Core Viewpoint - Santander Bank has announced its strategic roadmap for 2026-2028, aiming to increase annual net profit to over €20 billion (approximately $23.6 billion) by 2028 and improve its return on tangible equity (RoTE) from 16.3% in 2025 to above 20% [1][2] Financial Targets - The bank plans to adjust its dividend structure, increasing the cash dividend payout ratio to 35% of profits while reducing the share buyback proportion [1] - Santander reported a record net profit of €14.1 billion last year, with analysts predicting an average net profit of €18.6 billion for 2028 [1][2] - A new cash dividend of €0.125 per share will be distributed, bringing the total dividend for 2025 to €0.24 per share [3] Operational Goals - The bank aims to achieve "mid-single-digit" revenue growth annually and reduce costs each year [4] - By 2028, Santander intends to improve its efficiency ratio to approximately 36% [4] Market Position and Competitors - Santander's current price-to-book ratio is around 1.5, with investor sentiment suggesting that share buybacks become less attractive when this ratio exceeds 1 [3] - The bank's profitability has significantly increased due to rising interest rates, and its stock price has more than doubled since 2025, making it the highest-valued lender in continental Europe [5] - Competitors like Intesa Sanpaolo and UniCredit have also updated their strategic and dividend plans, with Intesa planning to return approximately €50 billion to investors by 2029 [5]