Sabadell expects ‘minimum’ dividend of 2,900 million after record results

Banco Sabadell CEO Cesar Gonzalez-Bueno announced yesterday that the planned shareholder payout of €2.9 billion in two years is a baseline “floor”, so the final dividend level will be set at the end of the year “with the books”. closed” year. “Can there be greater joy? Well, if we say that this is the lower limit, then it can be,” he said at a press conference dedicated to the results of the third quarter, in which he earned 1.295 million euros, an increase of 25.9% compared to that the same period as the previous year. “Both the size, nature, and timing of remuneration will be determined much more precisely in January.”

So far, Sabadell plans to distribute 2.9 billion euros over 18 months for 2024 and 2025, equivalent to approximately 30% of the enterprise value on the stock market. The company had already paid a cash dividend of 8 cents per share (€429 million) on October 1, representing only 15% of the total amount planned for the period, during which at least another 45 cents per share will be paid.

The CEO did not miss the opportunity to criticize the new banking tax that the government wants to introduce with its partners, despite the fact that the banking sector “tried to negotiate new terms” but the channels “were not 100% effective”. ” Gonzalez-Bueno also noted that his organization’s position on the tax rejection has not changed, but with the bill still pending, he believes there could be a “marginal improvement” regarding the current tax.

Regarding the takeover bid, Gonzalez-Bueno said it is logical that BBVA is “in a hurry” to make an offer to the Catalan company’s shareholders, since it has lost $10 billion on the stock market since announcing its plans. In his opinion, this operation “does not show much sign of success”, but even so, taking into account that the final say remains with Sabadell shareholders, he advocates that BBVA provide all the necessary information so that they can make the right decision . decision and make a decision “as soon as possible, but with all the information available in the table.”

Following the first nine months of the year, Banco Sabadell maintains its cruising speed, based on records at the end of each quarter, despite the hostile takeover process initiated by BBVA. Between January and September the company earned €1.295 million, up almost 26%, a record profit that is already close to the total profit made in 2023 – when it ended the year with a profit of €1.332 million, its best ever history.

Improved interest margins, increased volumes, as well as increased investments in companies and individuals, as well as positive dynamics in asset quality, have led the enterprise, under the chairmanship of Josep Oliu, to reduce provisions and improve the overall cost of risk. Margin (RoTE) was 13.2%, up 296 basis points.