Banco Sabadell profit falls 1% to 1,376 million euros after TSB sale

Profit slips on the TSB sale

Banco Sabadell earned 1,376 million euros in the first nine months of 2026, 1% less than a year earlier, according to a filing with Spain's stock market regulator, the CNMV. The fall is explained by TSB, the British unit the bank sold to Santander in May, which contributed to results for only the first four months of the year. TSB added 79 million euros this year, compared with 242 million euros in the first nine months of 2025. Excluding TSB, profit rose to 1,297 million euros from 1,148 million a year earlier, although the bank noted that without this year's extraordinary effects the figure would have been lower than a year before.

Jan-Sep 2025 (nine months)242

Jan-Sep 2026 (four months owned)79

Jan-Sep 2025 (nine months)

242 million euros

Jan-Sep 2026 (four months owned)

79 million euros

Data from the article text

One-off gains and recurring earnings

The sale generated capital gains of 322 million euros. Restructuring costs, including an early retirement plan, reduced the net one-off effect to 201 million euros in the bank's favour. Stripping out those items, recurring profit reached 1,096 million euros, 5.3% lower than a year earlier, though it has risen quarter by quarter since spring. Third-quarter profit stood at 405 million euros excluding TSB, 13% above the April to June quarter, helped by higher interest and fee income and stable recurring costs. Return on tangible equity reached 14.2%, while total assets fell 18.5% over the year to 199,258 million euros.

Chief executive Marc Armengol said in a statement that the bank has kept its focus on growth and efficiency.

“We have once again demonstrated our capacity to grow the business sustainably, while improving revenue and containing costs.”

Revenue, lending and the Spanish focus

Banking revenue, combining net interest income and fees, reached 3,677 million euros, up 0.1%. Net interest income stood at 2,694 million euros, down 0.6%, although it rose 2% in the third quarter to 920 million euros. Fee income climbed 2.1% to 983 million euros, helped by an expanded agreement with the French asset manager Amundi, and the bank expects its interest margin to rise around 1% over the full year. Credit grew 4% year on year to 124,913 million euros, while mortgages increased 3.5% to 40,716 million euros. A year after the end of BBVA's takeover bid, the bank has refocused on Spain now that TSB is gone. In its statement to the CNMV, the bank said the results

“This performance shows the strength of the business in Spain and the bank's capacity to keep driving profitable and sustainable growth.”

Dividend, buyback and capital

The bank will pay an interim cash dividend of 7 cents per share on 29 December, totalling 325 million euros. The payment comes on top of a share buyback of 331 million euros launched in July, of which 57 million euros, or 17% of the total, remains to be executed. Shareholders also received an extraordinary dividend of 50 cents per share in May, after the TSB sale. The CET1 fully loaded capital ratio stood at 13.12%, and the bank's strategic plan calls for distributing all capital above 13%, according to El Confidencial.