Banco Sabadell will earn 1.332 million in 2023, up 55% from last year
Banco Sabadell ended 2023 with a profit of 1.332 million euros, up 55.1% compared to 2022. by increasing the interest margin and reducing the volume of provisions “due to the improvement in the credit quality of the organization.”
In a statement sent this Thursday to the National Securities Market Commission (CNMV), the organization explained that these factors “offset the reduction in the collection of commissions from clients and the increase in tax bills.”
The Board of Directors approved payment of additional dividends of 0.03 euros per share and share repurchases amounting to 340 million, so that total shareholder compensation for the year as a whole will be 666 million euros, up 55% on last year.
The bank explained that it raised Rote’s margin to 11.5% and CET1 capital to 13.21%, a level it plans to maintain this year.
The bank’s CEO, Cesar Gonzalez-Bueno, assured that these results are “a consequence deep transformation He noted that the bank’s reliability allows it to “significantly increase shareholder compensation” and is optimistic about the bank’s development in the future.
For his part, CFO Leopoldo Alvear highlighted the improvement in profitability and the strengthening of the balance sheet. reduction of problem assets and increasing coverage.
Higher margin
The organization explained that Income from banking business amounted to 6.109 million, which is 15.5% more. than in 2022, and that interest margin rose 24.3% to 4.723 million, while net commissions fell 7% to 1.386 million.
Regular expenses amounted to 2.982 million, which is 3.5% more than a year earlier, as a result of which the bank’s efficiency ratio increased by 2.5 points to 42.6%.
In its turn, customer profits increased It ended the year at 2.99% after increasing 46 basis points year over year.
Banco Sabadell ended 2023 with a balance sheet of 149.798 million euros, a decline of 4.1% compared to the same period last year.
More loans to companies
The company explained that the provision of the loan “was different trends depending on product type and a group of clients.
Consumer lending and business finance continued to grow “both in investment and circulation”, while mortgage signings continued to decline due to an increase in interest rates, 34% less, to $3.764 million.
The US Federal Reserve maintains interest rates and rules out the possibility of starting cuts in March
In particular, new production of loans to companies amounted to 11.716 million, representing a year-on-year increase of 7%, and the volume of credit lines increased by 1% compared to 2022. Consumer loans grew by 25% in Spain in 2023 to 2.102 million, with card billing increasing by 7% and POS transactions by 11%.
Resources
Client resources managed, both on- and off-balance sheet, remained “virtually flat” in 2023 at 201.449 million at year-end. Client resources in investment and savings in Spain increased by 9.1 billion to 56.6 billion. Off-balance sheet resources at the end of the year amounted to 40.561 million, representing an annual increase of 5.4%, while on-balance sheet resources decreased by 2%. , up to 160.888 million.
From my side, The bank’s total assets amounted to 235.173 million euros.representing a year-over-year decrease of 6.4%, primarily driven by the return of $17,000 million from TLTRO III.
Balance quality
Balance sheet quality has also improved in terms of liquidity and credit quality.with the loan-to-deposit ratio improving to 94%, “with a balanced retail funding structure” and the liquidity coverage ratio (LCR) reaching 228% at the end of the year.
Problem assets decreased by 223 million, to 6.748 million, of which 5.777 million were doubtful loans and 971 million were collateral assets.
The default rate was 3.52%.compared to 3.41% for the same period in 2022, although down from 3.54% in the previous quarter.
Coverage of problem assets amounted to 55.6%, coverage of doubtful loans increased to 58.3%, collateral assets – 39.6%.
This resulted in a bank cost of credit of 43 basis points and a total cost of risk of 55 basis points.
TVS
TBS ended the year with individual net profit was £175 million (€205 million), up 70.9% on the previous year.and the group’s positive contribution amounted to €195 million.
The business increased its recurring margin by 3.9% year-on-year to £361 million (€422.8 million), while interest margin increased by 4.1% to £1,022 million (€1,196.8 million). ).
“It should be noted that TSB has initiated an efficiency improvement plan to reduce costs and thus focus on accelerating its core business of mortgage marketing, which it has historically specialized in,” the bank explained.