Banco de Sabadell (SAB) Q3 2026 earnings summary

Executive summary

• Q3 core banking revenue rose 2.4% QoQ to €1,260m as NII and fees grew; recurrent costs remained controlled and recurrent net profit reached €405m.

• Recurrent RoTE was 14.2%; FY26 guidance remains 14.5%, rising to 16% in 2027.

• Performing loans grew 4.4% YTD and customer funds 2.6%; NPL ratio was 2.40%.

Financial highlights

• Q3 NII was €920m, up 2.0% QoQ; fees were €340m, up 3.7%, led by asset management. Renewed Amundi terms added to fees, with a higher run rate of ~€5m per quarter.

• Q3 net profit was €405m, up 12.9% QoQ excluding TSB contribution and Q2 one-offs; 9M recurrent net profit was €1,096m, down 5.3% on the adjusted basis.

• 9M reported net profit including TSB was €1,376m; 9M NII was €2,694m, down 0.6% YoY, while net fees were €983m, up 2.1%.

• Recurrent costs rose 3.8% YoY, or 2.7% excluding the Paycomet reclassification; total provisions and impairments were €418m for 9M.

Outlook and guidance

• FY26 NII growth guidance eased to ~1% YoY; Q4 NII is expected to grow at a mid-single-digit rate YoY, with 2027 NII targeted at €3.9bn.

• FY26 fees are expected to grow ~4% and recurrent costs ~2%; total cost of risk is expected near 40 bps.

• FY26 recurrent RoTE target remains 14.5%, rising to 16% in 2027; performing-loan growth remains on track for mid-single digits in 2026.

• Customer margin is expected to reach ~290 bps by year-end; loan repricing is expected to support yields as deposit costs rise.