Sunday, 19 May 2024
BusinessThe fury of share buybacks leads the Ibex 35 to spend more...

The fury of share buybacks leads the Ibex 35 to spend more than 22,000 million after the pandemic

A multinational banking company has historic profits and wants to please its shareholders by sharing them with them. A priori, one word comes to everyone’s mind: dividends. However, in recent years, another operation has been imposed in numerous Ibex 35 companies that has other consequences. These are share buybacks, in which, after the pandemic, the largest listed companies in our country have allocated an amount that far exceeds 22,000 million euros. A furor that began in the US and that has been multiplying in the rest of the stock exchanges, including the Spanish one.

A share buyback, as its name suggests, means that companies go to the market to acquire securities of their own company. They usually dedicate a part of their profits to this or if they have a certain level of liquidity that allows them to undertake these operations. In recent weeks we have seen several announcements of million-dollar operations in this regard. For example, Banco Santander has initiated a buyback with the goal of disbursing 1,460 million euros, charging its record profit from 2023, when it exceeded 11,000 million euros for the first time.

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