Banco de Sabadell, S.A. Q3 2025 Earnings Recap

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.