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Banco Sabadell Profit Falls 29% on Lower Margins and One-Off Charges

A pending gain from selling TSB will fund a special dividend.

Overview

  • Banco Sabadell reported €347 million in first‑quarter net profit, a 29.1% drop from a year earlier, in a filing to Spain’s market regulator.
  • Earnings were hit by weaker net interest income of €872 million and lower fees, plus €55 million in early‑retirement costs and €14 million in sterling‑hedge costs tied to the TSB sale.
  • The £2.86 billion sale of UK unit TSB will be booked in the second quarter and will fund a €0.50 per share special dividend payable on May 29.
  • Balance‑sheet strength improved, with the core capital ratio at 13.2% and the share of bad loans down to 2.55% with 71% coverage.
  • Business volumes kept rising and guidance held, as loans excluding TSB grew 5.6% and the bank kept a 16% 2027 return goal while flagging a gradual margin recovery this year.