The board of directors of BBVA has agreed to distribute an interim dividend charged to the 2023 results of 0.16 gross euros per share, which represents an increase of 33% compared to that paid a year ago for the same concept. . It is also the largest cash remuneration on account paid by the bank so far.
This strong improvement in remuneration responds to the record profit, of 1,846 million, obtained in the first half of the year. It is 39% higher than the same period of the previous year and is largely due to the new context of interest rate increases. The bank has achieved it despite paying 225 million euros for the new Government tax on financial entities and energy groups.
The remuneration agreed today, which will be paid on October 11, is announced one day after the Santander board approved a 39% increase in the interim dividend against 2023, in addition to a share repurchase plan. The entity chaired by Ana Botín will dedicate more than 2,600 million to both remuneration formulas and will also do so after achieving record profits of 5,241 million.
If Santander distributes 50% of the profits among shareholders, BBVA has placed this percentage, known as pay out, between 40% and 50%. Where applicable, the distribution is made in cash dividends, with the option of also including a portion in shares.
BBVA also intends to buy back its own shares for 1,000 million euros to improve the value of the securities and thus indirectly remunerate shareholders. It has already asked the European Central Bank (ECB) for permission to do so.
BBVA estimates that, between dividends and buybacks, it has already distributed 9,000 million euros since 2021 among its shareholders. The figure includes the remuneration announced today. The bank has about 800,000 shareholders.
