Banque Sabadell celebrated the autumn victory of the hostile operation launched by BBVA, recording profits for several years until September. According to results published in July, the company earned a net profit of 1.39 billion euros, an increase of 7.3% compared to the same period in 2024, a favorable situation for the European Central Bank’s (ECB) top-tier banking business, which was already a record.
The Varesan entity explains that this result was made possible thanks to an increase in credit volumes (up 8.1% compared to the year), which excludes from the calculation TSB, the UK branch sold by Sabadell to Banco Santander for half a year, and a 29.3% reduction in the allocation to provisions “for the best credit of the entity”. As a result, the company’s ROTE profitability (return on tangible assets) rose from 13.2% last month to 15% (ordinary 14.1%, with a target of 14.5% by the end of the year). Furthermore, the CET1 capital ratio (a measure of a bank’s financial strength) increased by 72 basis points to 13.74% in the first few months of exercise. Excluding TSB, total customer resources increased to 179.33 billion in September, an increase of 7.8% over the same month in 2024.
“Upon completion of the project, the strong performance in the third quarter reaffirms the achievement of the year-end targets set in the 2025-2027 strategic plan and confirms our forecast of shareholder returns of €6.45 billion over three years,” the delegated trustees assured. Cesar González Bueno, CEO of the company, said in a statement: The company, which is responsible for this year’s results, has not yet paid a second dividend totaling 7 cents per title, which has been approved and is scheduled to be paid on December 29th.
He added: “Dividends per share over the next three years will be higher than the 20.44 cents paid in 2024, and profitability will be 16% at the end of the plan, with Spain as the core operating market and a focus on improving revenue, cost control and execution.” Directive.
Meanwhile, income from Sabadell decreased by 2%, with interest and net fees increasing, up to 4.659 billion. In this summary, we will explain what caused the interest margin to fall, which is not surprising if we look at the ECB’s policy of reducing the interest rate type by 3.2% to 3.628 billion. Net fees increased by 3.7% to 1.032 billion excluding TSB.
Regarding the bank’s mortgage production, the company reported that live credit (the amount of capital due to be paid to banks) increased by 5.6%, increasing by 26% to reach 5.062 billion. Similarly, the bank indicated that consumer credit increased by 19% year-on-year, reaching up to 2.216 billion. However, Sabadell’s deceleration rate decreased to 2.45% from 3.14% in the same period last year.
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