Good morning, ladies and gentlemen shareholders. We are going to begin the general meeting of Banco Santander in accordance with the law and our company bylaws. The official notice of the call to the meeting was published on March 4th, 2019, on the webpage of the CNMV, on the Company Register Official Gazette, and in the webpage of Banco Santander corporate page. It was also published in the dailies "Alerta" and "El Diario Montañés." Notice to the call of this meeting was provided to the attendees when coming into the meeting and is available to you in the shareholders office and at the notary's desk. I must also inform the shareholders that the minutes of this meeting will be drawn up by a notary. For that, we have with us Notary Don Juan de Dios Valenzuela García, whom I woul uce to the shareholders.
Mr. Notary, could you please stand up? I give the floor to the secretary to report on the number of attending shareholders in this meeting that have the right to vote.
The share capital with voting rights is EUR 8,118,286,971, represented by 16,236,573,942 shares with a face value of EUR 0.50 each. The necessary quorum to duly convene the meeting on second call is 25%, which is equivalent to a subscribed voting capital of EUR 2,029,571,743, represented by 4,059,143,486 shares. In this meeting, we have a total of 758,299 shareholders, all of them with the right to vote. Out of these, 93,465 are in person and 664,854 are in proxy, holding a total of 112,186,000 shares, out of which 518,543,000. In other words, 3.196% of the share capital correspond to attending shareholders and 10,564,000. In other words, 63.10% of the share capital correspond to represented shareholders.
Therefore, in this meeting, we have shareholders that possess 68.505% of the shares entitled to vote. Out of the present shareholders, 92,166 shareholders holding 394,213,543 shares that represent 2.28% of the share capital are remote voters. They voted before the meeting. Out of these, 301,566 shares have cast their vote by delivery or mail. 18,000 shareholders who hold 92,276,806 shares have cast their vote electronically. Likewise, among the present shareholders, a total of 28 shareholders holding 423,683 shares that represent 0.003% of the share capital are attending remotely through telematic means that allow their connection in real time with this venue where this meeting is taking place. Remote voters who have voted before the meeting, as the ones that are voting remotely through electronic means, are considered to be present in this meeting.
In accordance with the information read by the secretary, we hereby declare validly convened this OGSM. From this point onwards, as per the call to the meeting and on our website, the shareholders who are remotely attending this meeting may exercise voting rights regarding proposals as to points 1 to 13, which the board would have this general shareholders meeting approve, as well as exercise their right to a consultative vote on item 14. Should proposals be made in regards to issues not included in our agenda, remote participants may cast their votes when the secretary reads said proposals. In any case, remote participants, regarding all the proposals, be they included or not in our agenda, will come to an end when after the secretary reads the summaries, and we begin voting commences in this venue.
The notary will take good note of the number of votes and their meaning, votes cast here, votes cast remotely, and will so report to the authorities so that they be taken into account with regards reporting on the results. I also would like to let you know that as of now and until the end of the time allotted, remote attendants may send via written form their intervention, their speech, their request for information, their clarifications or their proposals. As these written documents are received, they will be available to all parties present at the notary's desk, and remote participants will also be able to access them on the bank's website. Now, and to our legal effects, I give the floor to the notary.
Now, in order to not disrupt good order and notwithstanding the right to intervene of all shareholders, where they may make the comments which they deem appropriate for the consideration of the persons gathered here, whoever may have reservations or wish to protest the manifestations regarding the number of shareholders attending, share capital present, please come to the notary's desk who will take due note of these comments and observations, and will put them on the record. The floor goes to the notary.
Good morning, all. In accordance with Article 101 of the Trade Register, as notary of the board, I let the assembled parties know that should any shareholder wish to express reservations or protests regarding the manifestations as per the number of shareholders or capitals present, they may do so now. Thank you. We continue now with the GSM.
In order to carry out our meeting in an orderly fashion, we request all ladies and gentlemen shareholders or their proxy holders who are with us today, who wish to take the floor and who wish to request information or clarifications in accordance with the law to kindly identify themselves, proceed to the notary's desk, let him know your name and last name, the number of shares held or shares represented. Those shareholders who are off-site in any one of the areas or venues and who are following the GSM via the Internet may also wish to register and so request of the notary.
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Also available at the information points are copies of the annual report for 2018. You can also access via remote the website of the banks, where you will find said annual report for 2018, which includes consolidated accounts and the management report, also consolidated, which includes non-financial consolidated information together with the independent assessment report, the policy with regards retributions of directors for 2019, 2020 and 2021, as well as the annual report regarding remunerations of directors, which will be voted consultative and the yearly report for corporate governance. You can see that in the chapter called Corporate Governance in the addendum adjusted to the CNMV. Said annual accounts for 2018 includes reports from the Board's Committee, the Audit Committee, the Remunerations Committee, the Appointments Committee, and this includes the report regarding remuneration policies for the directors, as well as a report regarding related party transactions.
Thanks to the social media, we can also view on this said website the annual accounts, management reports, including non-financial information and audit reports for Banco Santander, S.A. and the group with regards to fiscal year ending on December 31, 2018. Finally, all of these documents are available at the registered office and on the bank's website, at least as of March 4th, which is when this call was published. Thank you so much.
Now we are going to hear about relevant information, reports that will doubtless be of interest. President of the Government of Cantabria, mayor, other distinguished guests, shareholders. Good morning. Good morning. Thank you very much for joining us today in this annual general meeting. 2018 has been a great year in which we have successfully completed the plan which we started in 2015. We announced then our strategy. A strategy based on customer loyalty and digital transformation. We have worked with a clear vision to strengthen the trust and loyalty of our people, of our customers, shareholders, and also the communities where we operate. With an aim to help people and businesses prosper. During this period, including last year, we have grown to become one of the most profitable and efficient banks in the world, and our balance sheet is even stronger.
All of this we achieved in a competitive environment for our industry, which is more challenging than expected. We are one of the few banks in Europe that has grown revenues since 2015. Customer revenues increased 24% in constant euros to almost EUR 46 billion. We have achieved this in a sustainable way, increasing the number of loyal customers by 44%, to close to 20 million, and almost doubling the total number of digital customers to 32 million. This is because we are nurturing talent by developing, making a more profitable result. Our attributable profit increased from EUR 6 billion in 2015 to EUR 7.8 billion in 2018, reaching an RoTE of 11.7% with an efficiency ratio of 47%, the best among our comparable peers. Today, we are even stronger.
We have exceeded our capital target for 2018, reaching 11.30% of core Tier 1 capital, maximum quality. Please remember that back in 2014, before that capital increase, it was an 8.27%. To summarize, apart from strengthening our capital base by EUR 18 billion, we have grown our business and its profitability, while delivering increased cash dividends per share paid to our shareholders, an accomplishment few of our competitors can claim in this period. Our strategy has produced results, tangible results. A motivated team can gain the trust of more customers, which in turn creates greater value for our shareholders and allows us to continue supporting the communities in which we operate. Today, the Santander team has a common culture based on the shared goal of always striving to do things in a simple, personal way, which joins us together, which changes the way we work.
We are now among the top three banks to work for in seven of our main markets, four more than in 2015. None of this would be possible without the great work of our people. The 100,000 persons, all of you, who are in contact with our customers, and the other 100,000 of you who make everything work from your support roles. Each and every one of you matters. All of you are important. All of you make a difference. Thank you for your commitment. Our success is based mainly on you. We nurture talent by developing initiatives to identify and reward the professionals who best represent this culture. Age diversity, for instance, we have our Young Leaders programme, which allows us to help 280 young persons develop, some of whom are with us today. Welcome to all of you. We've advanced in terms of diversity.
We want to be best practice. 55% of our workforce is women, but we only occupy 20% of the group's management positions. Here's a positive piece of information. Here in Santander Spain, today, we women are a majority among our regional directors, seven out of 13. By the way, Rocío Vielva Ramos, who is with us today, a territorial here in Cantabria. We rank at the top of the Bloomberg Gender-Equality Index. We know, however, that there is still much to be done. Our goal is that in the medium term, the number of women in management positions in the group be at least 30%. Of course, any evidence of a gender pay gap is eliminated.
We want to be the best bank for our customers. We want to create lasting relationships with them. We want Santander to be their primary bank. Today we have 144 million customers, 23 million more than in 2015. Delivering for our more than 4 million shareholders means ensuring that the money they have placed into our trust increases its value. Since September 2015, when we announced our strategy, total return to our shareholders is a 15% than the European Bank Index. With the approval of the fourth dividend in this meeting in 2018, we will pay shareholders a total dividend of EUR 0.23 per share. This represents an annual increase of 4.5% of the total dividend and 9% in the cash dividend.
Since we launched our strategic plan in 2015, our shareholders have received EUR 0.80 per share in dividends, which represents, in cumulative terms, including 2018, a return on investment of 18% of their total investment. Finally, this is very important, the market has not flourished, but in relative terms, the difference with the second-largest bank in Europe is 30%, 26 percentage points more than when we presented our plan in September 2015. These results allow us to further support the communities in which we operate. In 2018, we helped over 270,000 entrepreneurs in developing countries, and we continue to be the company that most resources devotes to supporting higher education in the world. We want, of course, to ensure that what we do today does not compromise our tomorrow, our future. This is why we proactively support a transition to a low-carbon economy and fight against climate change.
We are proud to be a leading bank in project finance for renewable energy projects, and the third bank in the world, the first in Europe, with regards terms of sustainability, and this is according to the Dow Jones Sustainability Index. Today, there are two new issues to take into account. We wish to eliminate all single-use plastics in all of our buildings in the world by 2021. Also, by 2021, we want to ensure that 60% of the electricity we consume stem from renewables, and 100% in 2025 in all of those countries where it is possible to certify the origin of power. Throughout 2018, we have continued to strengthen our internal governance. We have created the Responsible Banking, Sustainability and Culture Committee, whose Chairman and majority of members are independent.
We've also strengthened the independence of the audit committee, demanding this independence to all its members, and we have strengthened the role of the Appointments Committee with regards to corporate governance, which before pertained to another committee, in line with the new guidelines approved by the CNMV. Our Executive Committee has a majority of external directors, three of whom are independent, and this creates the right balance between its daily functions and the recommendation that the makeup should be similar to that of the board. As you know, in January, the Banco Santander board agreed not to continue with the appointment of Andrea Orcel as CEO of the group.
The board considered that it would be unacceptable for a bank, a retail and commercial bank such as Santander, taking into account our values and responsibility towards all our stakeholders, to bear such a high cost, the high cost of hiring one person, even of Mr. Orcel's talent. José Antonio Álvarez will continue in his role as Chief Executive Officer, as well as Vice Chairman of the Board, we will continue working together and delivering positive results as we have done during the last years. To accelerate the execution of our strategy, we have simplified our organizational structure. The main objectives are to increase collaboration and accelerate decision-making to generate more and more values as a group. These are the main objectives of this change. Our management focus will continue to be based in our 10 main markets, grouped now in three geographies: Europe, South America, and North America.
These will be led by Gerry Byrne, Sergio Rial, and Héctor Grisi, and Scott Powell. Finally, we are proposing today that Mr. Henrique de Castro be appointed as director. Henrique de Castro will support our digital transformation thanks to his experience in senior management positions in technology companies and his knowledge of the digital world and customer. Bienvenido. We want to ensure that the makeup of the board is balanced and diverse. We have a good balance between executive and external directors, most of whom are independent. 33% of the members of the board come from outside of Spain, compared with 7% of the board prior to my appointment. 33% are women. We want to go one step further, and we have set a goal that by 2021, the board has between 40% and 60% of each gender. 40% and 60%.
I think it's fair to say that we have achieved our three-year plan, all the while improving the bank for our customers, while also building all the while a more responsible bank in all areas. The bank of the 21st century has to be responsible. To earn the trust of all, the first step is to have a meaningful purpose. One, in our case, which is to help people and businesses prosper. This commitment as a responsible bank demands of us that we address two major challenges. The first challenge is the new business environment. The transformation of society and of the economy is unprecedented. We live in a competitive environment, we companies, that is changing. One that has all of us assuming greater responsibility. How are we doing this?
First, by even further strengthening our culture and the capabilities of our teams, building a more effective organization and a best-in-class corporate governance to ensure that we do contribute, that we do address these changes that society as a whole expects. The second challenge is to support and foster inclusive and sustainable growth. We want everyone to have access to financial services. This is a challenge, especially in Latin America, but not only there. In Latin America today, there are over 300 million persons who are not fully integrated into the system. We have set the ambition of financially empowering 10 million people from now on. Investing in inclusion and empowering people is the right thing to do, but furthermore, it is profitable. We will generate results in a responsible way while fulfilling our purpose as a bank.
Forward-looking, we are going to continue to elaborate on the strategy that we have followed during the last years. This is our best option looking forward. We want to accelerate our transformation, and we will do it as we have done so far. We will leverage our main strengths. Our global scale is the result of being leaders in our local markets. This allows us to face the many challenges of the future, but with confidence. This scale, together with our geographic diversification and our retail-oriented business model, allows us to generate more predictable results than our peers, while allowing us to continue to grow. For the next few years, we have set ambitious targets, always with the objective of growing our earnings and the tangible net asset value per share. We want to be more profitable and reach an RoTE of 13%-15%.
We want to be even more efficient and improve our cost-to-income ratio so that it be between 42%-45%, and this will drive us to generate more capital to reach our target of that 11%-12% fully loaded CET1 capital, while maintaining that announced strategy to increase to 40%-50% our dividend payout ratio. This plan is based on three pillars. We need to continue to improve our operational performance. In Europe, we operate in the region's most attractive banking markets. In the medium term, we want to become the leading European bank in customer experience and profitability. We are going to do so, leveraging even more shared services and technology across the group. As a result, we expect to raise our European business RoTE from 11% at present to 12%-14% in the medium term.
Obviously, we have the situation of Brexit, which continues to cause uncertainty. We have done all we can to prepare for the U.K.'s withdrawal from the EU, with or without a deal. Whatever happens, we will be there to support our customers. In terms of the integration of Banco Popular, it is progressing ahead of plan. We have already completed the integration of the headquarters, and the objective is to complete the full branch network integration in July 2019. The business is also progressing well with good growth in both SMEs and also consumer loans.
The U.S. represents one-third of the global financial market. But even more important for us, it has strong links with both Europe and Latin America, where we are the leading bank. During the last three years, we have made excellent progress in resolving legacy regulatory issues, while also strengthening the foundations for growth with an excellent team. Today, we have the base to generate profitable growth over the next few years and build a successful franchise, leveraging our scale and the strong links between the U.S. and the other geographies and businesses of the group. In 2018, U.S. attributable profit after tax rose by 74% in constant euros. Again, in the first quarter of 2019, it will be the geography with highest profit growth, more than doubling profits obtained during the last quarter of 2018.
Our target is to raise Santander US RoTE from the current 8% to 11% to 13% in the medium term, adjusted to a normalized capital level. In Latin America, which is a highly attractive region, we are the leading private bank. Our objective is to continue supporting the economic and demographic growth in the region and, as a result, further improve the group's growth and profitability there. Our aim is to raise combined RoTE of the region from 19% today to 20% - 22% in the medium term. First quarter of 2019 is a good starting point to reach these goals. Despite 31 basis points of negative regulatory impact with preliminary data, we closed the first quarter of 2019 with a higher than 11.20% CET1 according to that preliminary data.
The environment in which we operate continues to be complicated, we are growing credits and deposits, increasing the number of digital clients, and reducing delinquency rates. The CEO will further develop on this quarter's evolution. Today, we have announced our intention to buy the stake of minority shareholders in Santander México. We believe in México, in the potential of its financial industry, and the potential of Santander México, which today is one of the leading banks in the country. If all minority shareholders were to take up the deal, this acquisition of 25% of Santander México would entail an investment of almost EUR 2.5 billion that we will pay with new shares of Santander Bank, this deal would have a positive impact on the group's capital.
For our shareholders, this deal meets our strategic and financial criteria, has an attractive return on invested capital, allows to increase, in the future, the net profit of the group and the organic generation of capital. For minority Santander México shareholders, it is an opportunity to monetize their securities with an attractive premium of 14%, gaining exposure to a global, diversified bank, with growing results and more predictable than our peers. The second pillar of our plan is digital transformation, because gaining the trust of our customers requires, in the digital era, offering the best experience at any time, through any channel, and at competitive prices. We want to be the best global and open platform of financial services. For that, we are working on two roads in parallel, but coordinated.
On the one hand, transform our banks, our supertankers, as we call them, digitizing and automating all our processes and integrating new technologies. We can leverage our global scale and share the benefits of our investments to increase collaboration. Investing in digital transformation in a global way has already delivered efficiencies of EUR 680 million in 2018. In the medium term, our objective is to generate additional recurrent efficiencies of nearly EUR 1.2 billion. Out of these savings, EUR 1 billion will be generated in Europe and our net efficiencies compared to 2018 year-end, EUR 250 million will come from Popular. The remaining amount will be through the optimization of our technology resources and operations across Europe.
To generate even more value as a group, we have launched Santander Global Payments Business, a new global business unit that will manage the payments businesses of Santander Group: Global Trade Services and Santander Merchant Services. Payments are the basis of our loyalty strategy, this is a market expected to grow 9% annually. Today, we already have more than 80 million active credit cards worldwide and manage EUR 500 billion transfers and payments per year. Even more important, we already have 4 million SMEs and 1.2 million merchants as customers. At the same time, we continue developing new businesses with high potential. Our speedboats, which share their experiences with the large supertanker banks in the group, but also competing in new markets.
Openbank, our 100% digital bank, which as you know, was relaunched in Spain in 2017, has almost 1.2 million customers, but even more important, 38% of its active customers are loyal customers. This is not normal in these digital banks, there's a huge difference that sets us apart from all the other digital banks. In the medium term, we expect Openbank to expand to a total of 10 countries in Europe this year. Another successful speedboat is Superdigital, the financial solution for the millions of people in Latin America without access to traditional bank accounts. This business already has 500,000 active customers in Brazil, Mexico, and Chile, and allows us to serve this segment in a profitable way. We aim to reach 5 million customers in Latin America in the medium term.
The third pillar of our plan is to continue improving our capital allocation to drive further improvement in profitability. To achieve that goal, we have established more ambitious profitability targets by segment, increasing the thresholds of required profitability, and we have linked the variable remuneration of our management with the new capital and profitability medium-term goals. A little over one week ago, we announced our new strategic plan, which I have just summarized. Although we have to execute against a backdrop of continued and profound geopolitical, technological, and environmental changes, I am fully confident that we will achieve this plan. In Spain, the electoral campaign begins today. Like most of our citizens, I am proud of the country that I call home. A country that has come a long way in the last 25 years. Spain today has great strengths.
Among them are the Spanish people, but also some of the best public services in the world, and we have a great potential for the future. To safeguard our prosperity in the future, we need world-class education. I always say that education is not everything, but it is almost everything, and it has to be the priority. Whoever wins, whoever rules, we need a permanent commitment to education. To invest more in education, we need an economy that generates the resources to fund leading public services. A strong economy is the goose that lays the golden egg. We all want social justice and equal opportunities, but to get there, we must generate economic growth. The purpose is not just to grow, but to ensure that the benefits of economic growth reach everyone. In economic policy, we all know what works, and above all, we know what does not work.
What works is budget sustainability, an environment that support pensions for workers to have a decent life, but that in turn are sustainable. If we want to attract national and foreign investment, which Spain needs, institutional stability and strength are critical. Having an environment that supports entrepreneurs and investors who create jobs. We are, according to the economic data of 2018, one of the 20 full democracies in the world. If we want a Spain that works for all, we need an economic policy that works for all. This is why I would like to ask politicians to talk straight. I would like to ask them to speak straight, speak clearly.
After the elections, we need to flee from short-term measures and promote a reformist agenda with a long-term vision that fosters inclusive growth and social cohesion, which is only possible if business owners invest and create jobs. If recent polls are accurate, this will not be the task of a single party. We need an alliance for inclusive growth. It will be necessary to reach agreements between the different political forces. This requires a strong sense of responsibility and maturity. We know how to do it. We have proven it in the past. Spain must also regain prominence in the European construction, working for greater integration. Participating in the decisions is also our job. Building Europe has to do with national politics. Europe is the solution rather than the problem, and Spain is a European country.
The globalization, the digital revolution, the impact of the financial crisis, all of this has created a surge in support for policies and politicians who are questioning, and sometimes wish to undermine, the liberal economic order on which peace and prosperity in Europe have been built over the last few decades. Brexit is our canary in the mine, warning us of the dangers of ignoring these trends or dismissing the concerns that many millions of people have about their jobs. They're truly concerned about losing their job, their prosperity, and their future. Europe is not perfect, but it is the best model of proven democracy, a model based on an open and inclusive society and a market economy. Let us be proactive and share ideas to build an even better Europe. This will not be possible without a strong and profitable financial sector.
We know that in Europe, 90% of SME loans granted by the private sector comes from banks. Therefore, banks are essential to ensure that Europe continues to be an area of prosperity and sustainable growth. In order for European banks to continue to fulfill our mission, we need to complete the banking union and break the link between sovereign risk and the financial sector, ensuring we have regulation that successfully balances the need for caution with the need to ensure that companies have access to credit to invest in the future. Not permanently question the legal and regulatory framework are some of the pending tasks. Growing sustainably also demands tackling the digital challenge from a European perspective. We have the economic and human capital to not miss this train. Today, we are behind China and the United States. There is no higher priority for the new European Commission.
The aim should be to put technology at the service of citizens and not the other way around. We need a fair competition framework for the digital era to get there. Same activities, same rules in data processing, in taxation, in payments, in transport, in all sectors of the economy. Shareholders, we are a company that aims to endure. To do this, it is essential to have a vision and deliver results, but also to do that in a responsible way with a purpose that creates value that benefits us all. While we try to do all this, we do not forget Santander, our headquarters, our home city, a city that was reborn after the devastating fire of 1941. Thousands of homes and businesses burned down. Thousands of people were left homeless and lost their jobs.
Banco Santander supported the victims then, helping the city and its inhabitants to rebuild their prosperity. It donated money and was one of the main institutions that financed the reconstruction of the city. The fire that devastated Santander was a few meters from our headquarters in Paseo Pereda, which was safe from the flames. To ensure that this building, which dates from the beginning of the 20th century, continues to be one of Santander's symbols, contributing to the world's knowledge of its culture, customs, and people, we have begun its transformation. Soon we will present plans for a complete renovation of the Pereda building to the mayor's office. This will be a gift from the bank to the city and the region of Cantabria, a region that connected us in the past and will continue to do so in the future.
The new Pereda will be open to the public and will be devoted to culture and technology. It will offer the best restaurant and leisure options. It will be the meeting point for both inhabitants of Santander and tourists. An iconic protected building that will result in a space where the past and the future will meet and will be shown in an interactive way. It will be a contemporary venue and an experience that represents the principles of our bank and what we seek to offer our customers. I would like to thank Mayor Gema Igual and her team for their involvement in taking this important project forward.
I would also like to thank President Revilla and his team for their support. Both the Pereda and the project we're working on the building behind the Banco Mercantil building project, are symbols of our commitment to Cantabria and the city of Santander at a time of transformation and challenges for everyone. Our work is worthwhile when we see this impact. When we say that our purpose is to help people and businesses prosper, we mean it. Our commitment to this city and to Cantabria is an example of how we turn these words into reality. Thank you.
Now we give the floor to Mr. José Antonio Álvarez.
Distinguished authorities, ladies and gentlemen, shareholders all, good morning, and thank you for attending the annual general meeting. I am going to focus on three points. First, I will briefly look at the economic environment in 2018 and the main challenges that we face as a bank. I will then turn to the performance of the group's results, as on other occasions, the various units in 2018. Lastly, I will devote some minutes to discuss how this year has begun, 2019, and explain the drivers that will be used to achieve the medium-term objectives that we announced a few days ago at the Investor Day. Before beginning, I would like to express my appreciation to the more than 4 million shareholders who have placed their confidence in Banco Santander.
We have a solid project for generating value, which is based on profitability, efficiency, and innovation. Our goal is to keep on consolidating a long-term relationship with each and every one of you. I also want to address the more than 200,000 professionals who work for the group. All of them play a key role in the excellence of our results. Thanks to their commitment, dedication, passion, and effort, we continue to improve every day. I will begin by commenting on the macroeconomic context of last year in order to better understand the framework in which we carried out our business. The trend starts at the start of 2018. They were positive and gave us reason to be optimistic.
However, as the year passed, there was a change in market sentiment, and there were bouts of instability reflecting, for instance, the trade tensions between the U.S. and China, the lack of an agreement by the U.K. Parliament on Brexit, the orientation of Italy's fiscal policy, and some others of varying intensity, particularly in emerging markets such as Argentina and Turkey, and to a lesser degree, Mexico and Brazil, affected by their respective electoral cycles. This represented a greater slowdown in economic growth than initially envisaged. The Federal Reserve in the U.S. slowed the gradual rise in interest rates, the European Central Bank held its rates with Euribor rates negative for longer than previously estimated. All of this resulted, doubtless, on greater pressure on the financial sector's revenue. Despite all this, the countries where the group operates their business grew, with the exception of Argentina.
Although the performance is varied. To this macroeconomic context, we need to think about additional financial sector that we face. First, we need to digitalize in order to improve customer service, in order to adapt to multi-channel demands. This will boost customer loyalty and transactional levels, and thus, business productivity. This digital disruption has intensified competition in the last few years with the entry of the so-called fintechs in providing some financial services. Hence, the importance of establishing rules of fair play, which our chairwoman referred to, which are the same for all players, both regarding regulatory aspects as well as in the tax sphere. In this sense, we must use the best technology available to solve our customers' real financial problems and needs.
Although currently, this increased investment in digital transformation represents a further pressure on costs in the medium term, it will help us improve, and notably, our levels of efficiency, above all, by developing new products and services tailored to our customers' current and future needs. Second, there is the increase in regulation, which while helping make the financial sector more solvent in terms of capital, liquidity, and governance, must avoid excesses of bureaucracy and asymmetries translating into higher costs and a reduced competitive capacity for European banks in relation to other geographies. Additionally, progress must be made in creating a single banking market in Europe, which will enable the financial sector to achieve greater economies of scale, as the U.S. does, thereby improving the quality of services, cost, and thus profitability. There will still be mergers and acquisitions at the local level.
For the sector's consolidation at the pan-European level, in order to create strong, profitable banks with simpler structures and more nimble processes, we need to progress in this mentioned banking union. Thanks to Santander's transformation process over the past years, I believe, and I assure you, that we are in a good position to tackle these challenges and manage them proactively and efficiently. Shareholders, ladies and gentlemen, the Chairman has presented the group's performance over the past three years. I am going to focus on 2018. We generated an attributable profit of EUR 7,810 million, which is 32% higher in constant euros and 18.18% in euros at current prices, mainly due to the impact of the depreciation of the Brazilian real and the Argentinian peso. These results were impacted by non-recurring charges, largely related to integration processes in Spain, Portugal, and the corporate center.
The underlying profit, which is before capital gains and provisions, was EUR 8,064 million, with double-digit growth in the U.S., Brazil, Spain, Mexico, and Portugal in their respective currencies. As for the balance sheet, loans and customer funds increased by 4% in constant euros and rose in eight of the 10 core units, mainly in Latin America, as demand for loans in Europe remained relatively low. All of this enabled us to end 2018 with one of the best RoTEs of our peers and an RORWA clearly higher than that of 2017. In terms of value creation for shareholders, growth in the TNAV, that's tangible equity, together with a cash dividend per share, was 8% in 2018. Due to the already mentioned macroeconomic circumstances as well as sector-specific impacts, the share price performance was not as expected in 2018.
The total return for Santander shareholders in 2018 was clearly the best of its peers in the Eurozone. As regards the units and their performance, 2018 saw a constant improvement in profits and in the main metrics in almost all countries. I will begin with Europe. In Spain, specifically, the integration of Popular is ahead of schedule. We have completed, in 2018, the legal integration. We have unified central services and territorial teams. We now have a single platform, and we have begun to integrate the branch network. By the end of this month, we will have integrated some 600 branches in Galicia, Asturias, Cantabria, the Basque Country, and Catalonia. 600 branches, as I said, which represent 40% of the total. We aim to complete migration in July.
We recently reaffirmed the profitability goal we announced at the time of the acquisition, even though we have less interest rates and demand for loans than we envisaged at the time. We have not just devoted our efforts to integration. We have also continued with our new strategy of digitalization and transformation. We've strengthened our position in payments by mobile phone with the launch of Santander Smart Bank, which is a new way of relating to our more than 600,000 millennial customers, while showing good commercial dynamics in insurance, card turnover, and loans to SMEs. We are taking advantage of Banco Popular's notable position in SMEs to boost our market share in this segment, while remaining leaders in business with large companies and private banking. At the end of 2018, we had more than 17 million customers, of whom 4.8 million are digital. This is in Spain.
All of these actions are reflected in our results of EUR 1.738 billion, which is 21% higher than in the previous year. Santander Consumer Finance continues to be Europe's leading consumer finance entity. Its business model is based on geographic diversification, efficiency, and systems for risk and recovery that enable us to maintain NPL ratios and cost of credit at historic lows. We have progressed in optimizing, transforming, and digitalizing the area. As a result, we have grown lending by 7%, which is well above the market, which remains pretty well flat. We had high profitability and profit increase for the ninth year running to EUR 1.296 billion. In Portugal, we completed the integration of Banco Popular's business in an exemplary manner. This, thanks to the cooperation of teams in Spain and Portugal.
This process enabled us to boost our position as the country's largest privately owned bank by assets and loans in domestic business. All of this is underscored by good results. The underlying profit is of EUR 480 million, up by around 10%. Poland now is registering one of Europe's highest GDP growth rates. In this environment, we acquired the retail and SME business of Deutsche Bank Polska, which positions us as the second largest bank in the country. Furthermore, our bank, Bank Zachodni, adopted the Santander brand, modernized its branch network, and all the while continues to be leaders in digital banking. With regards to results, customer revenue was 6% higher and underlying profit is close to EUR 300 million.
Finally, against a backdrop of uncertainty over Brexit, business in the U.K. was carried out in an environment of moderate growth in terms of GDP and greater competition. In this context, the bank worked on installing the new structure as required by the regulator, which separates retail from wholesale banking, and this in order to minimize any disruption to the customers. Underlying profits in 2018 was impacted by the competitive pressure on revenue and by costs for regulatory, strategic, and digital transformation projects. In line with our strategy that focuses on customer loyalty and digital and operational excellence. As a result, it was 8% lower in local currency, and the number is EUR 1.362 billion. Looking ahead, we will be keeping a watchful eye on the various scenarios arising from the U.K.'s decision to leave the European Union.
Ladies and gentlemen, shareholders all, please be aware that we are prepared for all of them and that we will continue to give the best service to our customers. I will now turn to the U.S., which is in a more advanced phase of the economic cycle, with sustained GDP growth and unemployment rate at historic lows and inflation under control.
In this environment, 2018 was a great year for our franchise, as we began to reap the rewards of the efforts made in previous years in transformation, regulatory compliance, and optimizing the capital structure. We passed the Federal Reserve stress test, improved the trends in business volumes, promoting a strong increase in profit to EUR 552 million. I am very optimistic we will continue to significantly improve profitability, one of our priorities for the coming years in this geography. Lastly, in Latin America, a region that offers a high volume growth potential and strong banking opportunities, we have had a good year despite the depreciation of some currencies, mainly the Argentinian peso. Brazil enjoyed an excellent year, thanks to the growing strength of our franchise, a strategy focused on improving customer experience and satisfaction, and double-digit growth in loans and funds.
We gained market share in segments such as auto finance, acquiring, and cards. In less than four years, despite the country's tough recession, we doubled the profit in local currency to EUR 2,605 million in 2018 and increased the return on capital from 14% to 20%. There is still room to increase our positioning. Another figure to keep in mind: since 2015, when the strategic plan began, the number of loyal customers has risen by 65%, and the number of digital customers more than doubled to almost 11.5 million. In Mexico, a country that, like Brazil, offers considerable growth possibilities, we continue to strengthen our distribution capacity by investing in technological and digital development and in transforming the branch network. We launched many products and apps in order to respond to each segment's needs.
This produced a significant increase in loyal and digital customers, growth in business volumes of more than 10%, and increased capturing of payrolls, more than 500,000 in the year. Profit was up 14% in local currency at EUR 760 million as a result. As the Chairman mentioned this morning, we announced an operation to repurchase minority shareholder stakes in Santander México. This is a transaction which will allow us to improve the group's growth profile by investing in a country with good structural growth and high profitability. We estimate around a 15% return on investment in the medium term, above the cost of capital. Following this deal, Mexico will increase its contribution to the group's profit from 8%-10%. As we've been saying, Santander México is deep into an investment plan with the aim of improving operational capacity, mainly in retail banking.
Following the completion of this process, we will have a more competitive franchise with the ability to continue to gain market share. Therefore, we are optimistic regarding future prospects. We hope to complete this operation in the second half of this year. Chile continued to transform its commercial network with more Work Café offices and the launch of a new branch format in the fourth quarter. We also stepped up our specialized proposals such as Santander Live and Live 2.0, which offer customers a new way of relating to the bank. In a more dynamic economic environment, we increased growth in business with large companies and SMEs. Attributable profit rose 8% in local currency to EUR 614 million, driven by the good performance of customer revenue.
In Argentina, we carried out business in a complicated macroeconomic environment, marked by instability in fiscal and monetary adjustments, made in order to guarantee the country's future stability. In this context, Santander Río's business and customer revenue performed well, and we made progress in the digital transformation. This was not reflected, however, in the bank's profit, which fell 54% to EUR 84 million, as it was affected by the high inflation accounting adjustment. The profit of the units of Uruguay, Peru, and Colombia grew strongly, rising more than 30% in their local currencies, in aggregate terms leveraged on growth and revenue, and by the commercial transformation. I will end the 2018 review looking at our global businesses. Santander Corporate & Investment Banking, our wholesale banking business, focused on improving profitability and using capital efficiently.
We strengthened our leadership position in Latin America and Europe, developed our U.K. and U.S. franchises, and strengthened collaboration with our commercial banking networks. Profit increased 8% in constant euros to EUR 1.705 billion. At the end of 2017, we created the Wealth Management Division, which integrates private banking and asset management. During 2018, we improved our offering to customers in both businesses in order for them to be more global, better coordinated, and more based on each one's specific needs. The division's total contribution to the group's profit was EUR 1.015 billion, including the total fee income generated by this business, 13% more than in 2017. In 2019, an insurance business will join this division, a business that offers one of the banking industry's best growth prospects. Next, I will outline how we have begun the new year and the new medium-term strategic plan.
We are in an environment of reduced economic growth, as recently published by the IMF in its World Economic Outlook, which projects lower growth for 70% of the global economy in 2019. Additionally, interest rates in Europe lower than previously envisaged. In this context, and based on provisional figures, we have seen continuation of the trends with which we ended 2018. In business dynamics, the number of customers continued to increase. Of note was the more than 1.5 million rise in digital customers in the quarter. This is reflected in the growth in business volumes, both in loans and deposits, which grew by around 5% year-on-year. Of note were Latin American countries and loans, and rises in almost all countries in deposits. Furthermore, we are combining this growth with a good quality balance sheet. As a result, the NPL ratio continued to fall slightly.
Quarterly P&L is affected by lower wholesale revenues in a difficult market environment for the sector and due to the considerable inflation adjustment in Argentina. Excluding these impacts, we saw growth in customer revenue in line with expectations. Costs beginning to reflect the synergy realization from integrations in Europe, better operational leverage in the U.S., while keeping costs under control in the units where we are investing to increase distribution capacity, such as in Mexico. Cost of credit remained at the levels of the last few quarters, still below 1%. Finally, net charges totaling approximately EUR 100 million, which includes the current optimization processes that we're carrying out in the U.K. and Poland. Lastly, as regards solvency, we organically generated an estimated 20 basis points in the quarter, well above the average quarterly generation.
This gives us an optimum starting point for attaining the new medium-term goals announced at the Investor Day in London on April 3rd. The Chairman has just explained the main objectives and strategies of the main geographic areas. I will set out the main drivers we will use to achieve them. First, we want to improve our operational capacity and at the same time manage our cost base more efficiently, carrying out the ongoing integrations in an exemplary way and fostering the use of shared services, especially in Europe. Secondly, we are going to speed up the bank's digital and technological transformation. This is underscored by the heavy investment of EUR 20 billion over the next four years. We want to improve customer satisfaction and loyalty, increasing market share, and generate new revenue sources in order to achieve growth greater than that of our peers.
Specifically, we have set the following goals. Increase the number of loyal customers to 26 million compared to 20 million in 2018. 50 million digital customers. We had 32 in 2018. At least 50% of sales to be done online. This figure reached 32% in 2018. Number two, we want to make us one of the top three in customer satisfaction in all the countries where we operate. Strengthen the already existing global businesses, Santander Corporate & Investment Banking and Wealth Management, in order to foster cooperation between countries and generate greater transversal revenue. Develop our global payments service platforms. Based on our experience in Brazil, we will launch the platform for global merchant services in the rest of Latin America and in Europe. We will begin with Mexico this year.
We will also launch Global Trade Services, which will provide the best comprehensive services for SMEs and corporates, offering them products previously only available to large companies. Third lever, we will assign capital to the most profitable segments and businesses. Therefore, given the greater growth expected in the region, Latin America will account for at least 30% in the medium term. These drivers should be reflected in growth in net interest income and volumes of around 5% a year, increase in fee income higher than that in volumes, enhanced efficiency in order to continue being the sector's reference bank, maintain the cost of credit at minimum levels. As a result of all these actions, we are confident in reaching our underlying RoTE target of 13%-15%. The evolution of interest rates and monetary policy will determine in which part of the range we will be in.
Lastly, let me reaffirm our commitment to the group's employees. We aim to be one of the 10 best companies to work for in at least six countries, which will be reflected in more motivated and committed professionals. Our responsibility to society, fostering the financial inclusion of those groups with lower income. We will continue to offer them products that are better tailored to their needs and facilitate access to financial education. Our objective is to financially empower 10 million people with these initiatives by 2025. As we did with our previous plan, we firmly believe we will achieve these goals. The beginning of this phase is a new challenge for everyone. We will continue working to achieve a level of profitability, efficiency, and value creation in line with the market's demand and that of our shareholders.
Shareholders, ladies and gentlemen, thank you for putting your trust in Banco Santander. Next, we will hear from the Chairman of the Appointments Committee and the Remunerations Committee that will report to the board on the activities of these two committees, and more specifically, the proposals for re-election appointments submitted to the meeting, the remuneration policy of the board, and the other proposals in terms of remuneration that will be voted on. Next, the Chairman of the Audit Committee will take the floor to report on the activities of the committee, and more specifically, on the outcomes of the audit and how the committee has contributed to the integrity of the financial information that is presented for your approval under item number A of the agenda. I give the floor to the Chairman of Remunerations and Appointments Committee.
As in previous years, I will make my remarks in English and these will be translated. I'm addressing you, as the Presidenta has said, in my capacity as Lead Independent Director and also as Chairman of the Appointments and Remunerations Committees.
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Each of the committees has drawn up a report on its activities during 2018, which has been approved by the Board of Directors. In previous years, the reports were issued separately, but this year they have been included as part of the Corporate Governance chapter of the Consolidated Directors Report, which is part of the 2018 Annual Report and which has been made available to shareholders on the bank's website and at its registered office since the notice of this annual meeting was published on the March 4th. Both committees consider that their respective reports are transparent and that they provide comprehensive information on their terms of reference, membership, and activities carried out in 2018.
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In particular, the summary of the activities of the Appointments Committee is focused on the Group's selection and succession policy and the renewal of the Board and its committees, the succession plan for executive directors and senior management, the annual verification of the status of each director, the periodic suitability assessment of directors and senior management, including the examination of their potential conflicts of interest, and the oversight of the Group's internal governance.
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I would like to highlight that early this year, the Board decided to broaden the mandate of the Appointments Committee with respect to corporate governance matters, taking responsibility for functions that previously were the responsibility of the Risk Supervision, Regulation and Compliance Committee, according to best practice and, in particular, the most recent guidelines issued by the CNMV.
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For the Remuneration Committee, the summary of its activities is presented in relation to the remuneration of directors, other members of senior management, and other executives whose activities may have a significant impact on the risk decisions of the Group, as well as the directors' remuneration policy, to which I will refer later.
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The effectiveness of these committees during 2018 was considered as part of the overall internal assessment of board effectiveness carried out internally this year. The committees considered the findings resulting from the review and concluded that their performance in 2018 was satisfactory.
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With respect to item 3 on the agenda for today's meeting relating to the appointment and re-election of directors, the Appointments Committee supported the proposed election and re-election of these directors after having reviewed the Board's skills, requirements, and diversity goals and the Bank's continuing commitment to diversity and inclusion.
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I would like to draw particular attention to the proposal to appoint Mr. Henrique de Castro, who brings to the Board experience of the technology and digital industries, along with significant experience in the U.S. market, evidencing our commitment to attracting international experience and to introduce skills which are best aligned with the strategic objectives of the Group.
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With respect to gender diversity, the Committee has met its target of having appointed at least 30% of women onto the Board of Directors and has established a new objective that by 2021, the Board will aim to ensure that persons of either gender do not exceed 60%, nor represent fewer than 40% of the members of the Board.
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With respect to remuneration-related matters, the Board of Directors has recommended for your approval today items 9- 12 and item 14 on the agenda. For item nine on the agenda, shareholders' approval is requested for the Director Remuneration Policy for 2019, 2020, and 2021. This year, the policy is contained in the Consolidated Directors Report and is essentially a continuation of the 2018 policy. It includes, first, the remuneration of the directors for their roles, which is within the aggregate amount permitted for these purposes, and which is recommended for your approval under item 10 of the agenda. Secondly, the remuneration of senior executives for performance of their executive duties, which combines fixed and variable components.
The variable remuneration consists of a single incentive linked to a short-term variable remuneration plan, which is performance tested against the Group's annual business objectives, and a long-term variable remuneration plan, which is 36% of the total award and which is tested against the Group's long-term objectives and the payment of which is deferred over five years from the date of the award.
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In the opinion of the Remuneration Committee, which has been advised on these matters by independent experts, the remuneration policy, the contractual terms of the directors, and the specific remuneration of directors, are aligned with the group's financial performance and consistent with market standards at comparable companies.
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Item 12 on the agenda, shareholders approval is requested for the remuneration plans requiring the delivery of shares or share options. I would like to highlight the introduction of a Digital Transformation Award, which is intended to attract and retain the best talent to advance, accelerate, and deepen the digital transformation of the Santander Group, which is one of our strategic priorities. The Digital Transformation Award is aimed at no more than 250 employees of the Santander Group. Please note that the directors of Banco Santander are excluded from this award, and the award will only vest if key milestones are achieved.
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For item 14 on the agenda, we submit for your non-binding vote the annual report on directors' remuneration, which has been approved by the Board of Directors. The report has also been included in the corporate governance chapter of the consolidated directors' report. In light of the above, the Remuneration Committee recommends approval of the proposals 9 - 12 and proposal 14 on the agenda as submitted to this general meeting. The proposals have been made available to shareholders on the Bank's website and at its registered office since this general meeting was called. In addition, today, on entering these premises, shareholders were handed copies of the wording of these proposals.
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With regard to my activities as lead director, I have increased the number of meetings with the non-executive directors during 2018 to ensure that the views of independent directors are fully heard and represented, and I've also increased my interaction with investors and shareholders. In this regard, as I did last year, during the last few months, I have been meeting with institutional investors and analysts in Europe and North America, receiving their feedback and comments, in particular with respect to the effectiveness of the governance of the Group.
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Finally, I would like to comment on the process followed by the appointment of Mr. Andrea Orcel as Chief Executive Officer of the Group and the subsequent decision not to proceed with the appointment. This process began after Rodrigo Echenique announced his intention to retire as Executive Chairman of Santander Spain. The Appointments Committee and the Board agreed that José Antonio Álvarez was best placed to fill this key role within the Group. This, in turn, necessitated the appointment of a new CEO, and as a result, we reviewed the suitability of a number of internal and external candidates for the role.
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The Nominations Committee, the Remuneration Committee, and the Board, with the assistance of external advisors, were engaged in the succession planning to identify a successor for José Antonio Álvarez as Group CEO. The governance process was rigorous and progress was reviewed regularly, as is normal for a decision of this kind.
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The appointment was subject not only to relevant authorizations, but also to compliance with the provisions governing termination of Mr. Orcel's employment contract with UBS, and would in no event be effective before the January 1st, 2019.
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When we announced the appointment at the end of September, the Board agreed the future annual compensation which the new CEO would receive, which was in line with that of José Antonio Álvarez. At that time, it was not possible to determine the final cost of the Group's share of deferred remuneration paid to Mr. Orcel by his previous employer, which would have been foregone. The board therefore proceeded with the appointment on the basis of a considered estimate of the likely cost to Santander, based on advice, precedent, and expectations of mitigation due to the nature of the relationship between the two organizations, and very specifically because Santander has been an important client of UBS for many years.
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In January, the board decided not to proceed with the appointment of the CEO because the costs of compensating him would be a sum significantly above the board's original expectation at the time of his appointment. The board considered it unacceptable for a retail and commercial bank like Santander to pay this amount to hire a single executive, especially considering our culture, our values, and our responsibility to society in the countries in which we operate, regardless of the level of experience and seniority of the candidate.
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The board decided to proceed with the appointment. Shareholders would have had the opportunity to vote on the appointment and on the remuneration at this annual general meeting. I believe difficult decisions like this one demonstrate the strength of the group's corporate governance and the care the board takes to work in the best interests of the bank and its shareholders.
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Ladies and gentlemen, I would like to conclude by saying that the members of the two committees on which I have commented have worked diligently to set a high standard in the transparency of the information provided to you as shareholders. I hope that you have found it useful and easy to understand.
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I give the floor to the Chairman of the Audit Committee.
Good morning, ladies and gentlemen, shareholders. As the Chairman said, I will address you as Chairman of the Board of Directors Audit Committee. According to our bylaws and the rules of the Board, the Committee must report to the AGM under the development of its function, areas under its competence, and how the Audit Committee has contributed to the integrity of the financial information. Traditionally, the Audit Committee presented to the shareholders a separate report where we gave details on the most important aspects of its composition, functions, and most relevant activities during the year. This year, given the possibility granted by the CNMV of presenting it in a different format, the Audit Committee is one of the chapters of the annual report made available to you in the corporate page.
The consolidated management report includes in one single document reports that before were presented separately, like the Annual Corporate Governance Report, the Annual Remunerations Report, and the Sustainability Report, because we think it makes it easier for you to understand, and thus we avoid also repetitions. I also wanted to say that, of course, later on, the secretary will give you more information, but I will just add that at the beginning of the years, we changed the rules of the Board on two aspects. First of all, it was established that the Audit Committee must be made up exclusively by independent directors, something that was already happening, but it was not established as a rule in the Board's Regulation. On the other hand, the committee now must review not only financial information, but non-financial information as well.
That is the result of the entry into force of the law that changes the Code of Commerce, also changes in the Audit Account Law. The Audit Committee has been assessing its functioning in the past year, reaching the conclusion that it has carried out effectively its functions to support and advise the Board. In the annual report, we gave a brief description of the activities developed by the Audit Committee throughout 2018, grouping them around the basic functions that we need to carry out. Now I will give you a brief summary of the main aspects that you will see in more detail in our report.
In 2018, the Audit Committee met on 13 occasions, in which it spent 19% of its time to the annual accounts and financial information, 17% to the external audit, 34% of the time to internal audit, 11% to internal control systems in the group, and the remaining 9% to its other functions. Next, I will mention very briefly the most salient actions under each one of these functions. Firstly, with regards to financial information, after reviewing it, the Audit Committee reported favorably on the annual accounts and management reports of the bank and of its consolidated group corresponding to 2018. Accounts that later on are drawn up by the Board and that today are submitted for your approval under item 1A of the agenda.
The annual reports were reviewed by PricewaterhouseCoopers, external auditor of the bank, that issued its reports with an absolutely clean opinion, with unqualified opinion on the group and as well as on different businesses of the group. The intermediate financial statements and the financial information that as a listed company, we make available to the market, also received an unqualified opinion. The controller participates in all our meetings, therefore it is aware of how we stick to the applicable accounting standards. The committee was informed on the implementation of IFRS 9 standard in force since February 2018. This year, as a consequence of changes in the legislation because of the transposition of the EU regulation on the non-financial information and how we must report on it, we are also submitting to your approval under item 1B, our Non-Financial Information Report.
This information is part of the consolidated report where we give information on the business model, environmental and social aspects, personnel aspects, tax aspects, respect of human rights, or the fight against corruption. Lastly, with regards to the oversight of the process to draw up the financial information, in 2018, the committee was informed on the assessment and certification process of the internal control model of the group, and the conclusions on its effectiveness, where we did not detect any material weaknesses. In this regard, PricewaterhouseCoopers, in its report on the design and effectiveness of the internal control system, verifies its effectiveness. Secondly, with regards to the independence of the external auditor, the committee has checked that the different auditing services comply with what is required on this aspect and with the internal policy approved by the committee and by the board.
I also verified the percentages of the accrued fees for services other than auditing services, and also the fees paid by the group as a percentage of their total fees in the world of this auditing company. We also studied the related party transactions. After all this, we issued a favorable report on the independence of the external auditor. He was present in 11 of the 13 meetings of the committee held in 2018, which has allowed us to carry out the function of acting as a communication channel between the external auditor and the board. Moreover, on two occasions, the committee met with the external auditor without the presence of the bank's managers to learn about its concerns with regards to the audit work and examine the collaboration given by group employees in providing the information.
All of that has contributed to include the quality of the audit work as well as of the financial information that is made available to the market and to the investors. Moreover, the external auditor reported to the board on two occasions to present its report on the annual reports and quarterly information on June 30th. After three years in which Price was appointed the group's and the bank's auditor, the audit committee has reported favorably on the proposal to extend its contract to audit the accounts of the year 2019, which was raised to the board and is submitted today to your approval, item four of the agenda.
In this proposal, the committee has taken into account several factors, like the resources and experience of Price, the coverage of its network, its long experience, and the specific knowledge on new international financial information standards, its independence, the quality efficiency of the services rendered, as well as the information that they have provided on the different inspections. All of that according to what is established in our rules. Also, with regards to internal audit, I should point out that the heads of this function were also present in 11 of the 13 meetings held by the committee in 2018. Amongst other things, they reported on the internal audit plan for the year, its degree of execution, and reports issued, as well as degree of implementation and compliance of the recommendations.
The committee met with the internal auditor without the presence of other bank managers in order to analyze matters that have to do with the functioning of internal audit and make sure that it has the necessary resources to develop its functions. The committee has reviewed the application of the measures included in the internal audit strategic plan for the period 2016-18, and as a third line of defense, it wishes to contribute to the good governance of the operation and risk control. The committee, moreover, gave a satisfactory opinion on the development of its mission as internal control, independent of the business, as well as the performance of the global head of audit, which was communicated to the Remuneration Committee and the Board in order for them to determine their remuneration.
I should also mention that we received the information on the group's presence in offshore territories, verifying that we're still making progress in reducing these institutions as well as in controlling and supervising them. To comply with the good tax practices that the bank is a part of since 2010, the committee was informed by the tax personnel of the group on the tax policies applied by the group. I'm about to finish. I'd like to say that in 2018, the committee intensified its coordination with the Risk Oversight Committee, held joint meetings that allowed them to obtain an integrated view of the main risks assessed. Moreover, we've increased the coordination with the audit committee of the main subsidiaries.
Several of its chairmen participated in meetings of the committee, and I myself have had meetings with them in their countries in order to learn more about the different functioning of the committees and how they are aligned with the governance committee that rules the relationship between the parent company and its subsidiaries. I'd like to finish by conveying my satisfaction and that of the committee for the quality and extension of the information that was facilitated to all the shareholders for the purpose of this AGM. We believe that this new format of the annual report in 2018, which includes a consolidated report and the annual consolidated accounts, is a clear proof of our commitment to transparency with all our shareholders. Thank you.
Very good. We now have time for one-minute speeches. Among those present in person or by proxy, 39 shareholders have requested the floor. They will speak in the order they are called. The aim is that all of the requesting parties may make their one-minute speeches and, if necessary, request information or clarification as they may wish regarding the items or perhaps make proposals. I kindly request you to be clear and concise, and specifically, I remind you that you must limit your comments to those issues that are germane to this meeting. In my capacity and in accordance with Article 29 of my bylaws, I will direct the debate, and I will end it when I deem the issue to have been sufficiently discussed. At the beginning of each one of their deliberations, please let us know how many shares you own or you represent.
In compliance with Article 17 of the board bylaws, the time initially allocated to each one-minute speech is actually five minutes per shareholder. In view of the number of persons requesting, it is not mandatory to avail yourselves of those five minutes, but I do request that you stick to those five minutes, and I will let you know. Mónica Delgado Fernández.
Good morning, all. Madam Chair, directors, persons present and remote, I'm Mónica Delgado. I am here, and I represent 770 shares. The fact is, ma'am, I'm very happy with the results obtained by the bank. Because when I see the news, I have the feeling that the financial system is about to tumble down and there's no tomorrow. I see that the bank's results continue to be good.
Actually, in your speech, you have talked at length about the new strategic plan, the forward-looking plan for Banco Santander, but you have not made too many references to the past. Thus, I would like to ask you whether you are satisfied with the bank's compliance over the past three years, with the bank's performance over the past three years, which have been difficult. If you are satisfied, do you think that we shareholders can be certain that the bank is going to continue to comply in the future? Thank you very much.
María Teresa Echarri has the floor.
Good morning. My name is María Teresa Echarri. I just wanted to take the floor to thank the board of directors for having increased the dividend last year. I understand that the dividendo elección is very interesting because it allows us to decide what we want to do. Please, I just want to ask you not to ever forget about the small shareholders, because for us, the dividend is of the essence because we're getting nothing from our deposits. Thank you.
Thank you. Now the floor goes to Julián Arana Gandica.
Good morning, Madam Chair. I think we all know that the bank has a longstanding relationship with Latin America at all levels. For sure, our bank over there is a pillar, and that is a land of growth. Do you think this is going to continue to be the case? Do you think that we are not going to be affected by the political instability in these countries? I read this morning that we're going to buy the bank in Mexico. I think that if we think that Mexico is going to be successful, if we have a strong bank there, well, this might be a good investment. Having said this, could you please elaborate on how that transaction is going to be completed?
Thank you very much, Mr. Shareholder. I give the floor now to Mr. Manuel Huertas Terán.
Madam Chair, Directors, I come to this meeting with 4,700 shares. I'm here to congratulate you for canceling the hiring of the CEO to be. I think we have excellent people. You can do the job extremely well. We don't need anyone else. Yourself and Mr. Álvarez are doing an excellent job, thank you so much for not going ahead with hiring Mr. Orcel. I'm very pleased he is not here today. I prefer having you and Álvarez heading the bank. With you, we will have a bright future. Thank you.
The floor now goes to Ana Barrero López.
Good morning. I'm Ana Barrero, I am here today at this meeting as Director of the International Institute of Law and the Environment. I speak on behalf of this body, I speak on behalf of this and another organization, ShareAction. My question has to do with 1B, which is examination, if appropriate, approval of the consolidated statement of non-financial information for the financial year ended December 31, 2018, which is part of the consolidated directors' report. Law 11/2018 of December 28 regarding non-financial information and diversity, which this board has made a reference to, has increased the information which this report is to include non-financial. This information is absolutely essential if we are to know how companies behave with regards to environmental issues, including climate change, as well as risks that have to do with all of this.
My organization has carried out a detailed analysis of this information, which the group presents to the shareholders. I'm going to try to limit myself to the time allotted. Pages 65 and 66 address the issue of the financing of sustainable projects, 66 and 67 address environmental and social challenges or risks. This report, on a number of occasions, brings to mind that this bank has updated its sectorial policies, among them the one that has to do with power. In accordance with what Law 11/2018 mandates, information regarding the environment must contain information with regards current and foreseeable effects of activities carried out by companies with regards, among others, climate change, the importance of greenhouse emissions generated as a result of corporate activities. One of the activities of Santander is to provide products and services in the sector of power or energy.
Thus, this policy does not include clear criteria that would have it stop funding coal mining and power generation, carbon-based, despite the fact that some European banks have already implemented these criteria. Furthermore, Santander can provide services and products to existing customers who stop using coal-based energy and carry out transactions for coal plants if and when they reduce their CO2 emissions by 20% or achieve full compliance or not exceed 80 grams of CO2 per kilogram.
Despite the fact that the report includes clear examples of the financing of sustainable projects, despite the fact that you yourself, madam, have informed us at the beginning of this session that Santander is the first bank in financing or funding renewables projects, this report does not include information regarding the funding of projects that include fossil fuels, this is essential if we are to truly assess the threats to the climate as recommended by the task force on climate-related financial disclosures. For instance, in accordance with BankTrack's report, which is called "Banking on Climate Change," Santander destined EUR 14,973 million to projects that have to do with the life cycle of fossil fuels as of the signing of the Paris Agreement.
I would request, Madam Shareholder, that you please limit yourself to the five minutes. You have one more minute.
Thank you. Let me summarize. The report includes information regarding the contribution of this bank to the 2020 sustainable development objectives. Now, members of the board and shareholders, please remember that climate change affects all of us, yourselves included. We are none of us free. Furthermore, decisions to be adopted today, as well as decisions to be adopted on a daily basis, affect the future of the bank because climate change is affecting the financial sector as well. Do not forget. Here come the questions. What projects have been or will be financed by Santander that will continue to affect greenhouse gas emissions? Second question: how has Santander measured the climate threat that it is exposed to upon funding these types of projects in accordance with legislation and in accordance with recommendations?
Third question: how is Santander contributing to achieving the objectives set forth by Agenda 2030, and what are the indicators? Finally, fourth, will Santander inform about the material impact of the updating of its policy regarding funding, keeping in mind who the current clients are? Will Santander determine stricter measures for existing clients? Thank you very much, and I thank you especially for having allowed me to go over the timeline.
Thank you very much, Mrs. Shareholder. I give the floor now to Kuka Gogolewski. Kuka Gogolewski, are you in the room, sir? It's your turn now.
Hello. Good day to everyone. My name is Kuka Gogolewski, and I represent an organization, a coalition that is called Fundación Desarrollo . In Spanish, it would be Development Yes. The name, I think, says it all. I do not agree with the chair on the number one priority for the EU Commission. For me, and for people younger than I, the number one aim is climatic change. Two companies in Poland extract 60 billion tons of coal a year. The Polska Grupa Energetyczna, PGE, a state-owned company that produces electricity, and they have lignite plants, and this is what they use as a source of energy, lignite. Actually, they're thinking of operating new mines and they continue to mine coal. Why am I saying this? The World Bank is financing both companies, and it is financing these companies and other companies that also pollute.
My question is, what is going to happen? What is going to be the energy policy in view of climatic change? Today you talked about cybersecurity, development, and a commitment with the communities where you operate, but I haven't heard much about climatic change, and I think this is one of the great challenges that we're facing. I already sent you my questions, which are: when will Santander Bank have a policy that is in line with the need to reduce greenhouse effect gases at a global scale with a clear timeline, with details? What are you going to do to contribute to make sure temperature does not continue to increase? When are you going to publish a strategy to gradually reduce emissions?
I think that your competitors in several of the markets where you operate already have clear plans as to how to gradually reduce these actions that contribute to the rising of temperature. When are you going to publish information? When are you going to have a policy that establishes that the companies that pollute will not be financed? When will the bank publish a policy that will forbid to finance companies for projects for lignite or coal plants in the world? Thank you. I hope to hear good answers from you.
Thank you, sir. The floor to Clara Pardo.
Good morning, ladies and gentlemen, Madam Chair, members of the board. I represent 39,493 shares as president of the ONG Manos Unidas. I'd like to say thank you for allowing me to address all of your good selves today. I want to say thank you to Banco Santander. Thank you for your help to the needy. Manos Unidas is an NGO. The Catholic Church established us, and we are 60 years old this year. We have been working 60 years in 60 countries with some 600 projects yearly, which literally change the lives of a 1.5 million People every year. We also raise awareness in Spain regarding hunger in the world, which affects over 821 million persons. This is according to the FAO.
We insist on how important it is for companies such as Santander, who must continue to responsibly assist in the achievement of a fairer world, a better world for all. Corporate social responsibility is today a linchpin of any company because it responds to societal needs, it responds also to the needs of large and small companies who are to continue to contribute in social, economic, and environmental terms. We believe that Santander, for years now, has been doing its job, thus the relationship between Santander and Manos Unidas is a very close-knit relationship. We have been working together for years. If my memory does not fail me, it began even before the Santander built its CSR policy at the end of 2002, it has been kept alive over years.
In 2018, Manos Unidas received funds and assistance from Santander, basically from the Fondo Santander Responsable Solidario, to launch a number of development efforts, EUR 500,000 in countries such as Peru, India, El Salvador, Cameroon, Nicaragua, and Spain. Practically 50,000 persons have benefited from these actions. The scope of these projects does not respond to one single pattern: battered women, youth, human rights, health, education. Once again, thank you, Santander. I would like, this is my question, I would like to know what the criteria are by the bank to back NGOs and to launch their commitment. Thank you.
Thank you, madam shareholder. I give the floor now to Mr. Antonio Javier Calzado Aranda.
Good morning, madam chair, members of the board of Santander Bank authorities. Dear shareholders who are following the meeting here in person in the Sardinero Room, and I would also like to greet those of you who are following this meeting in the Cantabria Room and the Bahia Room, the adjacent rooms. My name is Antonio Javier Calzado Aranda, and I own 5,000 Santander shares. I come from Ciudad Real. This is the first time that I attend in person a general shareholders meeting of the bank. I have traveled 1,300 km to come here, and I feel very frustrated because I've had to hear the speeches of the Chairwoman and CEO through a screen.
For that, I could be very comfortably sitting in my living room, as many shareholders are doing so, the ones who are following us online or via streaming, because they decided to do that that way. I decided to travel the 1,300 km to be here in person. I asked about all the procedures that I had to fulfill. I asked the Santander branch, and I also consulted your Relations with Shareholders Office. I called, and they told me I only had to come with a letter of invitation. When I came here, I was told that I could not sit in the main room, that the room was full, that I should have reserved a seat. I think they could have warned me about this, either at my branch when I asked about attending this meeting, and also when I called the Investors Office.
I want to ask you, are there class A and class B shareholders? Do we have preferred shareholders and other types of shareholders, second-class shareholders? Madam Chair, in your speech, you asked that the government that stems from the elections should do its work with responsibility, thinking about society and guaranteeing social cohesion. I would like to ask you, Madam Chair and members of the board, that equally you should also treat all of us in the same way. We shareholders, the owners of the bank. This is the most important body of the bank, the Shareholders Meeting. Please guarantee that all of us who fulfill the requirements to attend this meeting have the right to do so with the same conditions and with the same rights as any other shareholder.
I ask you, Madam Chair and members of the Board, that you implement the mechanisms that can guarantee that people will have the same rights when attending this meeting. Perhaps you need to increase the number of seats or meet in a larger room, but we should all have the same right to sit in this main room in this beautiful city. To finish, Madam Chair, in your speech, I understood that the next government in Spain will be formed by more than one political party, not by a single political party, as has been the case for many years. I, as a citizen, would like to know if you have information that the rest of us are unaware of to make that statement that the next government will be a coalition government or will have components from more than one political party. Thank you.
Thank you very much. I'm going to answer you on the go. Thank you very much for having come. I hope it's the first but not the last time you join us. I know that Ciudad Real is very far away. Has larger venues, I think not, but we are definitely going to take a close look at those criteria because you are right. You have come from a long way, and you deserve to be treated fairly. As to elections, I do not have any information which other Spanish citizens have or don't. The floor now goes to Mr. Hans-Martin.
Thank you. Chairwoman, fellow shareholders. My name is Hans-Martin Bühlmann. I'm talking here, and I'm being here not as an NGO, but VIP. VIP Association of Institutional Shareholders, and I try to keep content from shareholders. We are a bank. Banco Santander is a bank. It's in many aspects, one of the biggest, one of the most important banks, not only in Europe. What you told us this morning, Mrs. Botín, was so positive, so nice, so happy. Where is my share price? Share price is decreasing and decreasing. You have to change this. You have to talk about the share price. You have to take note of our share price, your and our share price. You rise up RoTE by 50%, you told us in the midterm.
If you increase the profitability of the bank by 50% in two, three, four years, don't forget the share price. The bank had a CoCo Bond. A CoCo Bond is not a coconut. A CoCo Bond is a famous tool to finance. A CoCo Bond had always a certain strategy and follow-up. You changed the market issues. Why did you do this? Did you offer our reputation, or do you want to change the CoCo Bond attitudes? You change things, and one thing you changed is a very good one. Some of the speakers coming from NGOs did not yet remark this, I think. The committee you invented, I have to look for the papers to quote it correctly, is the Responsible Banking, Sustainability and Culture Committee. Talk more in public, not only today. Talk more about this content. You are doing even business with it.
You issued a green bond for a client together with an Italian bank. You had done this very successfully. Perhaps you are looking for further banks. I, as you remark, certainly coming from Germany. There are a couple of banks on the market in different colors, perhaps becoming red. Just an offer for a comment. Andrea Orcel. That's only a name. Andrea Orcel was a banker. He was disclosed in September by Banco Santander to come. I asked myself, did Santander change the strategy of the bank? Do you want to go investment banking? Please point it out, make it clear. Do you change the bank in this way? Wanted you, wanted somebody change the bank in this way?
If you would not have been the January this year, if you would not have disclosed not to pay EUR 50 million to somebody who had not yet worked any day, just as a welcome pay, you would have been whipped away, everybody on the Board. It's good that you stopped, it's a mega disclosure accident that you disclosed what you disclosed in September last year. That's not a family and friend decision to choose a new CEO. The Board is like a democratic government. All the Board is a democratic government. Lead it, sure, by fair and lead. Now we have José Antonio Álvarez. Welcome back. You will be with us for a certain time. You have a certain period, we have to look every day on the internet if you are there. You will go digitalization.
Sorry, Mr.
I will not take more time. I will not raise this question, I give you the chance to talk about with two small remarks. Stop meddling. Start business in the Board. Experience and know-how is like a grain outgrowing new wisdom. Hopefully, increasing share price. Thank you.
Thank you very much, Mr. Shareholder. The following shareholder to take the floor is Mr. Álvaro Vicinay Múgica.
Good day, everyone. I'm Álvaro Vicinay, and I own 1,001 shares. Madam Chair, I heard in your speech that you talked quite a lot about responsible banking. I think it's excellent that you take advantage of the size and position of your organization to have a positive impact on society. I love being a shareholder of this type of company. Often we read in newspapers that large companies like the one you lead, pay very few taxes in comparison to small businesses or individuals. I understand that this might be misleading. I think that the bank already pays quite a lot, and that is money that does not reach shareholders. What I would like to know is if you can explain how much more we pay in taxes. Thank you.
Thank you very much. Now the floor goes to Manuel Argente Benedicto.
Good morning. I am going to try to speak very briefly, just three or four very clear questions. First, let me say that I also come from far away. I come from Zaragoza, which is not as far as Ciudad Real. I too was surprised. I came with lead time, and I was surprised. I wasn't able to enter this venue. I also watched you on TV. I have a question, Madam Chair. All of the persons in this hall right now are shareholders? That's my question. If not, well, what is going on? Are there persons there who are sitting where shareholders should be seated? I didn't think of posing this question. I thought it was germane. Now, even though we've heard specific information from the CEO, I'd like to ask about the onboarding of Banco Popular.
We've heard that everything is coming along well. I'm a small, tiny shareholder. I'm also a customer of Banco Popular. When are we going to know whether that merger is complete, whether that migration of accounts and deposits and so on, when is it going to be complete? I'm going to focus here. One of the items talks about the recent change in the organizational structure of the bank. It says that there's been a change. What does this actually mean for small shareholders in Spain, specifically? I see here, specifically, another one of the items, item 12. It says, "Approval of the group's bid house." I don't know what that is. It seems to me that that's like a leveraged buyout. I wonder, is that good or bad? Who is it good for? Who is it bad for?
Is that going to be good for us small shareholders, or is that only going to be good for big shareholders? 12E, I see. It says, literally, "Plan for employees of Santander UK Group Holdings, PLC, and other companies of the group in the United Kingdom." It says, plan for employees. What about Spain's employees? Is there a special plan for Spanish employees? I'm not seeing Spanish employees mentioned there. It just says U.K. Finally, this is my final question, item 13. It says, and I read, "Authorization to the board of directors to interpret, remedy, supplement, implement, and develop the resolutions approved by the shareholders at the meeting." When I read this, I said, question mark, question mark, question mark. I'm reading it. I'm not in agreement with it. I put that down in writing.
Agreements taken at a meeting of this kind, any meeting, well, I understand that the meeting is a sovereign element. Is somebody going to censor what we're agreeing on? I think that that's outrageous. That's my contribution. Thank you.
Thank you, Mr. Shareholder. I give the floor to San Jose La Estazanto.
Good day, Madam Chair. I want to congratulate you because in Santander, we no longer see any sign from Banco Popular. It is gone. The former shareholder asked the question I was going to ask you about the integration between Banco Popular and Santander. Could you give us more details, because it is something that does concern us here in Santander, the integration of Banco Popular. I have another question still. Is it true that the bank is going to bring to the headquarters in Pereda Street, the collection, the wonderful painting collection that you have at Banco Urquijo? If so, congratulations to you, because you have chosen two magnificent architects for the restoration of these two buildings, that of Santander and that of Mercantil Banco.
Thank you, sir. The floor goes to Francisco Javier Martín Sánchez.
Good morning, Madam Chair, directors, shareholders. I am Francisco Javier Martín. We shareholders focus on the share price and the dividend. Last year's dividend was fine. The share was not that fine. My question is, Mrs. Botín, what does the future hold for our share? Do you think that the strategy presented, do you think it is really going to help the share price go up?
Thank you, Mr. Shareholder. I give the floor now to María del Carmen Gracia.
Good day, Madam Chair. I want to congratulate you for your work and for being a woman leading such an important bank. I just wanted to know if it is true that you are unable to get a good return for the money you make, because I read on the internet that a great investor does not invest in this bank because they think that you are unable to make the most of the money you have in order to make the share an interesting asset to buy.
Thank you, ma'am. The floor goes to Mr. Javier Valero Quirós.
Good morning. Good morning, Mrs. Botín and the directors. I'm Javier Valero. Madam Chair, ever since you are at the helm of the bank, there have been two capital increases, 2015 and 2017. That was for the acquisition of Banco Popular. In 2015, that was during the Christmas season, suddenly, and small shareholders could not participate. In 2017, we could. I think that we cannot complain about the facts as they are, because dividends have gone swimmingly. I'm not really sure what the numbers are, but over the past three years, I know that the results have been good. The share price, of course, could have been better. Santander is a haven. I'm asking. Thank you.
Thank you, Mr. Shareholder. I give the floor to Mr. Javier Blancas Irabo.
Hello, my name is Javier Blancas. I come to this meeting representing ADICAE, small savers, customers, and retail shareholders of Santander. Banco Santander is listed at EUR 4.38 per share, EUR 2 below what it would be if we distributed the net worth of the bank among all the shares. In February 2017, it was also EUR 2 below its book value. That was also the share price of Popular. Are the accounts that you're announcing and publishing today, are they as reliable as those of the Popular? PricewaterhouseCoopers is now being looked into as an auditor of Popular, and you're using exactly the same auditor. Should we be worried? Here it refers for a provision for risk of litigation because of the acquisition of Banco Popular for EUR 1.
It's referring here to the process, the ADICAE is part of this process in court, and it mentions the difficulties to value the risk. It's not difficult to value the risk. Popular closed their annual accounts with a net worth of EUR 5.7 billion. That is a net worth that Santander bought for EUR 1, taking away that net worth from the Popular shareholders. In the Deloitte report, it was said that Popular could not go on with its activities as a bank because it would lose its license. Nevertheless, a Deloitte report at no time clarifies what was the true injection of capital that Santander had to do in Popular because in the other bailouts in Spain, many banks have been bailed out with a fraud. Taxpayers have lost a lot of money.
In the case of Popular, with the intervention of Santander, the next year, they have a net worth of EUR 5.7 billion. Those things don't match. The shareholders of Popular should be today among the shareholders present in this meeting, and they were not offered for an exchange of shares. It was a ridiculous offer for those shares that were acquired in 2016. That offer was just to avoid further trouble in court. It's not only the Popular shareholders that have suffered by Santander, also the customers of Popular. In page 560 of the annual report of Santander, it mentions floor clauses, and you will pay those that are admitted. Well, the claim presented regarding floor clauses, Popular did not pay back any of that money. It says here this money is to pay for claims. These claims will be lost. These were never paid by Popular.
What the annual report does not say is that in the procedure of a class action suit in November 2018, the court in Madrid ruled in favor of consumers. In March 2019, it clarified to all the banks that it was not going to admit clarifications and that they had to appeal to the Supreme Court. The question is Santander going to appeal to the Supreme Court in this class action suit for the floor clauses? Also, there are other customers affected because they were charged for certain fees when asking for a loan, et cetera. The court said that that was not acceptable. What are you going to do in that case, too? Thank you.
Lastly, I'd like to remind the board that if you want to attract shareholders among your customers, the reputational image, the solvency image of the institution is tarnished if they don't pay their claims.
Thank you very much, Mr. Shareholder. The floor goes to Mrs. Ana Cebreros.
Madam Chair, ladies and gentlemen of the board, ladies and gentlemen, shareholder, good day. I'm Ana Cebreros Ruiz, and I am here also as a representative of ADICAE, and I represent small owners and shareholders who have delegated their votes. There's a number of issues which we believe to be essential and which we believe have to be dealt with by this board. First, the share price, which is at EUR 4.48 per share. The theoretical book value of the share, should we divide the net value among the number of shares, would be EUR 6.61 per share. This negative valuation that investors have agreed upon does not say much for the reliability of the amounts discussed today. In February 2019, the Instituto de Contabilidad y Auditoría de Cuentas has taken Pricewaterhouse to court for the Banco Popular accounts in 2016.
Excuse me, I am confused here, says the speaker. The person who addressed us before confirmed that this is the same consultancy that is in charge of Banco Santander accounts in 2019. Further in the annual report, we hear about provision to prepare for possible litigation in the case of Banco Popular, and the amount is EUR 1. We are involved in the criminal suit or where we see that there are thousands of persons affected and the contentious portion, which is in the hands of ADICAE and its partners, underscoring the difficulties in assessing this risk. Well, this is a very straightforward risk to assess. If we look at the Banco Popular numbers for 2017, net worth was EUR 5.700 billion, despite the activities in 2016, where the net worth was EUR 10 billion.
That amount is what Banco Santander has snatched in exchange for EUR 1 from its shareholders, over EUR 5.7 billion. Shareholders of Banco Popular are not the only ones who have been adversely affected by Banco Santander. If we see the annual report with regards provisions, it specifically says that provisions. In the case of litigation, the calculations will take into account the number of claims to be received, and among those that are admitted. Banco Popular has not admitted or solved any claim for floor clauses in accordance with legislation of February 17. We cannot understand how this has happened. The annual report does not make a reference to 471/2010 of Madrid regarding the class action suit brought to court by ADICAE.
In Madrid, a judge sentenced in favor of the customer, ratifying that initial sentence and incorporating retroactivity as set forth by the European Court of Law. In 2019, there has been a foregoing of all of the claims set forth and involving banks. We wonder whether we will or will not be taking this to court. Apart from floor clauses, we have to talk about different fees, which have not been taken into account. Banco Santander and Banco Popular, both in the face rather of Banco Popular, ADICAE has also brought class action suits which have not been taken care of, and thus we have to bring new cases to court. We wonder whether the board of Banco Santander wants to attract shareholders among its customers.
Insofar as it does not pay closer attention to potential claims, this situation is going to continue to adversely affect the image of the company, the image of the banking group. Thank you.
Thank you very much, madam shareholder. I give the floor now to Mr. Julián García-Caballo.
Thank you. Good day, madam Chair, and shareholders, directors. In your speech, apart from giving us different indicators and figures, which were very good indeed, you referred to something that caught my attention, but you divided it into two parts. I understood that you have 200,000 employees. Did I understand you correctly? 200,000 employees. Many provincial capitals don't have that many inhabitants. If everyone from Santander, children and retired, had to work for the bank, we would be missing thousands of people. We couldn't complete your staff. It's a very significant number, and I think that very few companies can brag that they employ so many people.
Of course, we are in a global world, in order to maintain this type of company, I know there's a need to hire many people, and we're competing with many companies who are hiring talent, like Google and other companies that are, as I say, attracting talent. My question is, what is the bank doing to attract that talent to the bank? More so taking into account that the banking industry cannot be considered as one of the most attractive sectors for this type of talent. What is the bank doing to attract these very good employees, talented employees? You also talked a lot about women. I'm very grateful for that because I am the father of several daughters, and of course, I want my daughters to have a brighter future. You made some projections and gave us some ratios regarding women.
That's all good and fine, what actions are you taking to make this happen, so that you can reach those indicators of the participation of women in your company? Wanting to do it is very good, I guess you need an action plan to achieve it, so that women who truly have the potential can get as high as men. Thank you.
Thank you. Thank you. Thank you, sir. The floor goes to Carolina Rueda.
Good day to all. Firstly, on behalf of the Fundación Oso Pardo, thank you to the bank for allowing me to address this audience. Secondly, I would like to ask Mrs. Botín a very specific question regarding the environment and biodiversity. We know that some human activities affect the biosphere adversely. The biosphere belongs to all and to future generations too. We human beings can also contribute to recovering habitats that seem to have been lost. We can help species that were about to go extinct to recover life. This is the model of action, which is encouraged by the Fundación Banco Santander because they participate in the recovery of Villablino in León, a mining region, also looking at the habitat where brown bears live in the Pyrenees.
We have a network of small forests, which is based on vegetable species, contributing thus to the increase and diversification of the nutrients for brown bears. We, at the foundation, believe that the bank has contributed so much. We thank the bank, we thank other organizations in our country. Thus, I would request to Madam Chair that you please consider that this is very important support that you provide to us. Please do not interrupt it. Thank you. Thank you.
Thank you very much. The floor goes to Miguel Ángel Vásquez.
Madam Chair, board, suffering shareholders, good day to you all. My name is Miguel Ángel Vásquez García. 182,303 shares I own, shareholder of Santander for 60 years. I was also affected by the integration of Banesto the bankruptcy of Banesto. During all these years, I have never sold a share, a single share, I have always participated in the many capital increases carried out by the bank. I'm going to give you the stick and the carrot. The carrot is in favor of the bank. The bank is not at all guilty of what happened at Popular. I was a great shareholder, 200,000 shares I owned, I don't blame Santander. Who was to blame? Whoever authorized the deal.
Nevertheless, when we talk about the stick, you are governing for a fund that is called BlackRock, you don't watch out and look out for shareholders, minority shareholders. You're only looking out for those investors. Ever since you became Chairman after the death of your father, may he rest in peace, I miss him very much. When you became Chairman, the shares of Santander were worth EUR 7.70. Today, the share price is EUR 4.52. Yesterday, EUR 4.48, which means a loss of EUR 2.85 per share. Now, that loss is not offset by the dividends during your period as Chairman. Do you think it is fair as Chairman, do you think you and your board of directors should earn what you make? I think you should lower your salary by 82.5%, which is by how much our share price has gone down. Three times you've increased your salaries.
You apply 200%, the maximum that is applicable for the bonuses. The recommendation from the official authorities is 100%, not 200%. It wouldn't matter if we had lots of profits. That would be fine, we're not getting very good profit, and you are getting paid as much as you're allowed to. When you took office, you did two capital increases, and minority shareholders were excluded from that increase. We had the no pre-emptive rights, and our dividend went from EUR 0.60 to EUR 0.20. In other words, a third of what your father gave us, arguing that you were going to give it all in cash, which has not been the case after having done seven scrip dividends ever since you are Chairman. I, of course, underwrote these. I have no problem in doing so. Iberdrola, for example, or Repsol do it differently.
They always make sure that the share price does not lose value. At Iberdrola, their share price is worth the same, and they do a scrip dividend. The share price does not lose value. The same thing can be said about Repsol. Repsol gives it all in cash, no scrip.
Mr. Shareholder, please, you need to finish up.
Just a second. Don't worry. We've heard lots of silly things said, and they spoke as much as they wanted. If you don't like what I say, that is not my fault. Just a second, I lost my paper. What can I tell you, Mrs. Botín? I prefer EUR 0.60 dividend that your father gave us than the EUR 0.20 that you have been paying out lately. Although it has increased a bit this year. Thank you for listening to me, fellow shareholders. Please, watch out, look out for the minority shareholders. One day you will need them. One day you will have to resort to retail shareholders. One day that BlackRock fund won't support you anymore.
I always liked it that the board of directors was involved in shares, and that they should be paid more in shares than in cash. To increase your bonuses and salaries, you need to make more money for the bank. The shares were multiplied in number. The return per share went down. The last year, when your father was Chairman, we made more money as shareholders than what we're making now, and what we've made all these years together.
Please, Mr. Shareholder, you need to finish up. I gave you an extra minute. Please finish.
I really am very upset that I am cut short because this happened to me at the Bilbao bank AGM. Trade unions are given as much time as they want. NGOs are given as much time as they want. We shareholders are not given enough time. No, we give you exactly the same amount of minutes as all the others. There were people here who were talking for 10, 12 minutes about silly things. That's not fair, and things that have nothing to do, like the bear. What's next, talking about dogs? We're here to talk about things that affect the bank, to defend retail shareholders. I defend them when they are right. Like with the Popular. It was Ron's case, not your fault. It was his fault. The Chairman of Popular's fault.
Please, we can continue with this conversation on some other occasion. You say very interesting things that I can have a response to. You know me well from Banesto. You know me well, right? We've already had this discussion in Banesto's meetings. Dialogue is always useful and constructive, but we need to respect everyone. Your father visited me, and that's for a reason. I will visit you, too. Thank you very much, Mr. Shareholder. Thank you. Very good. Now Sergio Serrato has the floor.
Good day to all. Madam Chair, members of the board. I'm here to congratulate you for your management of the bank in Brazil. This is a very difficult country, and you're making a lot of money. We know it's not easy. Thank you. We have to acknowledge your hard work. I have three questions. Two have to do with Brazil, one has to do with your recent announcement about actions in Mexico. First, could you please explain how we achieve these outstanding results, and are they going to be outstanding, and long-lasting in Brazil? Secondly, even if we grow more there, can we expect the bank to continue to be balanced and diversified? Please, could you explain a little bit more what the Mexico transaction entails?
Thank you, sir. I give the floor to Santiago Álvarez Barón.
Good day, Members of the Board and Chairman. My name is Santiago Baron, and I represent 207,000 shares. Santander is a brilliant bank, and that is why I would like to mention two things that I'd like to hear a response from you about this. Because I am aware of how complex these two subjects are. Money laundering, that's the first thing. I have sent the secretary an article referring to. It says, "This is how some multinationals cheat on the tax authorities." A liquidated company cannot have any economic operations. It cannot have any banking accounts. It says that a company liquidated in 2010 had two current accounts opened until very recently at Santander Bank.
Despite the fact that it was liquidated, they were paying through those accounts to their suppliers. This liquidated account is from The Carlyle Group that recently bought a significant stake in Cepsa. The Santander Bank, it seems, had no knowledge that that company that had accounts in the bank was liquidated. Based on that, the Santander Bank will cross-check its information with the tax authorities to ensure that this doesn't happen again. My second point is, accounts that were opened at the Banco Central Hispanoamericano do not have the opening contract. Years ago, an account was opened at the Central Bank. Then it merged with Hispano. Then it was absorbed by Santander.
The bank says that it must be taken into account that during that time, the bank has gone through several mergers, and there have been lots of migrations of branches from one local premise to another. Also, during the past few decades, there has been a notorious change in which the contracts are documented. We've gone from physical paper to digital. Consequently, there's some old data that the bank no longer has control over. They don't have this data. Are you going to do anything about this? The Santander Bank, how does it solve these situations where there is no opening contract? There are more cases. Santander, doesn't it scan all the new and old documents? We support the Santander Bank. We want it to continue to be an international benchmark, I think these things are not very good for our great bank. Thank you very much.
Thank you so much. The floor now goes to Miguel Ángel Hernández Marco.
Good morning, ladies and gentlemen, Madam Chair. My question has to do with the objectives and strategy of the bank in the USA, which you have made a reference to in your presentation. I know that our bank has improved over the last few years, has improved its performance in the U.S., I have the feeling that we still have our work cut out for us to be one of the relevant banks there. Are we able and in a position to grow, and how, if so? I think that the U.S. economy is very important, I think that it's also very important to be a strong bank in order to be able to leverage that economy. This would be perhaps a piggyback question. Are you ready to enter the U.S. economy? How are we going to do it?
How is this going to affect the bank globally? Thank you very much.
Thank you, Mr. Shareholder. I give the floor to Mr. Óscar Fernández Montoya.
I'm sorry. I was in the other room. That's why I'm a bit late. My name is Óscar Fernández. I represent a group of handicapped people who work in the tax agency, a service acquired by the company Connecta in July 2018, a company that belonged until December 2018 to Santander Bank. My question is about the group of disabled people that I belong to. The Connecta company back then belonged to Santander, they laid us off without meeting Article 19 on the Law of Public Jobs. We asked for explanations, and we have not been given an answer, neither as a shareholder nor as a former employee of that company. The only response we've had was that of the High Court of Justice ruling that we were right, a ruling that was sent to you, still we've received no response.
After sending you the ruling in our favor, these shares were sold, the shares of the Connecta company, I mean. Can you tell us whether it was based on the ruling of the High Court of Justice so as not to relate the Santander Bank in this very shameful event? Last year, you gave Ignacio Treviño, somebody I know and somebody who represents a group of disabled like myself, he came here last year to praise the work of Santander. I cannot praise your work. We are a small group, 100 families, and all of them are not as fortunate as I am. These people have not been able to collect unemployment benefits. The company did not comply with Article 131 on public contracts. These people have not yet paid these employees.
Banco Santander, although it is no longer related to this company, are you going to do something about this? Is your performance going to be as shameful as it has been until now regarding this matter? Thank you.
Thank you, sir. The floor now goes to José Antonio Ruiz Iglesias.
Hello. Good morning. After hearing these very interesting comments and presentations, I have a question regarding how shareholders are actually paid. This is for Madam Chair. Before I do anything else, let me share my thoughts with you. I think it's clear that as of your taking over the position you hold, which is in September 14, you are keener to focus on cash dividends, not scrip. Some shareholders apparently like this alternative. I personally, and I'm not alone, I would prefer a cash payout. I can understand that this encourages the purchase of shares, not only in the case of international investors, but also in the case of minority, such as myself. Which should, I think, have us understand that what is most important to us is the share. Well, that share price should grow. Apparently, this is the change that is in the wind.
Having said this, my question is as follows, this is a question for Madam Chair. This type of cash dividend, basically, is it going to be a priority for the bank? Secondly, as a follow-up question, how would this strategy fit into what you have presented recently in London during the Investor Day? Thank you.
Thank you, Mr. Shareholder. I give the floor to Benigno Bueno Gutiérrez.
Good day. As I was there lining up to sign in order to be given the floor, I saw some of your slides. I focused on the one from Openbank. I agree with what you said. Openbank is efficient, simple, agile. When you need someone's help in Openbank, they're very good professionals. I have to say, I agree with what you said about Openbank. That's not the reason why I asked to take the floor. The reason I wanted to take the floor is to talk about the hiring of Mr. Orcel that was already mentioned here. I think that this has given a lot of discredit to our institution, particularly after the explanation that we heard today from Mr. Carnegie-Brown. It looked like a game that was going on between the two.
I understand that the first step to recover the prestige that we have lost, which is so important for a financial institution, is that you, Chairwoman, should present your notice. If you don't resign, there will be the opinion among people that the personal for you is more important than the professional side of things. That is going to hurt our share price, as some shareholders have already mentioned. Madam Chair, I think you should consider resigning to regain our reputation, tell Mr. Carnegie-Brown that he has had enough time to address this meeting for many years. We are in Spain. You should speak in Spanish. Audience, it's English, please. Thank you.
The floor goes to Mr. Felipe Izquierdo.
Good morning, ladies and gentlemen, shareholders. I'm Felipe Izquierdo. Members of the board, I would like to say that with regards the items on the agenda, I have nothing to say, although I would underscore that there is something which is important and which I believe you are not dealing with appropriately. This is actually the way you treat the minority investors who participated in the capital increase in May 2016. Banco Santander knew that the bank was not a sensible alternative. We heard that as a consequence, Santander cannot say that it did not know of the fact. Those investors were tricked. We know today that the accounts were, at the very least, grossly incorrect. In July 2018, the chair of that bank said things such as Banco Popular lied. It was disastrous. You have no liquidity issue if you have credit worthiness assumed.
Also with regards accounts in April, that reformulation was launched by Uría Menéndez, and the result was that not everything was clear and above board. Seven courts have sentenced in favor of the minority shareholders. I know because I am the lawyer who actually filed suit for the first time in Spain. I am also the lawyer who has been successful in a suit in Barcelona. It is because I am familiar with procedures. This is why I request of you that you please turn your management style upside down. Madam Chair, I respectfully but forcefully request this of you. You are damaging current and potential customers. That damage calls for a quick reaction. We see that it is a break-off.
At the very least, we could say that it is odd that the lawyers hired by the bank, that bought the bank for EUR 1, defend the solid nature of those accounts. Remember, the law firm was Uría Menéndez. One of our great philosophers said that we need to be persuasive. We need to be right. We need to know the law. Definitely, on this occasion, the bank is not right. It does not know the law. Again, please provide a feasible solution, accept that you will have to pay. Thus you will recover the trust and the confidence that has been lost by shareholders and by the market in general. A case in point, the amount my client claimed was EUR 28,000. Santander has taken this all the way up to the Supreme Court of Spain.
Just in lawyers' fees, the amount to be paid is much less than what has been paid to those lawyers. If you extrapolate to 1 billion, we will see that the bank will have to pay over EUR 2 billion. The bank knows it will have to pay for that. Please, ladies and gentlemen of the board, do not do what ostriches do because the problem will only get worse. When you want to react, it will be too late. The bank will be cornered. It was in your hands to avoid this. Tempus temporis. Wait and see. Thank you very much.
Thank you very much, Mr. Shareholder. I give the floor now to Mr. Luis Hoyos Perote.
Good day. My name is Luis Hoyos. I am a shareholder. I am from Cantabria, and I have been a customer of Banco Santander for many years. I wanted to ask you that in all the AGMs, you always talk about how important diversification is, and geographical differences, and presence of the bank with a footprint in many countries. I confess that when I travel abroad, and that is very often, I'm very pleased to see the amount of new branches that are being opened abroad, and how much the bank is growing abroad. Now, what really concerns me is the profitability of that geographical expansion outside our borders. If that profitability will remain the same, and if so, what are you doing to increase that profitability so that all those businesses that we have abroad and other geographies are truly profitable for the bank?
On the other hand, I would like to ask if you are going to continue with the dividendo elección, which I think is a good choice. I like it. Are you going to continue with that policy? That is all. Thank you.
Thank you, sir. Now the floor goes to Pablo Hernandez Santrapaga.
Good morning, Madam Chair, members of the board. The more recent results of the bank show that profits are good in Latin America. Furthermore, in the report, I have read in the chair's letter that countries such as Mexico and Brazil, there are microloans, microcredits, to persons who have very low income levels. This is great. This speaks well of you. As a shareholder, I wonder, how do we strike a balance? We understand that those persons who have less are certainly assisted by these types of products, but is this good for the bank and for shareholders? Thank you.
Thank you, Mr. Shareholder. I give the floor to Ignacio Belilla Muguruza.
Hello, my name is Ignacio Belilla Muguruza. I own 13,378 shares. Madam Chair, directors, first of all, I want to congratulate you for meeting the plan of the last three years. I wish you lots of luck in order to meet your target set in the new plan, because if you do well, we will do even better. I wanted to ask you about the share capital of the group. I know that after the crisis, all banks are now forced to have more capital to avoid cases like Bankia happening again. I do know that the capital target was one of the priorities of your former and your new plan. That is why I would like you to explain the developments in terms of capital, specifically, and if we shareholders can feel comfortable or if we will have to be asked to contribute again. Thank you.
Thank you, Mr. Shareholder. The floor goes to Eduardo Martín-Duarte Rosa.
Good morning. I'm sorry. I was out in the doghouse, and I had to run here. I have to say hello to all bank employees. Hello to managers, directives, executives, members of the board, Madam Chair. Now, we talk about social management. I want to say that I want to address the following issue. I would like you and the entire board to be removed from your positions, more especially yours, Mr. Benjumea and Mr. Echenique. I would like you to be removed. The last time this meeting was held, I addressed a fraud to the tune of EUR 50 million because of the sale of the Mijas development. You have done nothing for those EUR 50 million to be returned.
That is because the parties accountable are members of the executive board. You do not do what you should be doing. You do not defend the rights of shareholders. You defend your rights and those of your men at arms. It is up to you to ensure that you and those persons I have described be removed. That would not be the only reason why I request that you be removed. You are abusive. You want to have as many votes possible in order to ensure that your recommendations are carried out. You have asked the notary to not account for those delegations which are spuriously captured in detriment of those who can do nothing about it. You also make use of delegations or proxies. In the case of conflict of interest, you delegate into a delegation.
I am going to be bringing that case to court as well. Mrs. Botín, unfortunately for shareholders, nobody wants you at the head of the bank. The shareholders, the markets, the Financial Times actually criticize your designation. Proof of the pudding is the price of the share. It has been a tumbling down. Over 40% has been lost. What about Mr. Orcel? The excuses for that non-designation are to be believed by no one. You would not be paid anywhere else in the world, even 1/10 of the 11 million that you collect every year at the Banco Santander, especially when we shareholders have invested over EUR 500 million in order to ensure that the Botín continued to be at the head. Only EUR 300 million have been used for Mr. Corcóstegui and Mr. Amusátegui hand over the reins to your power. Mr. Corcóstegui was 51 at that time.
He received EUR 100 million to pave the way to all of yourselves. We've seen recently something published which we knew of, the acquisition by Santander of political and judicial issues. We have heard about a member of the Socialist Party having addressed the issue of having solved Mr. Botín and Mr. Echenique's problems, the so-called Botín doctrine. They were not jailed because of that tax fraud. Santander for years sold over a number of years, billions to Madoff, although the entity had three reports from employees spelling out that this was a scam, this was a Ponzi scheme. Mrs. Botín and shareholders, please explain to everyone your visits to Mr. Madoff in the Lipstick Building. Why? Your defense of Madoff. You defended him fully aware of the fact that Madoff's products and results were the result of a full-fledged scam.
Mrs. Botín, your life is like an image campaign. It will only serve you to shine in your financial funeral because we do not want to continue to have you in that position. We know what the readings are in the U.S. and in the U.K. We know about the collaboration in tax fraud because of the Cum-Ex dividends in Germany or the Popular case. Mr. Shareholder, your time is up. I am allowing you one more minute. What is the image of the bank? How is the bank perceived when its chair is involved in the HSBC Switzerland? Think about Ray Dalio, who is a multimillionaire, but he believes that he should be paying more taxes.
Mr. Mato, as a member of the board, when he was with the BNP and currently being investigated for possible money laundering in Switzerland of the millions of the Botín family. Mr. Benjumea, who is also Mr. Shareholder, would you please come to the end of your comments? Mr. Echenique of those credit sessions, Mr. Villar Mir, who fortunately has left the board, those Mexican scandals. Mr. Monzón, your friend, who had to leave Indra because of the losses.
Mr. Shareholder, your time is up. Thank you so much.
I request your removal, and I request also that social action of responsibility, the entire board.
Thank you very much, Mr. Shareholder. Your time is up. Thank you. I give the floor to Iker Miranda Serrano.
Hello, good day. As an entrepreneur and as an owner of nine shares, I started working in an industrial company. I started from the bottom as an IT technician, and now I am Chairman. Like many other companies, because of low demand during the crisis, we had to close with 133 employees and five months without getting paid. These are very difficult situations, which made me take the decision to become an entrepreneur myself. With a project and with capital, we looked for financing, we were encountered with a very difficult reality. No institution would finance anything without any personal guarantees. Although that was, of course, something that was very difficult to overcome. We got in touch with the Vitoria Santander branch, and we met its manager, Jasmine. She looked for a solution for us.
The bank would work to look for those guarantees, and that was almost the dream of any entrepreneur, finding a single window to get all your problems solved. She, the branch manager, got in touch with an organization that lent us the collateral that we needed. Thanks to your support, we were able to make our project come true. It was a real solution for us. Obviously, the other three institutions, once we already got that guarantee, also wanted to participate in our project, those banks. The work done by Jasmine, nobody else did for us, no other bank could. In this life, apart from education, as the Chairman said, effort and work, you also need to be luck. Lady Luck has to be with you. Some people have it, others don't.
My parents had no education, they made every single effort they could to make sure I got an education, we were missing luck. With the help of the bank and with the help of Jasmine, the branch manager, I was able to build an innovative and exclusive product in Europe. What I want to say is that this proves that the image conveyed by the bank has very little to do with reality. Apart from salaries and premium and all these other news that we hear about, Santander truly makes an effort to help people and make their projects come true. Apart from the technology, social media, and the use of big data to have repercussion, I'm sure the bank does it and has enough means to do so. It is necessary to reach people and look for solutions, as Jasmine did for us.
All this story is to tell you that I have an idea. Why not have a single shop window for entrepreneurs? You already did it for me. Being an entrepreneur is very difficult. Why not reach agreements with chambers of commerce and other institutions to promote the funds that the bank has for entrepreneurs? Many entrepreneurs, when we have an idea for a project, whether it is voluntarily or forcefully because the companies where we work for have to close, we go to these institutions when we have a project at hand, they give us a dossier like this one, where they explain to us all the subsidies and lines of funding that an entrepreneur has to carry out his project. We must take into account that the digital banks are right around the corner. Santander has something that the others don't have.
You have people who look for solutions. I think it would be very positive to foster the image of a single window, a single stop, single point where people can get help to do their projects. You already do it more or less, and I want to congratulate you. Thank you for the excellent people you employ. To finish, I would like to thank you for allowing me to be here with only nine shares that I own to present this proposal, and please never forget that there's nothing as important as people. Thank you.
Thank you very much. Thank you, Mr. Shareholder. I could not agree with you more. On behalf of the 200,000 employees, all of us in Santander, thank you for your kind words, and I will afterwards react to your proposal. The floor goes to José Ignacio Ubilla Volado.
Good morning. I am José Ignacio Ubilla Volado, I am here today with a very straightforward question. This is something that I think is very important for all of us here. Madam Chair, what does the Banco Santander want to do with the dividend? Thank you for your answer, I truly hope that the bank achieves everything. I hope that everything goes well for the bank and us, the shareholders. Thank you.
Thank you, Mr. Shareholder. Next, I give the floor to Mr. Enrique Sebastián Molina.
Good day, Madam Chair, ladies and gentlemen, members of the board, ladies and gentlemen, shareholders. I am addressing you as member of the Banca Armada Campaign promoted by CETIM, the Center for Peace Studies, the Observatory of Debt. I am speaking on behalf of 24 shareholders that for the 10th year in a row have been delegated with many shares to come once again to this meeting to complain about the investments in arms that the bank is doing. We have the Center for Peace Studies, and we have identified 18 companies that build weapons that have been financed by Banco Santander for a total amount of more than EUR 2.4 million. All of these are companies that, based on their commercial interests, overlook the terrible consequences produced by their product. They are exporting weapons to the north of Africa and Far East.
They contribute to the escalation of conflict in these areas and put at risk the lives of people who live there. Many people have to flee their countries. In the last few years, forceful migration, it has risen considerably. This is a drama that nobody can turn its back on. We want to dedicate this intervention to two specific examples which show the complexity of that Banco Santander has to do with all these terrible happenings in the world. In 2018, Banco Santander financed with more than EUR 54 million Indra. 20% of its production is military, and it controls 80% of the Spanish missiles. It is one of the main companies responsible for building the wall between Spain and Melilla and Morocco, and Ceuta and Morocco.
With the second example is a company, Maxam, from 2013-2018, has received from Banco Santander more than EUR 165 million in credit. Maxam is one of the military explosive companies, one of the largest in the world. In the past, it was responsible for cluster bombs. It had to stop production when their production was forbidden. Maxam also sells explosives to Saudi Arabia. I think it is obvious for anyone in this room that the Saudi regime does not comply with the treaties on human rights that Banco Santander say they follow. It is no secret either that Saudi Arabia has been involved for many years in the war in Yemen, with thousands of deaths ever since Saudi bombing started. These are just a few examples.
Sadly, we can continue to analyze the other arm, weapons, or arms companies that are financed by Banco Santander and that infringe human rights. Chairwoman, shareholders, please face up to this reality that we have been talking about here for more than 10 years. It is not only growing and making money. We have to see at the cost of what we are growing and making money. Be no longer part of the problem, and become part of the solution. Thank you.
Thank you, sir. The floor goes to Nuria García Castellón.
Good morning, Madam Chair, members of the board, ladies and gentlemen shareholders. I speak as a member of the campaign, Banca Armada. A number of different NGOs are involved. A number of acronyms have just been read out. I speak on behalf of 24 shareholders who have delegated a total of 75,173 shares. We want to be heard today. We want to denounce investments in nuclear weapons, which the bank continues to carry out. You said last year, ma'am, that the team of Banco Santander takes into account social and environmental aspects whenever investments are to be made. This is the 10th year running that we speak out. This bank continues to be one of the leading institutions to invest in nuclear weapons manufacturing. The total invested as of 2013 is of EUR 2.4 billion.
This is according to a research center. Banco Santander is the second Spanish bank that most invests in these lethal weapons. Despite your guidelines, where it is established that your banking entity will not have any kind of a commercial relationship with entities that participate in anything related to weapons, we know that you have financed the following organizations. Honeywell International. This is one of the companies that is most involved in nuclear activities. Practically EUR 130 million. Leonardo, for the development of transportation of missiles, EUR 180 million. Boeing, Fluor, Thales, these are some of the companies that manufacture and export nuclear weapons, which have also benefited from loans and credits from Banco Santander. As you can see, Mrs. Botín, we are concerned about the dangerous relationship between your bank and companies that manufacture nuclear weapons.
This is especially worrisome in the current scenario, after the U.S. and Russian governments have announced that they are going to be withdrawing from the Mid-Range nuclear weapons agreement, an agreement which, during the Cold War, was very useful. The consequences in terms of human lives lost. The effect on the world would be tremendous. The effects would be much worse than what we saw in Hiroshima and Nagasaki during the Second World War. Members of the board, ladies and gentlemen, do you not think the time has come to no longer finance these weapons of mass destruction as other banking entities and financial entities have done in Europe?
Ladies and gentlemen, shareholders, if all you want is to grow your dividend, continue to invest in the weapon sector. You must be aware of the fact that this lack of responsibility has all of us, including yourselves, living in a world which is less and less safe. Be aware of the fact that civil society, and especially our campaign, will continue to remind you and the rest of the armed banking sector. Mrs. Botín, we ask you and all of the parties present to leave today and for good behind you the funding of companies that build nuclear weapons. Thank you for your attention, and we really hope not to have to come back next year.
Thank you very much, Mrs. Shareholder. I give the floor to Mr. Manuel Alejandro Villarrubia Cortés.
Good day, everyone. The first thing I wanted to do is make a remark on what the colleague from Ciudad Real said, that he had to sit in the adjacent room and not in the main room. I come from Madrid. I called the line for shareholders the second day that the assembly was convened. I'm sitting at the back too. I think I have half of the shares he has. I'm sitting in the main room, although at the back. Don't worry. It's just a matter of luck, I guess. Next, I'd like to agree with what Mr. Bruce Carnegie-Brown said about not hiring as a CEO Mr. Orcel. Not hiring Mr. Orcel.
I agree with what Mr. Carnegie-Brown said, particularly when he said that the philosophy of the bank is not to spend so much money hiring an employee. I fully agree with that. Regarding my questions, I'm really surprised nobody has asked yet about this. That's Brexit. The U.K. is a very important country, particularly for the bank. It is a country that is in turmoil. We don't know very well what is going to happen. The chairwoman was living there for several years. I'm sure she knows much more about the situation than we do. I'd like to ask her, how do you see Brexit? What do you think is going to happen? Do you think that we're ready for whatever may happen? That's all. Thank you.
Thank you, sir. The floor now goes to Mrs. Natalia Peiró Pérez.
Thank you so much, ladies and gentlemen. I'm Natalia Peiró, Secretary General of Cáritas Española, and I represent the shares that belong to this entity. Thank you to Madam Chair, thank you to the members of the board, for having made it possible that we be here today, the president of Cáritas Española, Manuel Bretón, and myself, and thank you also at this point in time, all of the persons, all of the employees of the Banco Santander, all of the employees of Cáritas, who make it possible for this close working relationship between Banco Santander and Cáritas actually being something of import. Definitely, it is very important for Cáritas. We have alliances with companies and institutions which ensure that our activities make a difference for those who have least.
We also can talk about the causes underlying poverty and exclusion, and we can jointly look for long-lasting solutions, and we can carry out the kind of social and economic actions that truly do generate opportunities for these have-nots. Cáritas is the church, and thus has 6,000 parishes and another 1,000 venues, 70 of which are here in Santander, in Cantabria. We also have a presence, thanks to our international network, in over 160 countries. These doors are opened, but not only to people who want food or clothes or the payment of some bills, but they are there to help persons who have nothing at all, making it possible for them to become members of society. We work with the homeless. We work with people who have no jobs. We work with people who have no homes.
We work with people who are victims of trafficking in persons, in Spain and in other countries, thanks to Cáritas the world over. In a nutshell, as we've said on other occasions, we in Cáritas also work for people and with people. Thanks to our territorial structure, our organization also encourages the establishment of centers where these persons can get together. We work with them in order to share and generate legislative changes of all kinds that will make their lives easier. Cáritas Española relies on 80,000 volunteers, 4,000 employees, and the support of donors and institutions. Institutions such as the Banco Santander, which have allowed us last year to establish 37 companies, among other initiatives. All of us are committed, as well as those 3 million persons who were assisted by us in Spain and abroad last year.
EUR 354 million were invested, the private contribution was of 73%. Finally, now, thank you again for this collaboration. Let me underscore that these are different times. These collaborations have to grow. The commitment that we request of yourselves, of the board, of the chair, is to help us explain that this commitment exists to the partners, donors, workers, customers, collaborators, with each and every one of the companies involved, because we believe that these companies are where persons are who may commit. This is where the engine of change is for a society that needs a change. Thank you all. We can talk about dreams come true, initiatives underway, and lives rebuilt. We count on you, we thank you for your commitment, and appreciate the time you have allowed us. Thank you.
Thank you, Madam Shareholder. I give the floor now to Montserrat Moñanés Cibrián.
Thank you so much. The growth of your business in generating a return for your shareholders is important, but not at any price. I'd like to congratulate you for the new challenges that you've set for yourselves on the midterm. It is an excellent and necessary initiative. It is important that large companies like yours set the example and commit to reduce their impact on the environment. Apart from what you've already said, my questions are as follows: What transactions are you doing today to favor sustainable development? How does that fit with your strategy? Thank you very much. Good day.
Thank you very much. Thank you very much, madam shareholder. Does any other shareholder wish to take the floor? We have come to the end of the one-minute speech time. I remind remote participants that no more contributions are to be accepted. We now are going to watch a video, which we hope is of interest. Thank you. The floor goes to the secretary to report regarding modifications and amendments in the bylaws as agreed. This as of the last meeting.
I inform you that the board met on February 26, 2019, and agreed to a number of modifications, articles 5, 6, 13, 16, 17 and 18, 19, 21, 22, 26, 29, 31, 32, and 33. These amendments are with the aim of modifying some aspects, incorporating best practices, and some changes which result from the modification of Trade Law and Capital Companies Laws of December 18, and the technical guide 1/2019 of the CNMV regarding remunerations committees. Among the modifications include the following: To establish that the Audit Committee is made up exclusively by independents and strengthen its task regarding non-financial activities. Broaden the Nominations Committee, assuming tasks which so far only corresponded to the BRC. Expressly set forth that the lead director will be the director of the Nominations Committee. The remunerations and nominations, including the following entities.
Determine that different personnel will participate in Responsible Banking, Sustainability and Culture, Innovation and Technology, and the collaboration with each one, as well as forecasting presence of any person who is not within the group, but who should be. We believe that this should be made up of independents and presided by a member of the board of that nature. The member will be a member of all of the committees. These were duly introduced into a writ March 19, 2019, and have been included on March 18, 2019. We hereby recommend that page 150 of the individual accounts include sanctions that were imposed during 9/2018.
We have seen sanctions of fines for these non-compliances, Law 2688, regarding the carrying out of forbidden acts with regards roundings, and Article 19(2), which has to do with pre-contractual and settlement in mortgages, which will be published in the Official State Bulletin and by the Bank of Spain with regards legislation in force. As to issuing bonds, other values, including warrants and convertibles into shares which have been conferred as of Article 10A of the Board of March 27, 2015, we hereby report that it was agreed on February 4, 2019 to issue preferential shares, which may be convertible into ordinary shares, new issuance. Said issuance was carried out by means of that. The corresponding information as provided by that.
The exclusion of the rights to preferential subscription and the corresponding report with regards the reasonableness of data included in those reports and the suitability of conversion of those forms in order to prevent a possible dilution of shareholders were incorporated on February 7, 2019 onto the bank's website, and as of then, are available to shareholders at the offices of the bank. They may be visited, and they are available at the notary's desk.
Thank you very much. Next, I'd like to answer the questions from the shareholders. Shareholder Mónica Delgado Fernández, who asked whether we are satisfied about what we've done in the last three years, if we feel comfortable that this performance of the bank will continue. As I said in my speech, we have met all our financial targets that we set for ourselves three years ago. The reason why we think that we will continue to comply with our targets is that because we have achieved these results in a sustainable fashion. We've done so by growing the number of loyal customers. The number of digital customers has doubled to 32 million, and we have achieved well-balanced growth. We've grown our revenue. We've also improved the return, and we have strengthened the capital base of the bank.
Therefore, we are very comfortable and we are very confident that with the great team we have in the bank, we will continue to comply with the plan that we presented a few days ago. The next remarks were from María Teresa Echarri, who asked about the dividend and how important the dividend is for minority shareholders. Believe me, we are aware of this importance. We give dividends top priority. We have increased it by 4.5% in total, and the cash dividend by 9%, if, of course, this AGM approves it. That's EUR 0.23, out of which EUR 0.20 will be paid in cash. That includes the scrip dividend that the shareholders have decided to collect in cash at EUR 32 billion.
We will continue to try, as I said earlier, to increase the dividend in the future. The next remark was from Julián Arana Gandica on Latin America. If we will continue to grow in Latin America, if we're concerned about instability, and also asked about the acquisition of minority stakes in Mexico. All countries have ups and downs, and this is not something that only affects developing markets exclusively. We also see instability in developed markets more and more, particularly on the political side of things. Therefore, that is part of the business, and it is part of our work to anticipate and manage the banks in good and not so good times. I think as proof of what we're able to do, we've had 3 very difficult years in Brazil, and in that period we have multiplied by 2, doubled the profit of the bank there.
It's not always possible to do things that well, but we are ready to face instability. Regarding the acquisition of minority stakes in Mexico, we think it is a very good deal right now. Mexico is a country with huge growth potential, and we're always thinking about the midterm. We're in Mexico to stay, and we think that this is the right time to do this deal. As I explained, it is good for the shareholders of Santander, as well as for the Banco Santander México shareholders. The next remark was from Mr. Manuel Huertas Terán, who asked about the CEO. The Chairman of the Appointments and Remunerations Committee already in his report summarized what the process was like and how decisions were made. It was very difficult decision, but the right one in the opinion of the board for the shareholders.
We had two long meetings, the one in January when we announced our earnings, and then also in London a few days ago in the Investor Day. On those two occasions, we were not asked a single question about this issue, and the investors showed that they continued to trust the managers of the bank.
The following speech was by shareholder Ana Barrero López, who asked about the Banco Santander policy and other issues regarding coal and the environment. We are fully committed, and I have said that this was in fact one of our priorities as a responsible bank. We want to contribute to the orderly transition towards a low carbon economy. Our policy is to back our customers throughout the process, and this is important because we bear in mind the social needs of every country, because not all countries are equal. Not all countries can advance at the same speed. What is very important is, of course, to row in the same direction. We are very careful and every year we study our policies, our energy, and our metal policies, for instance, address the issues of efficiency and emissions that projects must satisfy. The shareholder mentioned, and those are the data.
We request for existing customers that the approved transactions notably improve the environmental impacts. The BankTrack report, which you referred to about banking and climate change, has Santander being the third bank with the least activities that have to do with fossil fuels among the 33 banks analyzed. We are stricter with regards coal-related activities, so we are not going to finance any new project of central plants that run on coal or mines. We are very active in terms of renewables. In 2018, we are the bank that participated in most transactions the world over, project finance for renewables. We have contributed to funding renewable energy projects with a capacity equivalent to 5.7 million homes.
We think that the best way of contributing to this phenomenon, which I agree is an absolute priority for all of us, is by backing innovation and backing our customers as the transition takes place towards a new economy. I said that we have established a new committee, which is going to deal with this specific issue. As of 2001, we've asked about the environmental footprint. Yes, we do measure it as of 2001. As of 2011, the group has a number of different plans for energy efficiency and sustainability. As of 2021, we will be avoiding single-use plastics in every single one of our buildings. We are going to increase the use of renewable energies. In 2025 also, we want to achieve this in as many countries as possible, where we can guarantee the origin of the energy we consume.
We will continue to set increasingly ambitious objectives in line with the demands that society makes us aware of. We have been asked about projects that will be financed. In the case of some clients, for reasons of confidentiality, we cannot talk about specific customers, of course. That's privacy legislation. I think that I have answered all of those questions. Kuka Gogolewski, I believe that I have just responded to all of the questions and comments which were made. I have grouped them together. There was Clara Pardo's contribution from Manos Unidas. First and foremost, thank you for your kind words. Let us assure you that we know that by working with organizations as your own is one of the best ways possible of contributing to society and to the communities where we have a presence. There are different criteria.
Things are not the same everywhere. In Spain and in the U.K., for instance, our criteria is that of branch managers, regional managers, who recommend specific projects in which to participate. We also have a program, which is very popular, which is called Euros from Your Payroll. We employees contribute to projects which are voted, and the more popular ones among employees, well, that's where we contribute. What the employee contributes is matched by the bank, and what we do is ensure that projects that we have participation in be managed efficiently and rigorously. In 2018, apart from the bank's contributions to higher education, EUR 179 million, we contributed EUR 58 million group-wide to projects of this nature, and that the world over. Mr. Calzado, I answered. Mr. Martín had a number of questions.
Firstly, as to the CoCos, when we issued the CoCos, we explained clearly to the market that in time, when the time came to amortize or not, we would abide by economic criteria, which is what we did. As to responsible banking, I agree with you completely. This is something we need to talk about more and better. Again, we have a board committee, which is going to help us to further delve into the issue. What do we mean when we say responsible banking? Every one of the 200,000 employees of the group, every single day, do things right. We're measuring this. We're going to continue to measure it. We will be increasingly demanding and doing things the way we should. Simple, personal, and fair for our customers. That's our objective. As to Mr. Orcel, there is going to be no change in the bank strategy.
We said that before. We repeat it now. The CEO is going to be in that position indefinitely. As to your question about German banks, we are not interested. I think that was the question that was asked. The next shareholder was Álvaro Vicinay Múgica, who asked about taxes. Taxes are very important. Again, being responsible means that you contribute wherever profits are generated and in accordance with legislation in place. I would just say that in 2018, we paid EUR 7.5 billion in taxes, of which EUR 3.4 billion correspond to corporate tax and the difference, nearly EUR 3.6 billion. That is contributions into the Social Security system. Spain represents 18% of group profits, and in Spain, it was EUR 1.7 billion, of which EUR 474 million were corporate tax. Another question was posed about the integration of Popular, the question was also posed about the art collection.
Is the art collection going to come to Pereda? Yes, it is. We want the bank's collection to live here. About the integration of Popular, it was very important to address the concerns of the millions of customers. There was an ongoing conversation. They now can access ATMs, a much larger network than before, and products and services are available to them, which before they had no access to. Mr. Manuel Argente, who had a number of questions. The first, if everyone is a shareholder here. In the hall, there is a majority of shareholders, but there are also some guests. There are executives, there are employees. As to the integration of the Popular, 100%, I've just responded. I would add that it will be completely integrated, all branches, by July 19.
Far to date, we have integrated central services, the branch network, Cantabria, Asturias, Galicia, and the Basque Country. As to the organizational structure of the bank and what it actually represents for private parties in Spain. This is actually important for all shareholders, Spanish or not, for all customers. What we want to do is execute as quickly as possible, be more profitable, provide better services, do something which we are already doing, which is collaborate among the different units. We have best practices everywhere. We are working along these lines. What it means to be a part of the group in terms of savings for 2018. We want to do more, not only share, we want to do things together in operational terms. We want to build the business. We're looking to the future.
We believe that this will be good at the end of the day, not only for shareholders, but also for customers. That is why we work. That is our objective. The question about buyouts and rules in place, this is very important if we want to attract talent. Giving shares to offset the losses in remunerations in previously held positions. As to the plan that you saw in the report for employees, that special U.K. employees plan, yes, you're right, but we have incentives in Spain different from those in the U.K. In the U.K., it's included in the report because it has to do with share acquisition. As to agreements reached at this venue, are there changes? Are there adaptations? No, but technical adaptations need to be implemented so that they can be included in the official documents. The next shareholder is Francisco Javier Martín Sánchez.
Again, asked about the bank's strategy and the market in Europe and in Spain, and about the evolution in the share price. About the shares, I would say firstly, we understand clearly as board members, as shareholders, that at the end of the day, the market prepares a report card. There are three thoughts to bear in mind. We live in a market economy. What you want is to be number one, but we have to play the game wherever the game is called. We are back number one in the Eurozone in terms of market value. When we began this plan, this three-year plan, the new plan, the difference vis-à-vis the second was tiny. Now the distance is 30% in terms of value.
Secondly, far to date, profitability is close to 15% if you compare with 12 for European banks and total returns, because at the end of the day, this is very important also. We have guaranteed 13%, which is much more than the European Bank Index. Then another thing that we can control is what we do. Results, as I said, we made good on all of the promised results included in the three-year plan. To summarize what the bank has done over the past three years, and shares do not reflect it, share price does not reflect it, is we've grown our net profits by 30% as of 2015. We have strengthened capital by EUR 18 billion, apart from other instruments, subordinate instruments, and we have improved profitability from 10% to 11.7% last year.
As I said before, we do things the right way. We guarantee that these are sustainable results. If we look to the future, we are confident that we will continue to achieve these good results, good results for everyone involved. Another point which is important is that the market, the stock market, is complicated, especially for European banks, for Europe. That's why I talked about Spain and Europe, because this affects all of us as shareholders of the bank, and it affects the bank. Because at the end of the day, what analysts do is they put it into the European bank's drawer. This is important. Europe, as I said, there are political uncertainties, not only in the U.K. We have negative interest rates.
There's a series of facts which explain that European banking at this point in time is not well assessed. This is something that does not depend on us. We are one of the European banks that has a recommended buy at this point in time. We hope to be further differentiated into the future.
Following question was from María del Carmen Gracia, who asked whether the return of the bank is enough for the shares to continue to improve. She was also interested on this point. The return, as I just mentioned, of the bank has improved a great deal in the past few years and has improved with much more capital. Obviously, that is even more difficult from 10% to 11.7%. We've also improved the dividend significantly. As I just said, this year, the cash dividend will go up 9% per share. The next remarks were from Mr. Javier Valero Quirós, who asked about the dividend too. The dividend, ever since the capital increases that we've done in the past few years, those who bought shares in the capital increase of January 2015 have received until now EUR 1.15 per share.
That is the equivalent to 18.8%, which is not bad at all, of their investment in the last four years. Those who bought, I also bought, in the June 2017 capital increase, when we acquired Popular, have received a total of EUR 0.45 per share. That is the equivalent of 9.3% of their investment. That's in less than two years. Return on the subscription price was EUR 4.85, I remind you. The next shareholder, Mr. Javier Lante Serrano, who asked a set of questions. In terms of the share price, I already answered that, but he more specifically said against the tangible book value. Today, it's one time. Many of the European banks are 0.6, 0.5. This is what the market is valuing Spanish European banks at today. I remind you that shares go up and down.
It was seven a few years ago in 2014. Then it reached almost seven in April 2015. Today, as I explained, we're making more money. We have more capital. We have improved our profitability. We have more sustainable earnings, and the market gives us a four in share price. That reflects the perception of the market of European banks. It is important that we are aware that banks are important. That's why I said it in my speech, that everyone should appreciate the role and mission that banks play in Europe. Now, I'm going to refer to your questions on the Popular bank and the intervention. In terms of the resolution process, it was the Single Resolution Board that agreed to resolve Santander. Sorry, Popular. Santander followed the process of the authorities.
It was the Banco Popular board that decided that the bank was not viable, that we ourselves were able to verify the situation of Banco Popular. We had to inject EUR 30 billion in liquidity, and that is part of the euros of the capital increase. These decisions of resolving Banco Popular were measures adopted by the European competent body, the Single Resolution Board. Now, the Banco Popular customers, we are making sure, receive the best service. In terms of the loyalty bond, that we launched a few months after, that was done for only commercial purposes. It was not a measure to avoid lawsuits. These bonds were offered only, as you know, to shareholders and holders of subordinate shares of Banco Popular who were also customers of the Santander Group in Spain, and they had to fulfill certain requirements because we were looking to lock them in to make them loyal customers.
The criteria to benefit from the bonds were very clear and transparent, and I am aware that every case was studied individually to make sure that all the customers received a fair treatment. A customer of the group that had invested less than EUR 100,000 in the group shares has already recovered 80% of their investment if we compare their investment to the current value of the bond. And the acceptance was 78%, or the take-up, 78%. In terms of the question about the auditor. The auditor of Banco Santander appointed before the acquisition of Banco Popular had a contract until 2018, and he followed the applicable regulation, and his work is not affected by the work carried out in Banco Popular by other teams from the same firm. In terms of the litigation provisions, they are in note 25 of the annual report.
In the opinion of the board, the provisions for litigations are enough, are sufficient. Also, they asked about the arrangement fees. In terms of the expenses on mortgages, I remind you that we have a mortgage that is one of the best functioning in Europe. It's been very important to the success of the Spanish economy. In the last 10 years, the average interest on mortgages in Spain was 2.23%, which is almost half of the EU average, which is 3.22%. This is data from the Bank of Spain and the European Central Bank, 78% of households own their own home, and that was the starting point for many small businesses in Spain. In terms of the question, well, the bank considers that the arrangement fees that we have charged have always been legal, in line with the guidelines of the Bank of Spain.
The Supreme Court of Spain has ruled against having to pay all the expenses, but that does not mean that the bank has to take on all these expenses. This stamp duty is paid by the customer following the doctrine of the Supreme Court of Spain on November of last year that the stamp duty has to be paid by the customer and not the bank. In 2018, it is established that for future operations, the tax has to be paid by the bank, and that is how we have been doing. We are dealing with claims according to the criteria set by the courts and each case's circumstances. In terms of rulings in favor and against, the shareholder mentioned a ruling against, while there have been rulings in favor, others against, of course. I think with that, I answer all the questions on that point.
In terms of the floor clauses, they only affect the Santander since the acquisition of the Popular. We have already established the required mechanism to provide a response to this situation. Popular eliminated floor clauses from their mortgages in January 2016, although from 2013, it did not have any clauses in the new mortgages. These we think were legal because they were solved with transparency. The decisions of the courts are not being contrary, generally speaking. They are taking into account the specific circumstances in each case. As to appeals, I think I have answered all of Javier Blancas Cerón's questions, but Mrs. Ana Cebreros also talked about accounts. Reliable accounts? Of course, our accounts are reliable, yes. As to appeals, well, we take whatever decisions are appropriate on a case-by-case basis. I think that I have answered the questions posed by Ana Cebreros.
The next shareholder was Mr. Julián García-Caballo. He asked about talent and diversity. We are 200,000 employees, as you rightly pointed out, sir. What we are doing to recruit the best possible talent, which is key to our success. Well, first, we work hard with regards culture. We want to have the kind of a culture where people want to work. We want to be one of the best places to work in those countries where we have a presence, and we are successful in seven of the 10 countries where we have a presence. We are currently looking not only at achieving financial objectives, so it is not only about the numbers. Of course, numbers are very important. With regards incentives for the team in general, how to achieve those objectives.
Again, this is something that allows us to attract the kind of people we seek to attract. Yes, diversity, not only gender, but all kinds of diversity are very important for the board and for management in general. We are doing our utmost to speed up this change to be a more diverse team. As to the presence of women, we have mentoring programs in place. In a number of countries, we actually have a specific requisite that wherever there is going to be promotion, we need to have gender diversity, even if this has us recruiting from outside of the bank. We have set forth, as I said, we have set forth that on the board, we want to have between 40%-60% diversity. This by 2021. Then Carolina Rueda from the Brown Bear Foundation. Unfortunately, our friend has gone who loves bears.
We are going to continue. As I say, it is our teams who have the last say, so it is wonderful that we are close by. We want to be there. In our branches, we continue to back up. I remind you that we had only 80 bears. Now we have 340 bears. The president of this region of Cantabria is passionate about bears, so it is a shame that he left. We are delighted to contribute to your project, ma'am. Now, Miguel Ángel Vásquez, who asked a number of questions. Well, I think that we have dealt sufficiently with share-related issues. We do not control the markets. The markets have their own life. The problem now is that Europe is not fashionable.
European banks are not growing. We are a European bank, but we have a presence in the Americas, and this is exactly what allows us to continue to generate results throughout the cycle. We are going to continue to invest, as we said. We're going to be buying back in Mexico. As to our members of the board, remuneration issues, the board and the remunerations committee tracks this very closely. The sum total in the short term has grown by 6%, whereas group profits have increased by 7%. I would add that total remuneration represents 0.20 of profits, whereas in 2015, it was 0.28. I would add that we do track this very closely because you want to ensure that compensations and remunerations are aligned with the market. We have introduced major changes. A goodly portion is now deferred and is subject to midterm plans.
If the plans are not successful, these numbers will be reduced. A goodly portion actually now is in bank shares. We are perfectly aligned. This is not only for executives, this is not only for directors, this is for all of top management. As I say, we are tracking the bank and the bank's performance very closely. As to the scrip and minorities, I think he said that he liked scrip and asked about that. What we've just announced a couple of days ago in January, when we talked about results, we said that we want to continue to use the scrip, we also are