Sabadell Bank reported a net profit of 709 million euros for January through September, as disclosed to the National Securities Market Commission. This figure captures the bank’s core profitability for the nine-month period, with the figures excluding the results of TSB, the British subsidiary of the Catalan group.
Excluding TSB, the net attributable profit for the nine months stood at 616 million euros, more than doubling the 2021 figure of 288 million euros. This growth underscores a resilient performance across the group’s main banking activities and the ongoing benefits of strategic actions taken in recent years.
The bank’s income from its core banking business—defined as interest margin plus net commissions—reached 3,840 million euros, up 5.7% year on year. This line of business delivered an 8% return on material capital (ROTE), exceeding the target established in the group’s strategic plan.
The interest margin rose by 6.2% from the previous year, totaling 2,722 million euros. Net commissions increased by 4.5% to 1,118 million euros, while total operating costs climbed 15.2% year over year to 2,162 million euros by the close of the quarter. The bank highlighted a 3.8% year-on-year decline in recurring costs, driven by lower overheads and personnel savings, particularly following efficiency measures implemented in Spain.
Santander reported a quarterly performance that reflects steady momentum across its diversified geographic footprint, reinforcing the group’s status as one of the leading financial institutions in Europe by profitability and efficiency.
Santander posted 7,316 million, 25% more and highest profit in nine months
Mortgage and loan
The bank’s outstanding loan portfolio closed September at 156,675 million euros, excluding TSB, with investment growth of 2.9% year over year, driven by robust momentum across all geographies. Mortgage production in Spain reached 1.472 million euros, reflecting a 7% annual increase. New consumer loans also rose by 18% year over year to 439 million euros.
New production of cards and POS terminals marked a historic high for the business, with card billing up 17% year over year to 5,826 million euros and POS billing up 33% to 13,604 million euros in the same period.
customer resources
On-balance-sheet client funds ended September at 163,247 million euros, excluding TSB, with an annual growth rate of 3.4% (5.7% excluding TSB) driven by demand accounts and term deposits. Time deposit balances stood at 147,664 million euros, up 3.8% year over year when excluding TSB, while time deposits rose by 0.9% compared with the prior year. Off-balance-sheet client funds totaled 38,049 million euros, down 8.7% year over year and 2.0% quarter over quarter, mainly due to market volatility impacting mutual funds. Overall, total investment funds were 22,024 million euros, down 10% year over year amid market volatility.
The group’s total assets reached 260,407 million euros, excluding TSB, a year-over-year increase of 4.2% (3.2% excluding TSB), with a quarterly growth of 1.2% (1.3% excluding TSB).
Liquidity and capital
At the September close, the progressive CET1 ratio stood at 12.65%, up 4 basis points from the prior quarter, while the fully loaded CET1 ratio was 12.52%, also up 4 basis points in the quarter. The total phase-in capital ratio was 17.08% at quarter-end. In terms of liquidity management, the Liquidity Coverage Ratio (LCR) reached 217% at the group level. Non-performing assets totaled 7,039 million euros, of which 5,830 million were bad loans and 1,209 million were foreclosed assets.
Non-performing asset coverage with total provisions was 52.3%, while the coverage ratio for doubtful loans and total provisions stood at 55.1%. Foreclosed assets were covered at 38.9%. The NPL conversion rate at the end of September was 3.40%, compared with 3.59% in the same month of the previous year. The cost of credit risk decreased by 12 basis points to 39 basis points during the three months ending in September 2022 versus the prior year.
TSB contributed 93 million euros to the group’s results through September, up from 82 million in 2021, after reporting a net profit of 103 million euros in the period. The British subsidiary improved its recurring profit margin by 81% from the prior quarter, while its net interest income reached 718 million euros at the end of September, rising 5% year over year, aided by strong mortgage volume growth.