Sabadell gains 78% thanks to subsidiary TSB and lower costs

The recurring margin (net interest income + commissions – costs) increased 18.5% year-on-year. the asset has arrived 7% return on equity (ROTE)thus exceeding the objectives of the strategic plan, the CEO César González-Buenoensures that the bank has achieved “all targets for this year” and its transformation.One of the most important milestones of retail banking commercial managers specializing in mortgages, insurance and savings-investmentlaunch of new digital account as well as simulator and new digital mortgage portal.

and finance manager, Leopold Alvear, underlines that the risk profile “continues to improve with the NPL ratio and reductions in problem assets”. The solvency ratio stands at 12.48%, representing an improvement of 30 basis points in the first six months of this year.

Revenue from the banking business (interest margin + net commissions) increased by 3.8% year-on-year to €2,486 million through June. Net interest income increased by 4.2% compared to last year, Thanks to TSB’s larger contribution, it reached 1,757 million (14.3% more than the previous year).

net commissions amounted to 729 million euros, representing an annual growth of 2.8% and also a higher TSB contribution (14.8% more than the previous year). total operating costs totaled 1,440 million to June, down 4.8% per yeardue to reductions in overheads as well as savings in personnel costs after the implementation of efficiency plans. In the second quarter, total costs fell by 1.6%, in line with estimated savings of 110 million euros (130 million per year from 2023) in 2022.

mortgage registration

Sabadell’s outstanding loan closed the first half of this year with a balance of €158.074 million, corresponding to 114.171 million excluding TSB. Investment growth 4.1% annually good dynamics across all geographies and 2.2% QoQ.

Mortgage production in Spain, which reached 1.501 million euros in the last quarter, draws attention. “represents a historic production record and a 19% increase over the previous quarter”. New consumer credit increased by 17% quarter-on-quarter to 805 million euros.

Card billing increased by 16% compared to the first quarter of the year to 5,541 million, while point-of-sale terminals (POS) increased by 27% to 12,111 million Euros in the same period. It is also a “historical billing record” when it comes to both cards and POS terminals.Mutual funds decreased by 5% compared to the previous quarter and reached 22,538 million due to the volatility in the financial markets.

At the end of June 2022, on-balance sheet client funds totaled €163,391 million (122.286 million without TSB), increasing by 3.8% year-on-year (5.5% without TSB). Also up 1.3% in the quarter (2.7% without TSB)positive development of time deposits and time deposits. Vision account balances totaled €147,892 million (108,447 million without TSB), up 5.6% (7.6% without TSB) and 0.9% (2.0% without TSB) compared to the same period last year. Time deposits reached € 15,980 million (14,320 million without TSB) and fell 9.4% (7.3% without TSB).

At the end of June 2022, off-balance sheet client funds It amounted to 38,831 million euros, down 4.7% year-on-year due to the sale of BancSabadell d’Andorra and 4.4% quarter-on-quarter due to volatility in financial markets. The group’s total assets amounted to €257,229 million (205,047 million without TSB); this represents 2.8% year-on-year and 1.6% quarter-on-quarter growth.

CET1 ‘phase in’ rate is 12.61% By the end of June and by 2 basis points compared to the previous quarter. For its part, the ‘fully loaded’ CET1 ratio was 12.48%, up three basis points in the quarter. Total capital ratio ‘stage’ is 17.11% at the end of the quarter, above the legal requirement. Regarding liquidity management, the LCR ratio (‘Liquidity Coverage Ratio’) reaches 225% at the group level.

this troubled assets They fell in the quarter following the sale of the Austrian portfolio of 400 million ‘unsecured’ loans. A total of 6,991 million euros at the end of June 2022, of which 5,714 million are doubtful loans and 1,277 million are foreclosed assets. The collateral of non-performing assets is 52.3%, the collateral for doubtful loans (stage 3) is 55.3%, and for foreclosed assets 39.0%. guilt rate exhibits a positive behavior and is down at 3.31% on both a quarterly and annual basis.