Despite the fact that the Ibex 35 has once again surpassed its highs, and has done so again with enthusiasm this week and has reached double digits so far this year in this February that ends today, the truth is that Santander, despite the fact that the banks have handed over the baton of the fantastic advances to other companies so far this year within the selective, is positioned as the one with the best performance, even surpassing the Spanish selective in its efforts.
But, in addition to that, the presentation this week of the news at the entity’s Investor Day in London marks the most immediate future with new added value, as analysts have sensed after the expectations for Santander for the coming years.
Main news of Investor Day
Among them, let us remember that thanks to revenue growth at a mid-single-digit rate and a reduction in costs each year (which would place the efficiency ratio at approximately 36% in 2028), the bank plans to reach a profit of more than 20,000 million euros in 2028.
The bank will increase the payout ratio of the cash dividend to approximately 35% of the group’s profit from the 2027 results, and will allocate around 15% to share buybacks, and expects to more than double cash dividend per share in 2028 compared to 2025.
The growth of tangible book value per share plus The dividend per share (TNAV per share + DPS) will approach 20% at the end of the period.
Besides, The final dividend charged to the 2025 results will be 0.125 euros per shareand which must be approved by the board on March 17. If so, the total cash dividend per share charged to 2025 will be 0.24 euros, which represents an increase of more than 14% regarding the cash payment charged to 2024 (which reached 0.21 euros). The final cash dividend for 2025 will be paid on May 5, 2026.
To 2028, the bank expects to exceed 210 million clients, compared to 180 million at the end of 2025, which reinforces its position as the leading bank by number of clients in Europe and America.
After this, how much can Santander rise in the stock market?
The developments bring with them substantial potential improvements for the value, well received by analysts. The average consensus of market experts collected by Reuters is a buy, with 18 of them opting for this option with a target price of 11.41 euros and a possible advance of 3% from their current trading levels.
Alantra is one of the individual firms that has also repositioned itself. With neutral rating and 11.90 euros POwhich leads to a possible improvement in its price of up to 6.59%.
For Jefferies, the objectives set by Santander are also encouraging, but indicate that «the announced objectives are linked to the ambition of a ROTE greater than 20% by 2028, but we still need to clarify the assumptions that underpin these ambitions. While there is already guidance for the UK and the US, «We will be interested in understanding what the company expects for some of the other markets, particularly Spain and Brazil.»
They establish an improvement of 6% to 11.80 euros per share target priceand with a recommendation to buy their shares in the market.
Already from RBC, its analyst, Benjamin Toms, points out that investor interest is likely to focus mainly on the Spanish bank’s cost control efforts. He also expects the possible dividend payment to be a topic of debate.
From the Canadian bank, They overweight the shares of the Cantabrian entity with an OP of 12.25 euros and possible upward trend of almost 10% since its price at this time.
Already since Deutsche Bank puts 11.50 euros on the table, with a purchase recommendation on the entity chaired by Ana Botín. Barclays gives it less mileage, increasing efficiency is the key to success, according to its analyst, Cecilia Romero Reyes. The statements in this regard and the profit target of 20 billion euros in 2028 exceed market expectations.
And the maxim set by the signatures is fulfilled: this year lBanks in general will continue to rise, and Santander in particular, but they will do so to a lesser extent than in the extraordinary 2025.
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