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Sabadell Bank Reports Record Profits ⁤After BBVA Takeover Failure

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.