Banco de Sabadell (SAB) Q4 2025 (Media) earnings summary

Executive summary

• Group net profit reached €1.78bn for 2025, with ROTE at 14.3% and CET1 FL at 13.1%.

• Achieved mid-single digit growth in performing loans (+5.4% YoY) and customer funds (+6.4% YoY), with strong asset quality improvements.

• €1.5bn total shareholder remuneration, including €700M cash dividend and €800M share buyback, with ECB approval.

• Sale of TSB to Banco Santander approved, with closing expected in Q2 2026, impacting segment reporting and financials.

• Efficiency ratio at 49.3%.

Financial highlights

• Net interest income (NII) ex-TSB at €3.6bn, down 6.6% YoY; group NII at €4.84bn, down 3.7% YoY.

• Fees grew 3.6% YoY, with asset management and insurance fees up 15% YoY.

• Total costs ex-TSB up 2.5% YoY, with group total costs at €3,100 million (+0.5%).

• Net profit ex-TSB at €1.46bn (-7.4% YoY); group net profit at €1.78bn (-2.8% YoY).

• Credit cost of risk improved to 21bps, total cost of risk at 31bps.

Outlook and guidance

• 2026 guidance: NII ex-TSB to grow >1%, fees to grow mid-single digit, costs to rise ~3%, CoR to remain ~40bps, ROTE target 14.5%.

• 2027 targets confirmed: NII ~€3.9bn, ROTE 16%, total shareholder remuneration €2.5bn (2026-27e).

• Management expects continued resilience in core markets, with focus on asset quality and capital strength.

• NII expected to accelerate from 2H26, with loan volumes and customer funds continuing to grow.

• Macroeconomic forecasts indicate moderate growth in Spain and the US, with inflation stabilizing.