Banco Sabadell closed 2023 with a profit of 1,332 million euros, an increase of 55.1% compared to 2022 due to the increase in the interest margin and the decrease in the volume of provisions “due to the improvement in the credit quality of the institution.”
In a statement sent to the National Securities Market Commission (CNMV) this Thursday, the organization explained that these factors “compensated for the decrease in commission collection from customers and the increase in the tax bill.”
The board of directors approved the project Complementary dividend payment of EUR 0.03 per share and with the buyback of 340 million shares, the total remuneration for shareholders for the whole year will be 666 million euros, 55% more than in the previous year.
The bank announced that it increased Rote profitability to 11.5% and CET1 capital remained at 13.21%, the levels it plans to maintain for this year.
The bank’s CEO, César González-Bueno, assured that these results were “consequent.” deep transformation He noted that the bank’s solidity allowed “a strong increase in shareholders’ remuneration” and was optimistic about the future development of the organization.
Financial director Leopoldo Alvear emphasized the improvement in profitability and the strengthening of the balance sheet: ” reducing non-performing assets and an increase in coverage.
higher margin
The business explained: Banking business revenue increased by 15.5% to 6 billion 109 million Compared to 2022, the interest margin increased by 24.3% and reached 4,723 million, while net commissions decreased by 7% to 1,386 million.
Recurrent costs increased by 3.5% on an annual basis to 2 billion 982 million liras, thus the bank’s efficiency rate increased by 2.5 points to 42.6%.
For your part, customer margin increased It increased by 46 basis points on an annual basis, reaching 2.99% at the end of the year.
Banco Sabadell closed 2023 with a balance of 149 billion 798 million euros, which means a decrease of 4.1% compared to the previous year.
More loans to companies
The business is responsible for giving loans different trends depending on product type and customer group.
While consumer credit and business financing continue to increase “in both investment and circulation” mortgage signature continued the contract It decreased by 34 percent to 3 billion 764 million due to the increase in interest rates.
Specifically, new loan production to companies reached 11,716 million; This represents an annual increase of 7%, while the volume of credit lines increased by 1% compared to 2022. Consumer loans increased by 25% in Spain. While it increased to 2.102 million in 2023, there was a 7% increase in card billing and an 11% increase in POS transactions.
resources
Client resources under management, both on and off the balance sheet, remained “practically unchanged” in 2023, reaching 201.449 million at the end of the year. Customer resources for investments and savings in Spain increased by 9.1 billion to 56.6 billion. As of the end of the year, off-balance sheet resources reached 40 billion 561 million with an annual increase of 5.4 percent, while on-balance sheet resources decreased by 2 percent to 160 billion 888 million.
On their part, The bank’s total assets reached 235 billion 173 million eurosThis represents a 6.4% year-on-year decline, primarily driven by the 17,000 million return from TLTRO III.
balance quality
Balance sheet quality also improved in terms of liquidity and credit qualityIt became a bank whose ‘loan/deposit’ ratio increased to 94%, with a ‘balanced retail financing structure’ and whose ‘liquidity coverage ratio’ (LCR) reached 228% at the end of the year.
Non-performing assets decreased by 223 million to 6,748 million; Of these, 5,777 million are doubtful loans and 971 million are seized assets.
Default rate was 3.52%It was below 3.54% in the previous quarter, compared to 3.41% in the same period in 2022.
While the coverage of non-performing assets was 55.6%, the coverage of doubtful loans increased to 58.3% and the coverage of seized assets increased to 39.6%.
As a result, the bank’s credit cost was 43 basis points and the total risk cost was 55 basis points.
TBS
TBS closed the year with a record Individual net profit of 175 million pounds (205 million euros), up 70.9% year on yearThe positive contribution to the group was 195 million euros.
The organization increased its recurring margin by 3.9% to 361 million pounds (422.8 million euros) in the annual comparison, and its interest margin increased by 4.1% to 1,022 million pounds (1,196.8 million euros).
“It is worth noting that TSB has initiated an efficiency improvement plan to reduce costs and thereby focus on accelerating its core activity associated with the marketing of mortgages, in which it has historically specialized,” the bank said. said.