of the entities present a dividend yield below 5%, but above 4%. The order would be Unicaja, with 4.74%, followed by Banco Santander’s 4.62% and Bankinter’s 4.61%.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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