Cesar Gonzalez-Bueno, CEO of Sabadell, noted this Thursday during his participation in a meeting with analysts organized by Goldman Sachs – advisor to the Catalan company for the operations of BBVA – that the target price of its shares has improved by 25% after presenting the forecast for the first quarter of the year .
In his opinion, this improvement is the result of the bank’s good profitability prospects. CFO of Sabadell, Leopoldo Alvear, explained that based on the results of the first quarter of 2024, the return on equity RoTE was 12.2%, in accordance with the annual goal.
The head of the company noted that these prospects are also confirmed by the increase in the credit risk rating assigned by Fitch Ratings and its inclusion in the MSCI world index.
Key factors that led to improved forecasts relate to good interest margin dynamics – “optimal” interest rate margin dynamics in Spain are expected in 2024, with a significant additional contribution from TSB from 2025 thanks to its structural coverage; That cost containment; reducing the cost of risk, that the improvement path of recent years will continue through initiatives related to risk management, new concession and recovery; And improving TSB profitability driven by strong interest margins and ongoing cost reduction programme.
During his speech, the head of the bank also took the opportunity to remind that The company plans to reward the shareholder in the amount of 2,400 million euros. assigned to 2024 and 2025, equivalent to 0.45 euros per share.