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Sabadell Posts Record Nine-Month Profit, Reaffirms €6.45 Billion Payout Plan as Shares Fall

Earnings rose despite compressed margins from lower rates.

Overview

  • The bank reported €1.39 billion net profit for January–September, up 7.3% year on year and a record for the period.
  • Net interest income fell 3.2% to €3.63 billion as rates declined, while net fees rose 2.1% to €1.03 billion and total banking income slipped 2% to €4.66 billion.
  • Lending volumes grew 8.1% to about €120.1 billion and the non‑performing loan ratio improved to 2.45%, supported by lower provisioning needs.
  • The sale of TSB to Santander contributed €242 million to reported earnings, with group RoTE at 15% (14.1% recurrent) and the CET1 ratio at 13.74%.
  • Management reaffirmed a €6.45 billion three‑year shareholder return plan, guided for dividends above €0.2044 per share and set a €0.07 interim payment for December 29, as the shares fell more than 4% after the release.