Banco de Sabadell (SAB) Q2 2026 (Media) earnings summary

Executive summary

• Completed sale of TSB Banking Group to Santander UK for £2,863 million, generating a €322 million net capital gain and over 400 bps CET1 capital generation.

• Distributed an extraordinary cash dividend of €0.50 per share following the TSB sale, impacting CET1 by 378 bps.

• Net profit for H1 2026 reached €892 million, up 10.9% year-over-year; including TSB, net profit was €971 million.

• ROTE climbed to 14.9%, with recurrent ROTE at 13.6% (proforma, excluding TSB and one-offs).

Financial highlights

• Net interest income was €1,774 million, down 2.0% year-over-year due to lower rates, but up 3.4% sequentially.

• Net fees and commissions totaled €643 million, down 0.9% year-over-year, but up 4.0% quarter-on-quarter.

• Total costs reached €1,227 million, including €88 million in non-recurrent costs from efficiency initiatives.

• Excluding non-recurrent items, recurrent costs rose 4.9% year-over-year.

• Net profit included €201 million net of non-recurring impacts (TSB sale, efficiency initiatives, legacy equity sale, FX hedge).

Outlook and guidance

• Management expects stable profitability and further improvement in asset quality, supported by robust capital and liquidity positions.

• Credit rating agencies upgraded outlooks, citing sustainable business growth, improved asset quality, and strong capitalisation.