Banco Sabadell expects to earn €1.775 billion in 2025 and launches an €800 million share buyback program

 

El Grupo Banco Sabadell has reported a net profit attributable to shareholders of 1.775 millones de euros at the close of the 2025 financial year. Although the figure represents a slight decrease of 2,8% compared to the previous year, in homogeneous terms —excluding the extraordinary items of 2024— net profit grew by 3,4% year-on-year, driven by commercial dynamism in España and the improvement in asset quality.

 

Compensation and share buyback strategy

 

The financial institution has received the green light from Banco Central Europeo (BCE) to implement a new share buyback program worth 800 millones de eurosThe execution of this operation will begin next Monday, February 9th. It is divided into €365 million charged to the 2025 results and €435 million from accumulated excess capital.

 

Adding the cash dividends already distributed and the extraordinary dividend derived from the sale of TSB, Banco Sabadell plans to distribute approximately 4.000 millones de euros among its shareholders over a 12-month period. As the CEO pointed out, César González-Bueno: “We closed the year fulfilling the commitments made, which allows us to confirm the forecasts of the 2025-2027 Strategic Plan”.

 

Key Indicator (2025)	Value / Figure
Net Profit Attributable	1.775 millones de euros
Share Buyback Plan	800 millones de euros
RoTE Profitability	14,3 %
CET1 solvency fully-loaded	13,11% (post-distribution)
Total remuneration (12 months)	~4.000 million euros

 

Boost to the banking and credit business in Spain

The entity's balance sheet reflects a strong commercial momentumespecially in the domestic market. Outstanding loans grew by 2,4% at the group level, reaching €160.708 billion. Excluding the British subsidiary TSB, credit investment in España It climbed 5,4% year-on-year.

 

• Mortgages: Year-on-year increase of 5,2%, reaching 39.800 billion euros.
• Consumer Credit: Exponential growth of 17,8% to 5.400 billion euros.
• Business: The total portfolio amounted to 44.800 billion euros, up 2,4%.
• Customer Resources: Increase of 6,4% exTSB, totaling 184.692 million euros.

 

For his part, the financial director, Sergio PalavecinoHe emphasized that balance dynamics allow “self-finance the growth of the loan portfolio and offer attractive remuneration”with an eye toward achieving a RoTE of 16% at the end of the strategic plan.

 

Quality of the balance sheet and evolution of the TSB subsidiary

 

The ratio of delinquency of the Grupo Banco Sabadell It continued its downward path until it reached the 2,37 %This was accompanied by an improvement in the coverage of non-performing assets. This risk management has allowed for a 23,5% year-on-year reduction in provisions.

 

Regarding international activity, TSB contributed €318 million to the group's profit, 25,6% more than the previous year. Following the sale agreement of the British subsidiary for £2.650 billion, the tangible net book value (TNAV) generated since the agreement has increased by an additional £154 million.

 

Key points and frequently asked questions about Banco Sabadell's results

What is the total shareholder payout?

The entity plans to distribute 4.000 billion euros over 12 months, including cash dividends and a special dividend from the sale of TSB and an €800 million share buyback plan.

What is the solvency status of the entity?

El Banco Sabadell presents a capital ratio CET1 fully-loaded of 13,11% after considering the distribution of excess capital, demonstrating a solid organic generation of 196 basis points in the year.

What financial targets have been set for 2026?

The entity projects a Recurrent RoTE of 14,5% (exTSB), net interest margin growth of over 1% and an increase in fees in the mid-single digits.