- Sabadell’s 4Q net income was €532 million, exceeding the estimate of €428.5 million.
- Net interest income reached €1.28 billion, beating the forecast of €1.25 billion.
- Fee and commission income came in at €347 million, higher than the expected €339.2 million.
- Operating gross profit totaled €1.61 billion, surpassing the estimate of €1.57 billion.
- Pretax profit was €669 million, compared to the estimated €596 million.
- Stage 3 exposures decreased by 16% year-over-year to €4.84 billion, under the forecast of €5.02 billion.
- The bad loans ratio improved to 2.84% from 3.52% year-over-year, better than the estimated 2.98%.
- CET1 fully-loaded ratio stood at 13%, slightly down from 13.2% year-over-year.
- For 2024, Return on Tangible Equity improved to 14.9% compared to 11.5% the previous year.
- The forecast for 2024 shows a cost of risk around 0.4% and a net interest income estimated to exceed €4.9 billion.
- The bank’s forecast for 2026 anticipates a return on tangible equity above 14%.
- Sabadell plans to increase shareholder remuneration for 2024 and 2025 to €3.3 billion from the previously estimated €2.9 billion.
- A cash final dividend of €12.44 cents per share is proposed for 2024.
- Two share buybacks worth up to €1 billion will be proposed.
- Estimated remuneration expected over the next 13 months is €0.53 per share, equating to 22% of the current share price.
- Low single-digit growth in fees and a banking tax of about €140 million are anticipated in 2025.
- Total costs, including amortization, are projected to increase by approximately 1% in 2025.
- Sabadell’s CET1 ratio was 14% pre-distribution of excess capital.
- The bank plans to resume buyback against 2023 earnings for an outstanding amount of €247 million and introduce a new buyback of up to €755 million.
- Analyst recommendations include 15 buys and 7 holds, with no sells indicated.
Banco De Sabadell SA on Smartkarma
On Smartkarma, independent analyst Jesus Rodriguez Aguilar provides insightful coverage of Banco De Sabadell SA, shedding light on the complexities surrounding BBVA’s takeover bid. In his report titled “Sabadell’s Dividend Strategy and the BBVA Takeover Bid,” Rodriguez highlights how Sabadell’s dividend and share buyback plans could hinder BBVA’s bid, facing regulatory hurdles and uncertain shareholder approval. The market anticipates BBVA may need to enhance its offer by 10-20% to secure shareholders’ support, as BBVA’s CEO remains firm on the current terms.
In another report, “BBVA’s Bid for Sabadell: A Tough Road Ahead,” Rodriguez delves into the challenges BBVA faces, such as encountering resistance from Sabadell shareholders, regulatory obstacles, and defensive maneuvers by Sabadell. With Sabadell’s defensive strategies, including a substantial shareholder return plan and potential treasury share expansion, the success of BBVA’s bid appears increasingly uncertain. The complex landscape surrounding the merger review and potential stakeholder influences suggests a bumpy road ahead for BBVA’s acquisition aspirations.
A look at Banco De Sabadell SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 4.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Banco De Sabadell SA, a commercial bank known for its strong value and growth prospects, has received high ratings across key factors. With top scores in Value and Growth, the bank is positioned favorably for long-term success. Additionally, its robust Momentum score suggests positive market momentum and investor interest. However, the lower Resilience score indicates potential vulnerabilities that need to be monitored closely. Furthermore, the solid Dividend score reflects the bank’s commitment to rewarding shareholders. Overall, Banco De Sabadell SA shows promise for sustained growth and value creation.
Attracting deposits and providing a wide range of banking services, Banco De Sabadell SA is a well-established financial institution operating across multiple regions. With offerings including mortgage and consumer loans, private banking services, and credit card sponsorship, the bank serves a diverse customer base. Despite facing some resilience challenges, the bank’s emphasis on value, growth, and dividends positions it as a competitive player in the banking sector. As Banco De Sabadell SA continues to expand its presence globally, its strong performance in key areas underscores its potential for future success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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