Bulletin: Banco de Sabadell S.A. Is Delivering Profitability Improvements

MADRID (S&P Global Ratings) Jan. 26, 2023--S&P Global Ratings today said that Banco de Sabadell S.A. (Sabadell)'s profitability prospects remain positive for 2023 after solid performance in 2022. Sabadell (BBB/Stable/A-2) reported a €859 million profit for full-year 2022, translating to a 7.8% return on tangible equity (RoTE) versus 5.05% a year before. This came on the back of higher revenue and lower provisions and, to a lesser extent, reduced recurrent costs. Boosted by interest rates tailwinds, Sabadell now targets an RoTE of 9% for 2023, or 10.5% excluding the banking tax. Even though we project a slightly lower than 9% RoTE and note that Sabadell's peers will also benefit from higher rates, we regard such a level as more commensurate

...January 26, 2023 MADRID (S&P Global Ratings) Jan. 26, 2023--S&P Global Ratings today said that Banco de Sabadell S.A. (Sabadell)'s profitability prospects remain positive for 2023 after solid performance in 2022. Sabadell (###/Stable/A-2) reported a 859 million profit for full-year 2022, translating to a 7.8% return on tangible equity (RoTE) versus 5.05% a year before. This came on the back of higher revenue and lower provisions and, to a lesser extent, reduced recurrent costs. Boosted by interest rates tailwinds, Sabadell now targets an RoTE of 9% for 2023, or 10.5% excluding the banking tax. Even though we project a slightly lower than 9% RoTE and note that Sabadell's peers will also benefit from higher rates, we regard such a level as more commensurate with the magnitude and depth of its franchise. The bank's 2022 results also showed no apparent signs of asset quality deterioration, with a 3.41% reported problem loans ratio versus 3.65% a year before. Given the high share of lending...

Bulletin