...October 30, 2020 MADRID (S&P Global Ratings) Oct. 30, 2020--S&P Global Ratings said today that it believes Banco de Sabadell's (###/Negative/A-2) restructuring efforts are important to mitigate the impact of revenue pressure on profits and better position the bank for the future. The restructuring includes sizable cost-cutting through downsizing of its branch network and staff, and accelerates the digitalization of its business model. In our view, the restructuring responds to the necessity to offset lower operating revenue, and is possible thanks to customers' preferences shifting toward a more digital business model--a trend that has been accelerated by the pandemic. We believe the efforts will help the bank shift its business model to the new digital normal, and remain competitive in its domestic market. While we believe the adjustment to the operating structure is relevant, we estimate that future pressure on revenue will weigh on efficiency metrics. Thus, we expect cost to income will...
