Sabadell Bank reported a standout earnings performance, showing a net attributable profit of 1,028 million euros for the period. This headline result is described as the strongest in the bank’s history and marks a substantial year-over-year rise, up 44.9% from the same period a year earlier. The release positions Sabadell as a leading performer in a competitive European banking market, illustrating its ability to translate favorable market conditions into durable value for shareholders and reinforcing confidence in its ongoing growth path.
The surge in profitability is largely driven by robust expansion in interest margins. The improvement is helped by higher policy rates from central banks, which widen the gap between borrowing costs and lending yields. Sabadell noted that the recurring margin—defined as the sum of net interest margin and commissions minus operating costs—advanced by 38.8% on an annual basis, reaching 2,328 million euros. This metric highlights core, repeatable earnings that business lines can consistently contribute, offering a buffer against fluctuations from non-recurring income sources.
Across the entire banking franchise, revenue, defined as the combination of interest margin and net commissions, climbed to 4,559 million euros, up 18.7% from the first nine months of the prior year. The interest margin alone rose 29.0%, totaling 3,512 million euros. The strength in core revenue streams reflects a favorable rate environment, steady loan origination activity, and disciplined pricing and risk management across Sabadell’s client base.
On the downside, net commissions declined by 6.3%, slipping to 1,047 million euros in the first nine months. The fall in fee income was offset by the broader upturn in core margins and interest earnings, helping sustain overall profitability. Operating costs rose modestly by 3.2% to 2,231 million euros as the bank continued investing in technology, enhanced risk controls, and client-service capabilities that support long-term growth and regulatory compliance.
Looking ahead, the group announced an interim dividend of 0.03 euro gross per share, linked to the 2023 performance. The payout is scheduled to be disbursed in cash on December 29, delivering a tangible return to shareholders amid ongoing market adjustments. This dividend decision aligns with Sabadell’s strategy of delivering value to investors while maintaining a prudent approach to capital management and liquidity in a dynamic rate environment.