Banc Sabadell profits soar 55% to reach €1.3bn

Banc Sabadell saw profits rise to a record €1.332 billion in 2023, as published this Thursday in a report by the Spanish stock market regulator (CNMV).

The figure represents an increase of 55.1% compared to 2022, when the banking institution's profits stood at €859 million.

The bank saw income of €6.1 billion for the banking business, up 15.5% year-on-year, with an interest margin of €4.723 billion (+24.3%), which offset the 7% fall of net commissions.

Profitability rose to 11.5%, while the CET1 capital ratio stood at 13.21%.

Sabadell's British business, TSB, also remains profitable, making €195 million last year.

Given these results, Banc Sabadell's Board of Directors has approved a supplementary dividend payment of three cents per share and a new share buyback worth a total of €340 million.

If it is validated at the shareholders' meeting, the total remuneration for shareholders will be €666 million, 55% more than in the previous year.

During 2023, Banc Sabadell's recurring costs grew by 3.5% to €2.982 billion.

With interest rates rising, the granting of new mortgages fell by 34%, with a value of €3.764 billion.

On the other hand, the granting of consumer credit rose by 25% to €2.102 billion. Medium and long-term financing for companies also grew by 7% annually to €11.716 billion.

Credit card billing rose by 7% to €23.493 billion, while point-of-sale operations grew by 11% to €52.82 billion euros, with 1.884 billion transactions.