Josep Oliu: “Banco Sabadell creates great value for its shareholders as one”

• The president of the company assures more than 300 shareholders that ““We face many months of uncertainty, and timing and decisions regarding competition will be very pressing.”
• Oliu warned of the risk of BBVA’s hostile takeover bid and the need for Sabadell shareholders to have clear information
• CEO Cesar González-Bueno emphasizes that thanks to the transformation of the company in recent years, “we have an attractive project with a future.”
• The bank will pay €2.9 billion in 2024 and 2025 and has room for improvement with updated profitability forecasts.

October 3, 2024

He Banco Sabadell President Josep Oliu, declared this Thursday at a meeting in front of more than 300 shareholders of the enterprise that the bank’s project itself creates great value for all its shareholders, as evidenced by the evolution of the share, which led to an improvement in the target price by analysts, and to become the European bank with the highest revaluation of its securities this year.

This was stated by the president of the structure during his speech together with the General Director of Banco Sabadell, Cesar Gonzalez-Bueno, at a meeting held at the bank’s corporate center in San Cugat.

Top managers of the company expressed confidence that in the future levels of profitability will be achieved that exceed current ones, which will lead to an increase in the value of shares. Oliu in this sense, he emphasized that profitability (RoTE) is expected to continue to grow above the 13.1% recorded at the end of the first half of the year and that in 2025 it will remain above this figure.

In this sense, Josep Oliu also assessed that the management team has repeatedly exceeded its targets and that the current year “started very positively” in terms of financial performance.

For his part, the General Director of Banco Sabadell, Cesar Gonzalez-Bueno, emphasized that Banco Sabadell “This is an attractive project with a future that has not yet reached its peak.”. “Our strategy since 2021 has transformed the bank and its results: we have maximum profit” and “a strong capital position.”“, he noted.

For this reason, the CEO emphasized that Banco Sabadell’s profitability is “sustainable” over time, continues to grow and has not yet “reached its ceiling”, meaning that “our commitment to rewarding shareholders is firm.”

Obligations to the shareholder

During a meeting with shareholders, President Josep Oliu said that “The Board of Directors rejected BBVA’s previous merger proposal because it significantly undervalued the Banco Sabadell project and its growth prospects as an independent entity.”.

Both president how is he General manager In response to questions from shareholders, they stated that the terms of BBVA’s offer have not changed during this time.

The company’s directors explained that, in accordance with its remuneration policy, the bank would pay over the next 18 months an amount equivalent to approximately 30% of its market value. Based on this, they will receive €2,900 million allocated to 2024 and 2025 results, representing 53 cents per share.

“Banco Sabadell shareholders will receive regular and sustainable long-term rewards from the bank’s solo project due to its excellent prospects for ongoing profitability, a clearly defined strategy and minimal exposure to highly volatile markets.”influenced Gonzalez-Bueno.

Hostile takeover extends deadlines

Regarding the timing of the operation and due to its hostile nature, which has no precedent in Spain over the past 20 years, Oliu stated that the process will be long and could last until the middle of next 2025.

Banco Sabadell’s president explained that previous experience with this type of transaction suggests that it would be normal for the CNMV decision to be made after the CNMC decision, so that shareholders have all the information on the table. Josep Oliu stated in this sense that “We are in the midst of many months of uncertainty, and timing and decisions regarding competition will be very pressing.”

At this point, both Oliu and Gonzalez-Bueno have asked about it. It is very important that the proposal contains all the information. and for this purpose BBVA must clarify certain scope and consequences and must present different resulting scenariosincluding a scenario of costs and synergies if the merger does not go through. In addition, they reminded shareholders that they do not need to make any decision yet and that once the board of directors of Banco Sabadell has analyzed all the details and published a report, shareholders will decide whether to sell their shares or not.