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Sabadell Profit Rises, NII Outlook Trimmed
30 Oct
Summary
- Q3 profit rose 13% to EUR 405 million, on track for 14.5% RoTE target.
- Full-year net interest income growth revised to 1%, slightly lower than expected.
- New interim dividend of EUR 0.07 per share announced, payable by year-end.
Banco Sabadell's third-quarter recurrent net profit reached EUR 405 million, a 13% increase from the previous quarter, and the bank remains on track for its 14.5% full-year return on tangible equity target. The bank's performance was bolstered by a 2% rise in net interest income and a 3.7% increase in fees.
However, the lender marginally revised its full-year net interest income growth guidance to approximately 1% year-on-year. This adjustment stems from higher deposit costs, which rose faster than anticipated due to rising interest rates. Despite this, asset quality remained stable, with the non-performing loan ratio improving to 2.4%.
Banco Sabadell also announced a new interim cash dividend of EUR 0.07 per share, scheduled for payment by year-end. This reflects the bank's solid capital generation and commitment to shareholder returns. The bank reaffirmed its 2027 profitability target of 16% RoTE and its EUR 3.9 billion net interest income target for the same year.
