- Sabadell projects a return on tangible equity (ROTE) of 14.5% for the fiscal year 2025, an improvement from approximately 14% previously observed.
- The cost of risk is expected to be 0.35%, a decrease from about 0.4% previously observed.
- Net interest income is projected to be €4.9 billion, with estimates slightly higher at €4.93 billion.
- In the second quarter of 2025, Sabadell reported a net income of €486 million, which is a 0.6% increase year-over-year and above the estimated €439.8 million.
- Net interest income for the second quarter was €1.21 billion, which is a 4.2% decrease year-over-year, meeting the estimates.
- Net fee and commission income rose by 4.5% year-over-year to €350 million, surpassing the estimated €343.8 million.
- Operating gross profit was €1.57 billion, a 2.7% decline year-over-year, marginally below the estimate of €1.58 billion.
- Pretax profit increased by 5.4% year-over-year to €706 million, above the estimate of €648.9 million.
- Provisions for non-performing loans (NPLs) fell by 32% year-over-year to €95 million, lower than the estimated €129.7 million.
- The bad loans ratio improved to 2.47%, down from 3.21% a year ago, and better than the forecasted 2.64%.
- The CET1 ratio fully-loaded increased slightly to 13.6% from 13.5% year-over-year.
- Banco Sabadell’s Board has approved an interim cash dividend of €0.07 per share for 2025 earnings, to be distributed on 29 August 2025.
- The bank anticipates a ROTE of 16% by 2027.
- Sabadell expects total costs to flatten in 2025, contrary to a previous forecast of approximately 1% increase.
- The outlook for low-single-digit growth in fees and commission is maintained for 2025.
- Analyst recommendations include 12 buys and 8 holds, with no sells.
Banco De Sabadell SA on Smartkarma
Analyst coverage on Banco De Sabadell SA by Jesus Rodriguez Aguilar on Smartkarma indicates a mix of bullish and bearish sentiments. In the report titled “BBVA/Sabadell Update: TSB Sale Shifts Dynamics, Adds Dividend Optionality,” Rodriguez highlights the impact of TSB sale on Sabadell’s value, with a potential special dividend looming. Despite regulatory constraints, BBVA maintains its bid, while market activity suggests expectations of a bid bump or re-rating.
On the contrary, in the report “BBVA/Sabadell: Trading Above Terms After Government Imposes Integration Freeze,” Rodriguez expresses bearish views. Political resistance and integration restrictions pose challenges to BBVA’s hostile bid. Sabadell trading above the implied offer value indicates investor anticipation of a revised deal or potential collapse due to governmental interventions and political complexities.
A look at Banco De Sabadell SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 4 | |
| 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
According to Smartkarma Smart Scores, Banco De Sabadell SA is projected to have a positive long-term outlook. With high scores in Dividend and Growth factors, the company is positioned well for potential future success. Additionally, its strong showing in Value and Momentum indicates favorable aspects in terms of investment attractiveness and market performance.
Banco De Sabadell SA, a commercial banking institution offering a range of services such as loans, private banking, and insurance, displays resilience despite a slightly lower score in this aspect. Operating across multiple regions globally, including Europe, the Americas, and Asia, Banco De Sabadell SA presents itself as a well-rounded and promising prospect for investors seeking a stable and growing financial entity.
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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