Spain · Delayed Price · Currency is EUR Banco de Sabadell Earnings Call Transcripts
Fiscal Year 2026
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Employee pride and brand strength increased after the takeover bid, while TSB's sale and capital efficiency measures support strong distributions and growth. AI is expected to drive long-term transformation, with SME banking seen as resilient. Leadership transition is underway, with a focus on collaborative decision-making.
Fiscal Year 2025
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Announced CEO transition and reaffirmed strategic targets for 2026–2027. Net profit reached EUR 1.8 billion in 2025, with strong asset quality and capital generation. Shareholder remuneration remains robust, supported by a new buyback program and continued profitable growth.
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ROTE reached 14.1% in Q3 2025, with net profit near €1.4 billion and strong capital generation. Guidance for 2025 and 2027 is reaffirmed, including a 16% ROTE target and €6.45 billion in shareholder remuneration. TSB sale and robust asset quality underpin positive outlook.
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Management rejected the BBVA offer, citing undervaluation, risk, and better standalone prospects. Financial guidance targets 16% return on tangible equity by 2027, with strong capital distribution and disciplined loan growth. No further M&A is planned, and digitalization is being achieved efficiently.
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The board unanimously rejected the BBVA hostile tender offer, citing fundamental undervaluation, significant execution risks, and negative impacts on shareholder value. Sabadell projects strong standalone growth and remuneration, while the offer lacks a premium and faces broad opposition.
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Management emphasized the standalone growth strategy, highlighting strong organic growth, digital transformation, and robust capital returns. The BBVA offer was critiqued for aggressive assumptions and undervaluing the business. Investors see M&A resolution as a key catalyst.
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Focused on Spain, the plan targets 16% ROTE and €1.6B+ net profit by 2027, with mid-single-digit growth in loans, fees, and costs, and a 40bp cost of risk. €6.3B will be distributed to shareholders, over 40% of market cap, fully supported by organic growth.
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Solid Q2 results with record H1 net profit ex TSB, strong loan growth, improved asset quality, and upgraded 2025 ROTE guidance to 14.5%. Extraordinary dividend to follow TSB sale, with robust capital and liquidity metrics maintained.
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Announced sale of TSB to Santander for GBP 2.9 billion will unlock significant value, enabling an extraordinary EUR 2.5 billion dividend and raising capital ratios. The deal simplifies the business, maintains strong capital generation, and supports future shareholder distributions.
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Q1 saw strong loan and fund growth, improved asset quality, and a 58% rise in net profit. CET1 ratio increased to 13.3%, and shareholder remuneration for 2025 was raised to EUR 1.3 billion. Guidance for RoTE and cost of risk remains unchanged.
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Record profits, strong share performance, and robust capital position were highlighted. Shareholders approved all motions, including dividends and buybacks, while the board and many stakeholders opposed the BBVA takeover bid, citing undervaluation and risks.
Fiscal Year 2024
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Record net profit of EUR 1.8 billion and RoTE of 14.9% were achieved, with strong loan and fund growth, improved asset quality, and a CET1 ratio of 13%. Guidance for 2025 targets resilient NII, low cost growth, and continued high shareholder remuneration.
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Record net profit and strong asset quality marked Q3 2024, with NII up 6.7% year-on-year and CET1 at 13.8%. Guidance for mid-single-digit NII growth and above 13% return on tangible equity in 2025 is reaffirmed, while shareholder remuneration is set at a minimum of EUR 2.9 billion.
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Net profit rose 40% year-over-year to EUR 791 million in H1 2024, with RoTE at 13.1% and upgraded guidance for both 2024 and 2025. Asset quality and capital ratios improved, while the payout ratio was raised to 60% and shareholder remuneration updated to EUR 2.9 billion.
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Management reaffirmed a €2.4 billion capital distribution for 2024–2025, supported by strong Q1 results and robust asset quality. Profitability is set to improve, driven by NII growth, cost control, and strategic focus on SMEs, mortgages, and digitalization.