Banco de Sabadell, S.A. Q2 2026 Earnings Recap

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.