Q4 2024 Banco de Sabadell SA Earnings Call Transcript
Key Points
- Banco de Sabadell SA (BNDSF) reported a record annual net profit of EUR1.8 billion, reflecting a return on tangible equity of 14.9%.
- The bank's commercial activity showed strong momentum, with performing loans growing by 4.7% and customer funds by 7.1% year-on-year.
- Asset quality improved significantly, with total non-performing assets (NPAs) decreasing by 16% and the coverage ratio increasing to 59%.
- The bank's core tier 1 ratio stands at 13%, indicating a strong capital position after accounting for excess capital distribution.
- Banco de Sabadell SA (BNDSF) has been included in the Dow Jones Sustainability World Index, highlighting its commitment to sustainability.
- Net interest income (NII) showed a decline of 1.2% in the quarter when excluding one-off items, due to downward repricing.
- Group fees declined by 2.1% year-on-year, impacted by lower current account maintenance fees.
- Recurrent costs grew by 2.7% year-on-year, slightly above the initial guidance.
- The bank's cost of risk, although improved, still stands at 42 basis points, indicating room for further reduction.
- The bank faces challenges in maintaining NII resilience in a lower interest rate environment, with expectations of a low single-digit decline in 2025.
Thank you for joining us for Sabadell results presentation for the full year 2024. My name is Lluc Sas. I'm the Head of Investor Relations and Ratings. And presenting today are our CEO, Cesar Gonzalez-Bueno and our new CFO, Sergio Palavecino.
Today's presentation will take the following structure. Our CEO will start by going through the key developments of the year before providing some details on the most significant topics. Our CFO will then discuss financial results, asset quality, liquidity, and capital before our CEO concludes with some brief closing remarks, including the main achievements in 2024 and the guidance for 2025.
I will now hand over to Cesar Gonzalez-Bueno to kick off our presentation.
Thank you, Lluc. Good morning, everybody, and welcome, Sergio, to your first of many to come quarterly results presentation as CEO at Banco de Sabadell. Let's
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