Banco Sabadell Profit Soars After Rejecting BBVA Bid
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Sabadell Bank Reports Record Profits After BBVA Takeover Failure
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What Happened: BBVA’s Failed Takeover and Sabadell’s Response
Following the unsuccessful unfriendly takeover bid by BBVA, Sabadell Bank has announced a record profit of €1.39 billion for the first nine months of 2025.This represents a 7.3% increase year-on-year, showcasing the bank’s robust performance.
The bank attributes this success to strong commercial momentum, including an 8.1% year-on-year increase in credit volumes (excluding TSB) and a 15.4% rise in customer funds (off-balance sheet, excluding TSB), alongside a 5% increase in on-balance sheet funds. Furthermore, a 29.3% reduction in provisions for loan losses (excluding TSB) due to an improved credit profile contributed to the positive results.
The TSB Sale and its Impact
Despite the sale of its British subsidiary, TSB, to Banco Santander for over €3 billion this past summer - funds largely earmarked for a €2.5 billion dividend payout to shareholders - Sabadell continues to include TSB’s performance in its accounts. This is because the transaction is scheduled to finalize in the first quarter of 2026, pending regulatory approvals from Santander.
TSB reported a net profit of £198 million (approximately €242 million) for the first three quarters of 2025, a 43.9% year-on-year increase driven by cost control measures and favorable rate hedging. This contribution from TSB has further bolstered Sabadell’s overall financial performance.
Dividend Reaffirmation and Future Outlook
The dividend was a key factor in Sabadell’s defense against the BBVA takeover attempt, and now, with the bid unsuccessful, the bank is reconfirming its dividend distribution guidance.Sabadell generates high levels of capital organically and consistently, signaling a positive outlook for shareholder returns.