Banco Sabadell boosts profit to €791m, increases dividend by 21% amid BBVA takeover bid
The Catalan company said it would pay an interim dividend of 0.08 euros per share in October, almost three times the 0.03 euros it paid in interim dividends last year and its largest cash payout since 2010.
In the midst of the BBVA takeover bid, Sabadell Bank ended the first half of the year with a profit of 791 million eurosA 40.3% more than in the same period last year, according to a statement sent to the National Securities Market Commission (CNMV) on Tuesday.
The company explained that the increase in profit was due to high growth rates in business – especially in the area of SME and corporate finance – and mortgage lending, as well as a continuous improvement in the credit risk profile, “which allowed it to once again improve asset quality and reduce provisions.”
General Director of the Bank, Cesar Gonzalez-Buenonoted that the results “are a consequence of the radical transformation of the business carried out over the past three years” and stressed that profits are at a record level.
He noted that the organization’s strategy “is yielding results,” and verbatim assured that the bank is more strong and effectivewith a strong financial and operational foundation focused on accelerating growth and profitability.
On the other hand, the organization confirmed that planned compensation to shareholders by 2025 – 2.9 billion, which is 500 million more than originally planned, and the payment is 60% of the current year’s profit. The various payments made on a regular basis over these two years will amount to a total of 0.53 euros per share, equivalent to 27% of the value of each title.
The first payment will be made in October next year and will consist of an interim cash dividend of €0.08 per share, implying a total payout of €429 million, 33% more than the sum of the two dividends paid in the previous year.
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After reporting its results, Banco Sabadell led gains on the Ibex 35 index at the open on Tuesday. advance payment 1.45%which resulted in a share price of 2,026 euros per share.