Banco de Sabadell, S.A. (SAB) Earnings Call Transcripts

Banco de Sabadell, S.A.'s Latest Earnings Call - Q1 FY2026

In the first quarter of 2026, Banco de Sabadell (SAB:ES) reported a net profit of EUR 284 million, marking a significant milestone as the bank completes the sale of TSB and announces an extraordinary cash dividend of EUR 0.50 per share. Core revenues are expected to have bottomed out, with management signaling improvements in the coming quarters as net interest income (NII) is projected to grow at a low single-digit rate. The bank maintains its full-year guidance of a 16% return on tangible equity by 2027, despite facing challenges in new lending and competitive pressures in the mortgage sector.

Reported metrics

Guidance from management

Management has maintained its full-year guidance for a 16% return on tangible equity by 2027, while projecting NII growth of over 1% for 2026. They expect core revenues to improve as the year progresses, despite challenges in new lending volumes.

What management said

Welcome to Sabadell Results Presentation for the First Quarter of 2026. Joining us today are our CEO, Cesar Gonzalez-Bueno; and our CFO, Sergio Palavecino. The presentation will follow the same structure as in previous quarters. Our CEO will begin by highlighting the key developments of the quarter and discussing the most relevant topics. Then our CFO will review financial results and the evolution of the balance she...

Thank you, Cesar, for your commitment and for everything you have accomplished this year. We will now open the Q&A session. I would kindly ask you to limit your participation to a maximum of two questions. So operator, could you open the line for the first question, please?

What analysts pressed on

Analysts expressed concerns regarding the bank's ability to maintain loan growth in a competitive mortgage market. There were questions about the impact of the early retirement plan on future cost targets and whether the bank's current strategies would be sufficient to achieve its growth objectives in light of market conditions.

Main topics on the call

• Completion of TSB Sale — The sale of TSB has been finalized, generating significant capital for Banco de Sabadell. Management stated, "This transaction will unlock more than 400 basis points of capital for shareholders," which supports the extra...
• Core Revenue Expectations — Management indicated that Q1 2026 marked the bottom for core revenues, with expectations for improvement as repricing pressures on NII ease. "We see core revenues improving going forward," signaling a positive outlook fo...
• Early Retirement Plan — An early retirement plan was launched to enhance efficiency, expected to incur one-off costs of EUR 90 million in 2026 but generate annual savings of EUR 40 million. This initiative is aimed at optimizing workforce align...
• Loan Growth Challenges — New lending, particularly in mortgages, decreased by 24% year-on-year, attributed to competitive pricing conditions. Management noted, "We have intentionally reduced our market share of new mortgages lending," reflecting...

Read the full Banco de Sabadell, S.A. transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 37 Banco de Sabadell, S.A. earnings call transcripts on record, spanning January 30, 2020 to July 24, 2026. Based on this history, Banco de Sabadell, S.A. reports quarterly. The most recent call on file is dated July 24, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

SAB

Exchange

BME

Country

ES

Sector

Financials

Industry

Banks

Calls on record

37

First call

January 30, 2020

Most recent

July 24, 2026

Reporting cadence

quarterly