Santander Completes €1.825 Billion Share Buyback and Prepares to Reduce Capital
Key Facts
Banco Santander completed its share buyback program on October 28 after reaching the maximum investment of €1.825 billion, according to a filing with Spain’s securities market regulator. The program bought 150,595,100 treasury shares, equivalent to about 1.03% of the bank’s capital. Santander said canceling the shares will reduce capital by €75,297,550. This follows European Central Bank approval of the reduction on July 20, 2026, and shareholder approval at the meeting on March 27, 2026. The bank said the reduction was expected to be implemented close to the filing date.
After the cancellation, capital will amount to €7,202,943,850.50, divided into 14,405,887,701 shares, according to the filing. The bank links the move to a lower share count, saying it helps reward shareholders by increasing earnings per share. It added that the capital reduction will not entail a return of contributions to shareholders. The measure places the repurchased shares on a formal path to cancellation after the necessary approvals have been completed. The bank is due to publish notices of the capital reduction in Spain’s Official Gazette of the Commercial Registry and on its website in the following days.
The move is part of a series that began in 2021. Santander said the cumulative capital reduction through buyback programs will reach €1,632,300,019.50 once the program is complete. Since November 2021, the bank has bought a total of 3,264,600,039 shares, equivalent to about 18.8% of the shares outstanding that month. In September, the bank said the amount distributed or in the process of being distributed under its plan had reached about €9 billion, including the program that was still underway at the time. The plan targets distribution of at least €10 billion through share buybacks against 2025 and 2026 results. The current figures show the latest program has completed part of this broader shareholder-reward plan.
The program coincides with interim cash dividends announced by the board on September 29 against 2026 results, worth 12.7 euro cents per share. This payment represents an increase of 10% compared with the interim dividend paid the previous year and is due to be paid on November 2, 2026. The bank estimated total shareholder rewards against first-half 2026 results at about €3.7 billion. It said the amount is split roughly equally between about €1.8 billion in cash dividends and about €1.8 billion in buybacks, the program launched in August. Under the policy announced by the bank, starting with 2027 results about 35% of ordinary profit is expected to go to cash dividends and about 15% to share buybacks, subject to the necessary approvals and decisions.
The policy is underpinned by strong operating results the bank reported for the first nine months of 2026, when it posted record ordinary profit of €11,176 million, up 16% year on year. Revenue rose 8% to €46,807 million over the same period. Santander attributed revenue growth to an increase in customers, activity and volumes across its global businesses. It said its “ONE Transformation” program helped lift net operating income by 14% and improve the efficiency ratio to 42.6%. These figures provide the financial backdrop to the buyback program, alongside growth in profit and revenue.
Santander shares fell 3.3% to €10.895 on October 28 after the nine-month results were announced, according to an Investing.com report. The report said earnings per share beat expectations, while revenue came in below expectations. In a separate disclosure, EL7 data recorded SAN shares closing at 11.69 on the same day, without specifying the price currency. The bank maintained its 2026 targets, which include mid-single-digit revenue growth and lower costs in constant euros. It also targets profit above the €14,101 million recorded in 2025 and a CET1 ratio of between 12.8% and 13% by the end of 2026.
The next steps in the capital reduction include publishing the official notices, then completing the notarization and registration procedures. The bank said it will then request the delisting of the canceled shares. This procedural path places implementation of the reduction after the buyback has ended and the approvals have been obtained. The bank’s 2026 targets remain part of the context for dividends and buybacks, while the new distribution policy is tied to 2027 results. Santander has said the expected proportions for cash dividends and buybacks are subject to the necessary approvals and decisions.