Banco Sabadell has secured a podium finish for the second consecutive year, driven by a stock market revaluation that pushes its capitalization close to 5,000 euros, with gains near 50.69% this year. The valuations reflect a market environment where rising interest rates have shifted sentiment and boosted profitability for several banks. Those gains are especially notable when considering that some banks with six-year negative price performance within the year are excluded because they did not complete the fiscal period with the required conditions. Contextual examples like Fluidra and Rovi illustrate how broader market cycles influence sector-wide performance.
Despite ranking second, Sabadell remains in the same elite tier as CaixaBank, which acquired Bankia last year and reached a capitalization of about 27.5 billion euros with a 51.53% revaluation. The leadership, including José Ignacio Goirigolzarri and Gonzalo Gortázar, has benefited from higher interest income and a stronger interest margin, contributing to sector-wide improvements in returns. These dynamics underscore how rate movements can lift banking fundamentals across the board.
Sabadell’s distinct position comes from maintaining a podium presence for a second year while navigating leadership transitions. Cesar González-Bueno took the helm in March of the previous year, steering the institution through a period of strategic recalibration after a failed merger attempt with BBVA. Analysts attribute much of Sabadell’s resilience to a favorable operating environment tied to rising rates, which supported asset quality and capital adequacy. Investors have welcomed the transformation that has stabilized capital ratios and improved solvency, efficiency, and profitability, as observed by market observers. A key factor cited is the enhancement of shareholder distributions, with the payout target raised to a minimum of 40%, a meaningful step up from 31.8% the prior year. This shift helped lift Sabadell’s market value from a trough near 2.0 billion to around 5.0 billion euros.
Another important consideration was Sabadell’s decision to retain its British subsidiary, TSB. The group recently reached an agreement with the UK regulator that addressed technology-related issues from 2018, resulting in a charge of 55.75 million. TSB has emerged as a valuable asset for the group, contributing positively for seven consecutive quarters and generating earnings of 103 million pounds (approximately 117.95 million euros) with a return on tangible equity around 7.8%. This performance contributed positively to Sabadell’s consolidated accounts in September, recording a net contribution of 93 million euros, versus 82 million euros in the same period of the previous year.
Sabadell’s recovery has gained momentum after the strategic separation from BBVA at the end of 2020. From January through September, the bank reported earnings of 709 million euros, up about 91.9% from the prior year and roughly 33% higher than the full-year result for 2021 (530 million). In fact, the profit achieved in the first three quarters nearly matches the entire 2019 result (768 million), highlighting a strong rebound from pandemic-era lows. These figures illustrate the bank’s progress toward improved profitability and sustained growth, aided by disciplined balance-sheet management and a more favorable rate environment. Overall, Sabadell’s trajectory demonstrates how strategic leadership, capital discipline, and a resilient business model can translate market optimism into tangible value for shareholders.