Banco de Sabadell, S.A. Earnings Recaps
Q2 2026
Jul 28, 2026
The stock rose 4.8% following Sabadell’s Q2 report, driven by better-than-expected commercial momentum and growth in core revenues, supporting confidence in achieving 2026 targets.
Key takeaways
- Performing loans increased 3% quarter-on-quarter and 5.5% year-on-year, showing accelerating growth especially in Spain and international markets like Miami.
- Net interest income grew 3.4% quarter-on-quarter; fees increased 4%, underpinning expanding core revenues.
- The bank fully executed a EUR 37 million one-off early retirement charge in Q2, totaling EUR 92 million in H1, with anticipated cost savings of EUR 20 million in H2 and EUR 40 million recurring from 2027.
- Total provisions were EUR 152 million, rising from a low base in Q1 but in line with expectations.
- Sabadell generated over 400 basis points of capital from the TSB sale, completed a EUR 800 million buyback and announced a new EUR 331 million buyback, reflecting a commitment to shareholder returns.
Q1 2026
May 6, 2026
Sabadell’s Q1 earnings were met with a modest 2.5% stock gain as core revenues hit their anticipated low point and management reaffirmed full-year guidance, though growth remains cautious and early retirement costs weighed on near-term profitability.
Key takeaways
- Core revenues reached their trough for the year, with expectations for gradual improvement as NII repricing pressures ease and fee income normalizes.
- Performing loans grew 1.6% sequentially and 5.6% year-over-year, supported by mid-single-digit growth in loans and customer funds excluding TSB.
- One-off charges of EUR 70 million (pre-tax), including EUR 55 million tied to an early retirement plan, impacted the quarter’s profitability.
- Recurring return on tangible equity remained solid at 14.1%, tracking toward full-year guidance of 14.5%.
- The completed sale of TSB generated significant capital, prompting a EUR 0.50 per share extraordinary dividend and ongoing share buybacks.
Q3 2025
Nov 14, 2025
Sabadell reported solid third-quarter results, achieving a recurrent return on tangible equity of 14.1% while maintaining strong growth in performing loans and customer funds, positioning the bank well to meet its 2025 financial targets.
Key takeaways
- Return on tangible equity rose to 14.1%, with a target of 16% by 2027, reaffirming the bank's strong profitability trajectory.
- Customer funds grew by 7.8% year-on-year, driven primarily by off-balance sheet products, indicating robust commercial activity.
- Confirmation of a second interim cash dividend of EUR 0.07 per share, part of a total EUR 1.45 billion distribution for 2025.
- Core revenues are on track with net interest income expected to meet the EUR 3.6 billion target for 2025.
- Asset quality improved, with total cost of risk down to 37 basis points, showcasing strong credit management practices.