Banco de Sabadell hikes shareholder distribution target, Q4 net profits surge
By Iain Gilbert
Date: Friday 07 Feb 2025
(Sharecast News) - Spanish financial services giant Banco de Sabadell hiked its shareholder distribution target on Friday as it looks to fend off a takeover attempt by rival BBVA.
Sabadell announced a shareholder payout policy of €3.3bn, based on its FY24 and FY25 results, up from its previous target of €2.9bn. Part of the distribution included a €1.0bn share buyback against FY24 earnings and the distribution of €1.1bn in cash as part of its 60% payout, which was at the upper end of its policy.
At the same time, Sabadell revealed Q4 net profits had surged 75% year-on-year to €532.0m, beating expectations of €436.0m, while net profits rose by 37% to €1.83bn, ahead of the €1.73bn predicted by analysts.
Sabadell's return on tangible equity ratio improved from 13.2% in September to 14.9% at the end of FY24, thanks to higher earnings and the positive impact of €109.0m. Excluding one-offs, Sabadell's recurrent ROTE rose to 14% and it said profitability should stay around 14% for 2025.
Chairman Joseph Oliu said: " We are starting the new year with confidence and ambition, firm in our conviction that Banco Sabadell's standalone strategy will continue to generate recurring and sustainable value for shareholders, customers, our colleagues and society as a whole."
As of 1000 GMT, Sabadell shares were down 0.91% at €2.39 each.
Reporting by Iain Gilbert at Sharecast.com
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