Banco de Sabadell (SAB) Q3 2025 earnings summary

Executive summary

• Net profit reached €1.39 billion for the first nine months of 2025, up 7.3% year-over-year, driven by higher loan volumes, customer funds, and reduced provisions, with ROTE rising to 15.0% (14.1% recurring).

• Strategic transformation since 2021, including the sale of TSB to Santander at attractive multiples, has driven a turnaround and supports a cumulative €6.45 billion shareholder distribution planned for 2025–2027.

• Shareholder remuneration guidance and strategic plan targets reaffirmed following the conclusion of a takeover bid.

Financial highlights

• Net interest income for 9M25 was €2.7 billion ex-TSB, on track for €3.6 billion full-year guidance; group net profit for 9M25 was €1,390 million, up 7.3% YoY.

• Net fees and commissions grew 3.7% YoY ex-TSB; cost of risk ex-TSB at 37 bps, improved by 18 bps YoY.

• Total costs decreased by 1.1% YoY to €2,282 million; cost-to-income ratio improved to 48.1%.

• CET1 ratio at 13.74%, up 18 bps in the quarter; phase-in Total Capital ratio at 19.51%.

• Second interim cash dividend of €7 per share payable December 29; total 2025 shareholder distribution €1.45 billion.

Outlook and guidance

• 2025 guidance reaffirmed: NII of €3.6 billion, mid-single-digit fee growth, low single-digit cost growth, cost of risk near 40 bps.

• ROTE target of 16% by 2027; cumulative shareholder remuneration for 2025–2027 raised to €6.45 billion.

• Yearly cash dividends per share in 2025–2027 to exceed 2024’s €0.2044.

• NII expected to start growing in 2026, reaching €3.9 billion in 2027.