admin Sabadell Bank increases its shareholder payout in 2025 after a significant jump in quarterly net profit. The bank reported a first-quarter net income of €489 million, up 59% year-on-year. This exceeded analyst expectations of €434 million. The profit rise stems partly from a lower banking tax burden.
In contrast to 2024, the bank applied the new banking tax evenly across quarters this year. As a result, it paid only €31 million this quarter compared to €192 million a year earlier. This accounting shift contributed significantly to the profit surge.
As part of its strategy to defend against BBVA’s takeover, Sabadell raised shareholder returns. The payout promise now stands at €1.3 billion in 2025. Earlier, in February, the bank had committed €1.2 billion. This increase includes both cash dividends and share buybacks.
Sabadell also reported a healthy capital position. Its core tier-1 capital ratio rose by 29 basis points to 13.31%. This strengthens the bank’s ability to deliver sustained value while supporting independent growth.
However, lower interest rates affected Sabadell’s lending margins. The net interest income fell 1.3% year-on-year to €1.22 billion. Still, this figure aligned with market forecasts and was supported by robust domestic and UK operations.
The bank had earlier announced a record full-year profit of €1.83 billion in 2024. This represents a 37% year-on-year increase. Fourth-quarter profits alone jumped 19%, reaching €532 million.
Sabadell now plans to return €3.3 billion to shareholders across 2024 and 2025. This includes 20.44 cents per share in cash dividends for 2024, with similar returns expected in 2025. Shareholders may receive up to 61 cents per share over the two years.
Sabadell attributes part of its performance to TSB Bank, its UK arm. TSB recorded £208 million in net profit, up 18.9% from the previous year. This added €253 million to Sabadell’s annual profits.
Meanwhile, BBVA’s hostile takeover attempt remains under antitrust review. Spain’s CNMC extended the process, delaying decisions into late 2025. Government opposition and political resistance from Catalonia also cast uncertainty over the deal.
To reinforce independence, Sabadell will relocate its headquarters back to Catalonia. Combined with its rising payout and solid earnings, Sabadell aims to prove its standalone strength. The bank’s leaders express confidence in long-term growth and value for stakeholders.
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