Bank Sabadell between January and September it gained 25.9% more than during the same period of the previous year, thus reaching a single digit profit record of 1.295 million euros and practically equaling in nine months the profit for the entire year 2023, as highlighted in the press release sent today to CNMV. It thus resists the public purchase offer that BBVA will launch in the coming months.
Sabadell specifies that this advantage is based on the good behavior of the interest marginin the increase in volumes, investment in businesses, SMEs and individuals, as well as the positive development in asset quality, which has led to a reduction in provisions and an improvement in the total cost of risk.
Concretely, the interest margin, which amounted to 3,746 million euros after growth of 6.7% over one year, mainly driven by a higher yield on bonds credit and an increase in portfolio income fixed income; at the same time as the commissions Net profit stood at 1,010 million euros, down 3.6% year-on-year, but “remaining within the expected range”.
As a result, revenues from banking activity (interest margin plus net commissions) reached 4.756 million euros between January and September 2024, an increase of 4.3% year-on-year.
THE costs the totals amount to 2,307 million euros over the first nine months of the year, representing an increase of 3.4% year-on-year after recording restructuring expenses of BST. Recurring costs, which do not take into account extraordinary items, increased by 2.5% year-on-year.
In this way, the recurring margin (interest margin plus commissions minus recurring costs) increased by 6.1% year-on-year, reaching €2,470 million at the end of September, while the efficiency ratio improved by 2.3 points percentage compared to the same period of the previous year, reaching 48.6. % in the third quarter of 2024.
As for the provisions In total, these decreased by 17.7% over one year, to 561 million euros in September. This decrease is mainly supported by the improvement in the credit risk profile in all segments of the Banco Sabadell Group and by the reduction in provisions made for domain.
The entity thus recorded a further improvement in the cost of credit risk, which already stood at 31 basis points at the end of September, while the group’s total cost of risk stood at 44 basis points at the end of the third trimester.
With this advantage, Sabadell increased its profitabilitymeasured in terms of RoTE, by 296 basis points in annual terms, reaching 13.2% at the end of September. Since the start of the year, Banco Sabadell has improved its RoTE by 174 basis points, having closed 2023 at 11.5%.
At the end of last September, the ratio CET1′at full load’ amounted to 13.8%, which implies an increase of 32 basis points over the quarter and 59 basis points compared to the end of 2023. Sabadell highlights that this ratio already incorporates the payment by 60%. The total capital ratio stands at 18.84% at end-September 2024 and the MDA cushion at 485 basis points.
Credit
Concerning the evolution of the balance sheet, the entity emphasizes that its credit Vivo presented growth of 1.8% year-on-year until September, with a balance of 154,364 million euros, where the increase in credits to businesses, SMEs and individuals fundamentally stands out.
Credit production companies In Spain, that is, medium and long-term financing plus credit lines, amounted to 11,413 million euros between January and September, which represents an increase of 26% compared to the same period of the previous year.
Likewise, the activity mortgage increased by 34% in the first nine months, up to 3,126 million euros, while in the third quarter alone mortgage loans were granted for 1,618 million euros, or 82% of more compared to the same period of the previous year and 8% compared to immediately. previous quarter.
The granting of consumer credit experienced an increase of 17% between January and September compared to the same period of the previous year, having granted 1,856 million euros, while the turnover of cards grew at the rate of 7% over a year, up to 18,470 million euros at the end of September. The volume of transactions carried out with payment terminals increased by 9%, to 44.782 million euros.
On the passive side, the customer resources managed by Banco Sabadell, both on and off balance sheet, increased by 3.4% over one year and, at the end of September, they amounted to 208.249 million euros. On-balance sheet customer funds amounted to 163,468 million euros in September, an increase of 0.9%, while off-balance sheet funds amounted to 44,781 million euros, an increase of 13 .8% over one year.
Lower risk
Likewise, Sabadell emphasizes that its ratio deposit loan (showing the credit/deposit ratio) stood at 95.2% in the third quarter, while the coverage rate of liquidity (LCR) reached 209% at the end of September, with total liquidity of 62,080 million euros.
The balance of problematic assets It was reduced by 775 million euros over the last twelve months, ending in September with a balance of 6.155 million euros, including 5.283 million euros in bad debts and 872 million euros in seized assets. . The report of delinquency It stood at 3.14% in September, below the 3.21% of the previous quarter and against 3.54% in the third quarter of the previous year.
Evolution of the BST
TSB, the UK subsidiary of Sabadell, recorded an individual net profit of £59 million in the third quarter, an increase of 44.7% on the previous quarter, and of £138 million between January and September, which equates to a drop of 9.5%.
Thus, the positive contribution to the profit of the Banco Sabadell Group amounted to 73 million euros in the third quarter, 48.7% more in quarterly rate, and to 168 million euros during the first nine months, 4 .3% more than over the same period. of 2023.
The interest margin decreased by 7% year-on-year, to 730 million pounds (871 million euros), and net commissions decreased by 11.6%, to 70 million pounds (83.5 million euros). ‘euros).
Sabadell highlights that the quarter’s results show “extraordinary elements”, among which are the restructuring costs and the sanction imposed by the FCA for “unfair treatment” of vulnerable clients or at risk of vulnerability, to the investigation of which they have fully collaborated and the necessary emergency measures. were quickly put into practice. The company specifies, however, that these planned one-off items “were offset by insurance recoveries.”
Regarding the commercial activity of TSB, Sabadell highlights that a growth of 24% year-on-year was recorded in the granting of new mortgage loans during the first nine months of the year, which allows the balance of mortgage loans of the balance sheet to close flat (-0.2%) compared to a year previously.
Shareholder remuneration
Concerning shareholder remuneration, it recalls its commitment to deliver certain 2.9 billion euros allocated to the results of 2024 and 2025, which is equivalent to approximately 30% of the value of Sabadell on the stock market. Furthermore, the entity has updated its forecasts for profitabilitywhich plans to remain above 13% in 2024.
On October 1, the entity paid a dividend in cash of 0.08 euros per share (429 million euros), which represents “barely 15%” of the total planned for the period, during which at least 0.45 euros per additional share will be paid.
