Banco de Sabadell, S.A. Q1 2026 Earnings Recap

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.