The president of Sabadell, Josep Oliú, spoke this Thursday about the bank’s balance sheet, highlighting its strength and balance in the face of market turbulence. He noted the impact of events such as the collapse of Silicon Valley Bank and the difficulties at Credit Suisse, while criticizing a new bank tax that he described as unfair and discriminatory toward the sector.
He delivered these remarks during the annual general meeting held at the Alicante Provincial Assembly Auditorium. A central issue on the agenda was Oliú’s re-election as director, ensuring his continuation as non‑executive chairman for another four years, a move that would maintain his leadership role in guiding Sabadell through evolving market conditions.
Oliú described the past year as very positive, citing a solid gain of 859 million and noting a 62% jump in profits despite a war-driven recession in Ukraine that raised inflation and cooled growth. This climate has prompted rapid interest rate hikes by central banks worldwide, contributing to instability in financial markets and echoing the volatility seen with SVB and Credit Suisse. Nevertheless, the executive stressed that Sabadell’s robust balance sheet and earnings outlook place the bank in a strong position to weather potential shocks.
As emphasized earlier in a Wednesday press briefing, Oliú underscored the need to minimize any spillover from global turbulence into Sabadell. He asserted that the group’s strength and prudent risk management keep it well positioned amid market unrest, reinforcing confidence in its financial health and strategic direction.
Sabadell’s business in Alicante: approximately 5,600 million in new loans per year
Oliú noted that the bank remains focused on sustainable profitability as monetary policy normalizes, with rates that cover the cost of capital and align with current market levels. This outlook supports a constructive trajectory for 2023, bolstered by a sound solvency and risk balance that reinforces Sabadell’s readiness to confront future challenges.
bank tax
The leader also addressed the government’s plan to impose a two-year tax on banks and energy companies. He characterized the tax as unfair and discriminatory toward savers who invest in bank shares, compared with investors in other sectors impacted by macroeconomic shifts. Oliú reminded listeners that over the past decade bank shareholders have endured the consequences of an extraordinary monetary policy, which left returns insufficient to fully recoup invested capital, and he referenced Sabadell’s decision to pursue legal remedies to contest the measure.
To bolster his position, Oliú recalled the sector’s role in facilitating liquidity during the COVID crisis and its ongoing contribution to the distribution of public loan programs that supported households and businesses during that difficult period.
Sabadell plans to charge less commission from clients after rate increase
The discussion also touched the bank’s policy on commissions, with a focus on adjusting costs in light of evolving interest rates. This is framed as part of Sabadell’s broader strategy to offer fair, transparent pricing while maintaining service quality for customers across its markets.
re-election
In his opening remarks, Oliú reaffirmed his intention to continue as manager through a four-year term as non-executive president. He spoke about the long-term commitment to Sabadell, mentioning the bank’s growth arc, its deep regional roots, and its development into a cornerstone of Spanish banking with an international footprint. He expressed a belief that the coming years would form the foundation for further consolidation of the institution’s assets and capabilities, enabling ongoing support for customers and shareholders alike.
Oliú reiterated his hope to contribute as before with his knowledge and leadership while serving the interests of clients and investors. Sabadell’s board also announced a supplementary dividend of two cents per share, in addition to the two-cent interim payout distributed in December 2022. A share buyback program will return up to 204 million to shareholders, representing half of the bank’s profit for the period.