After completing a very long failed hostile takeover of BBVA; Sabadell Bank showed its strength on its own, achieving a record performance of €1.39 billion in the first nine months of 2025. … Compared to the same period last year, it increased by 7.3%. The company highlights that this increase is “a result of strong commercial momentum with an increase in credit volumes (8.1% year-on-year for exTSB) and customer funds (up 15.4% off-balance sheet and 5% on-balance sheet for exTSB), as well as a reduction in provision provisions due to improved corporate credit conditions (-29.3% for exTSB).”
A British subsidiary, TSB was sold to Banco Santander this summer during a takeover bid for more than $3 billion, with most of the proceeds to be used to pay a macro dividend of 2.5 billion yen to shareholders. The Catalan entity is still reporting its actions in the region, as the operation is expected to be implemented in the first quarter of 2026, after Santander receives all regulatory approvals. TSB therefore reported a net profit of £198 million by the end of the third quarter. This represents an increase of 43.9% year-on-year due to the positive effects of cost management and interest rate hedging. The contribution to Group profit was 242 million euros, which allowed the company’s historic performance to continue increasing.
Indeed, dividends were one of the major assets that Sabadell played during its takeover bid to fend off BBVA. Now that the attempted attack has failed, the bank is reaffirming its dividend distribution guidelines. “The Company continues to generate high levels of capital organically, with the outlook to continue to provide attractive compensation to shareholders over the coming years. Our forecasts for the period 2025 to 2027 are as follows: 6.45 billion euroswhich corresponds to nearly 40% of Banco Sabadell’s current market value. “The company maintains its forecast that the cash dividends in 2025, 2026 and 2027 will be higher than the dividend paid in 2024 (20.44 cents per share),” Catalunya Group claims.
Moving into the details of the income statement, the company’s profitability as measured by rote increased to 15% (14.1% recurring) compared to 13.2% a year ago. CET1 solvency ratio It increased by 18 basis points in the quarter and 72 basis points from January to September, and is already at 13.74% excluding dividends.
Cesar González-Bueno, CEO of Banco Sabadell, asserted: “If the takeover bid is successful, the strong results in the third quarter will reaffirm the year-end targets set in our strategic plan for 2025-2027 and support our forecast for shareholder remuneration of €6.45 billion over three years.” Finance Director Sergio Palavecino highlighted “the positive contribution to the results of all business units and the favorable evolution of the quality of the balance sheet, including a new decline in the non-performing loan ratio and a better-than-expected improvement in the total cost of risk.”
In terms of operations, from January to September 2025, Sabadell generated revenue from its banking business (interest margin and net fees) of 4.659 billion euros, down 2% year-on-year, while gross profit remained at 4.74 billion euros, up 0.3% year-on-year.
This move is due to the impact of interest rate cuts in Europe being reflected in interest margins. he profit margin Net fees were 3,628 million euros, down 3.2% year-on-year and 0.5% quarterly. Meanwhile, net fees increased to €1,032 million at the end of September 2025, an increase of 2.1% year-on-year across the group, due to asset management and higher premium rates.
Total costs for the first nine months of this year amounted to 2,282 million euros, corresponding to a year-on-year decrease of 1.1%. The group efficiency rate in September was 48.1%.
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