Q4 2025 Banco de Sabadell SA Earnings Call Transcript
Key Points
- Banco de Sabadell SA (BNDSF) reported a net profit of EUR 1.8 billion for 2025, aligning with year-end targets.
- The bank's asset quality improved, with non-performing assets decreasing by 17% year on year and a coverage ratio increase to 64%.
- Shareholder remuneration for 2025 was EUR 1.5 billion, including EUR 700 million in cash dividends and an EUR 800 million share buyback program.
- Return on tangible equity stood at 14.3%, and the core Tier 1 ratio was 13.1%, indicating strong capital generation.
- The bank's strategic plan targets for 2026 and 2027 are ambitious yet achievable, with a focus on execution and future growth opportunities, particularly in digitalization and AI.
- CEO Cesar Gonzalez-Bueno announced his resignation, which could lead to transitional challenges as Marc Armengol takes over.
- New mortgage origination in Spain decreased by 3% year on year, and the bank has been reducing its market share in new mortgage lending.
- Provisions at TSB increased by around 50% year on year, impacting the overall cost of risk.
- The bank's business was less dynamic than expected following the tender offer period, although commercial momentum has since been regained.
- The cost of risk is expected to remain at around 40 basis points in 2026, which could be seen as conservative given the current positive asset quality dynamics.
Good morning, and thank you for joining Sabadell's results presentation for the fourth-quarter and the full-year 2025. We are joined today by our CEO, César González-Bueno; and our CFO, Sergio Palavecino.
The presentation will follow a similar format as in previous quarters. First, our CEO will walk us through the key highlights of the year. Then our CFO will go into the financials and the balance sheet, before our CEO concludes with closing remarks.
Finally, we will open the floor for a live Q&A session where you can ask your questions.
So César, over to you.
Thank you, Lluc, and good morning, everyone. We announced yesterday that the Board of Directors of the bank and I have agreed on my resignation as Sabadell's CEO, while Marc Armengol has been appointed new CEO. These changes will take place around May, following our AGM, and once
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