Edition:
United Kingdom

Santander Sees Mid-Term Annual Cost Savings Of 1.2 Bln Euros


Wednesday, 3 Apr 2019 

April 3 (Reuters) - Banco Santander SA ::REITERATES MEDIUM-TERM GOALS UNDERLYING ROTE 13-15 PERCENT, CET 1 FL 11-12 PERCENT.SEES MEDIUM-TERM DIVIDEND PAYOUT RATIO 40-50 PERCENT.GROUP WILL INVEST OVER 20 BILLION EUROS IN DIGITAL AND TECHNOLOGY OVER THE NEXT FOUR YEARS.SEES BRAZIL TO DELIVER AN UNDERLYING ROTE OF MORE THAN 20 PERCENT IN THE MEDIUM TERM.SEES SANTANDER UK TO DELIVER AN UNDERLYING ROTE OF 10-12 PERCENT IN THE MEDIUM TERM.WILL DRIVE ADDITIONAL IMPROVEMENTS IN OPERATIONAL PERFORMANCE AND CAPITAL ALLOCATION, LEVERAGING OPPORTUNITIES FOR SCALE AND EFFICIENCY LEADING TO 1.2 BILLION EUROS OF INCREMENTAL ANNUAL COST SAVINGS.SEES SANTANDER SPAIN UNDERLYING ROTE OF 14-16 PERCENT IN THE MEDIUM TERM, VERSUS 11 PERCENT ACHIEVED LAST YEAR.SEES MEXICO MAINTAINING UNDERLYING ROTE OF 19-21 PERCENT IN THE MEDIUM TERM WITH REVENUE GROWTH AND DECLINE IN COST OF CREDIT.SEES SANTANDER SPAIN MID-SINGLE REVENUE GROWTH, A DECLINE IN COSTS IN THE COMING YEARS AND A STABLE COST OF CREDIT.TARGETS A REDUCED EFFICIENCY RATIO OF 43-45 PERCENT.RODRIGO ECHENIQUE WILL RELINQUISH HIS EXECUTIVE FUNCTIONS AS OF MAY 1, REMAINING ON BOARD OF BANCO SANTANDER AND AS CHAIRMAN OF SANTANDER SPAIN.IN LATIN AMERICA, SANTANDER EXPECTS HIGH AND SUSTAINABLE REVENUE GROWTH (DOUBLE DIGIT CAGR EXPECTED IN CONSTANT EUROS).SANTANDER SPAIN CHAIRMAN ROLE WILL CONTINUE TO BE NON-EXECUTIVE FOLLOWING APPOINTMENT OF HIS SUCCESSOR.SEES UNDERLYING ROTE IN LATAM IMPROVING TO BETWEEN 20 PERCENT AND 22 PERCENT IN MEDIUM TERM.