Banco Sabadell celebrated its victory in the failed hostile takeover bid launched by BBVA with record profits between January and September. According to the results published this Thursday, the company achieved a net profit of 1,390 million euros, 7.3% more than in the same period of 2024, which was already a record in itself, at that time in a favorable context for the banking sector due to the high rates of the European Central Bank (ECB).
The Valles entity explained that this result was possible thanks to the growth in credit volume, 8.1% more than the previous year, excluding from the calculation TSB, the British branch that Sabadell sold to Banco Santander mid-year, and the reduction in provisions, by 29.3%, “due to the entity’s better credit profile”. Therefore, the company’s ROTE profitability (Profitability Ratio on Tangible Assets) grew to 15% (14.1% on a recurring basis. The goal is to reach 14.5% at the end of the year), compared to 13.2% twelve months ago. Furthermore, the CET1 capital ratio (a parameter used to measure the financial strength of a bank) increased by 72 basis points in the first nine months of the year, up to 13.74%. Excluding TSB, total customer assets rose to 179,330 million at the end of September, 7.8% more than in the same month in 2024.
“Once the tender offer is concluded, the solid third quarter results reaffirm the entity in the year-end objectives established in the 2025-2027 Strategic Plan and confirm our shareholder remuneration forecasts of 6,450 million euros over the three-year period,” the company’s general director, César González-Bueno, said in a statement. Based on the year’s results, the company will still have to pay the second gross dividend of seven cents per share, which has already been approved and will be paid on December 29.
“The dividend per share will be higher over the next three years compared to the 20.44 cents paid in 2024, and profitability will be 16% at the end of the plan, which focuses on improving revenues, cost management and execution, with Spain as the central market of action,” the manager added.
For its part, Sabadell’s revenues decreased by 2%, adding interest margin and net commissions, to 4,659 million. Of this sum, the interest margin decreased, which is logical if one observes the ECB’s policy of lowering interest rates, which stood at 3,628 million, 3.2% less. Net commissions, for their part, grew by 3.7% excluding TSB, to 1,032 million.
As for the bank’s mortgage production, the company indicated that it increased by 26%, to 5,062 million, with an increase in outstanding credit (the amount of principal awaiting payment to the bank) of 5.6%. Likewise, consumer credit grew by 19% year-on-year to 2,216 million, as indicated by the bank. Overall, Sabadell’s bad debt rate fell to 2.45% from 3.14% in the third quarter of the previous year.
