Banco De Sabadell Sa · BME:SAB

Banco De Sabadell Sa — Banco De Sabadell Sa Ord — Q3 2025 Earnings Presentation

45 slides from Banco De Sabadell Sa's earnings presentation, Nov 13, 2025

  1. Slide 1: 3Q25 Results

    3Q25 Results November 13, 2025

  2. Slide 2: Index

    Index 1 A successful journey with ongoing momentum 2 3Q25 highlights 3 Financial results 4 Balance sheet 5 Closing remarks

  3. Slide 3: A successful journey with ongoing momentum

    1 A successful journey with ongoing momentum

  4. Slide 4: Sabadell is on a journey which has not reached its full potential yet

    Sabadell is on a journey which has not reached its full potential yet Jul ’25 Aug ’25 Strategic TSB sale Plan approval Execution: growth and Transformation and financial turnaround shareholder remuneration Recurrent RoTE 16.0% 14.0% 14.5% 11.5% 7.8% 5.1% 0.0% 2020 2021 2022 2023 2024 2025E 2027E May

  5. Slide 5: Four key elements underpin Sabadell's investment case

    Four key elements underpin Sabadell’s investment case • Domestic bank in Spain, one of the fastest growing economies Spain in Europe • Orientation to growth while preserving asset quality. Current size leaves headroom for prudent market-share gains Growth • Transformation well underway, with the ful

  6. Slide 6: A plan focused on growth, profitability and shareholder remuneration

    A plan focused on growth, profitability and shareholder remuneration Net interest income Fees & Commissions ~€3.9bn Mid-Single Digit 2027e 16% 2024-27e CAGR RoTE Total costs 13% Total Cost of Risk CET1 FL ~3% ~40bps 2024-27e CAGR 2027e Cumulative shareholder remuneration of €6.3bn in 2025-27e 19 6

  7. Slide 7: Raising shareholder remuneration further to distribute a total of €6.45bn in 2025-27

    Raising shareholder remuneration further to distribute a total of €6.45bn in 2025-27 Shareholder remuneration 2025-27e1 Dividend policy 2025-2027e €M Dividend payout Improved in September 60 % 2 interim + 2,500 1 final dividend 6,450 August After AGM €6.45 bn 2 December 3,950 2025-27e Total cumulati

  8. Slide 8: 3Q25 Highlights

    Sabadell 3Q25 Highlights

  9. Slide 9: 3Q25 results … on track to meet 2025 guidance

    3Q25 results … Commercial activity Asset quality keeps accelerating 14.1% improving Performing loans: +8.1% YoY Recurrent Total cost of risk: 37bps (-18bps YoY) RoTE1 Customer funds: +7.8% YoY 15.0% RoTE reported Core revenues aligned with guidance 13.7% 2025 shareholder distribution improved to €1,

  10. Slide 10: Loan volumes keep improving in Spain and off-balance sheet products expand

    Loan volumes keep improving in Spain and off-balance sheet products expand Performing loans across geographies Total customer funds €M €M Sep-25 QoQ YoY Sep-25 QoQ YoY Spain 104,264 +0.9% +7.6% On-balance sheet 127,660 +0.2% +5.0% ex-TSB Other international +3.2% +11.0% 15,839 Off-balance sheet 51,6

  11. Slide 11: Current levels of new lending allow for growth of the loan book

    Current levels of new lending allow for growth of the loan book Mortgages Consumer loans €M, quarterly new lending in Spain €M, quarterly new lending in Spain 1,618 1,817 1,600 -1 % 662 750 768 +16 % Var. YoY Var. YoY +26% +19% -12 % 9M25/9M24 +2 % 9M25/9M24 Var. QoQ Var. QoQ 3Q24 2Q25 3Q25 3Q24 2Q2

  12. Slide 12: Payment services remain strong. Savings & investment growth driven by off-balance sheet products

    Payment services remain strong. Savings & investment growth driven by off-balance sheet products Cards Retailer payment services (PoS) Quarterly turnover in Spain (in €M) Quarterly turnover in Spain (in €M) 6,552 6,662 6,853 +5 % 15,909 14,976 15,664 -2 % Var. YoY Var. YoY +6% +2% +3 % 9M25/9M24 +5

  13. Slide 13: Positive loan growth across segments and geographies in the year

    Positive loan growth across segments and geographies in the year Performing loans by segment, ex-TSB €bn Sep-25 QoQ YoY Sep-25 QoQ YoY Mexico +6.7% +10.8% Mortgages 39.3 +1.2% +5.6% 4.6 Constant FX +5.3% +12.7% Consumer loans 5.2 +4.5% +19.0% Miami +2.4% +7.5% 6.7 Constant FX +2.6% +12.8% SMEs & Cor

  14. Slide 14: Growing with lower risk to deliver healthy capital generation

    Growing with lower risk to deliver healthy capital generation Strategic shift in new lending Growth strategy in lower risk segments is delivering: Probability Loan growth of Default ex-TSB YoY Reduction (9M25 vs 2023)1 Lower loan yield Mortgages +5.6% >50% Lower Cost of Risk Consumer +19.0% >60% = l

  15. Slide 15: TSB will continue to contribute to Group results until the sale is completed

    TSB will continue to contribute to Group results until the sale is completed TSB performing loans and customer deposits TSB standalone P&L and its contribution to Sabadell £bn £M 3Q25 3Q25/2Q25 9M25 9M25/9M24 Sep-25 QoQ YoY NII 263 +2.2% 781 +7.0% Fees & commissions 20 +2.1% 59 -15.9% Performing loa

  16. Slide 16: Group RoTE in line with expectations, increasing lending volumes with a strong capital generation

    Group RoTE in line with expectations, increasing lending volumes with a strong capital generation P&L Ex-TSB 3Q25 (€M) 3Q25/2Q25 9M25 (€M) 9M25/9M24 NII 899 -0.8% 2,709 -6.2% 14.1% Recurrent Fees 314 -4.0% 962 +3.7% RoTE1 15.0% RoTE reported Total costs -561 +4.7% -1,646 +0.5% Provisions -126 +10.4%

  17. Slide 17: Financial results

    Sabadell Financial results

  18. Slide 18: Performance aligned with YE targets

    Performance aligned with YE targets Sabadell ex-TSB Sabadell Group €M 3Q25 9M25 3Q25/2Q25 9M25/9M24 3Q25 9M25 3Q25/2Q25 9M25/9M24 Net interest income 899 2,709 -0.8% -6.2% 1,203 3,628 -0.5% -3.2% Fees & commissions 314 962 -4.0% 3.7% 337 1,032 -3.7% 2.1% Core banking revenue 1,213 3,672 -1.6% -3.8%

  19. Slide 19: Going forward, NII to be supported mainly by loan growth

    Going forward, NII to be supported mainly by loan growth Group NII Group NII QoQ evolution €M Group Ex-TSB €M 1,203 1,253 1,209 1,203 3Q25/2Q25 3Q25/2Q25 303 906 +14 +3 899 296 303 303 - 0.5 % - 0.8 % -5 -19 Customer margin -24 Loan volumes 957 906 9M25/9M24 9M25/9M24 +8 899 Deposit volumes - 3.2 %

  20. Slide 20: Fees aligned with guidance, despite negative seasonality in the quarter

    Fees aligned with guidance, despite negative seasonality in the quarter Group fees & commissions Group Ex-TSB €M 3Q25/2Q25 3Q25/2Q25 - 3.7 % - 4.0 % The usual negative seasonality in 336 350 337 28 24 24 the quarter driven by credit and 69 71 65 contingent risk fees as well as 9M25/9M24 9M25/9M24 se

  21. Slide 21: Total costs remained contained

    Total costs remained contained Group costs €M Group Ex-TSB 792 3Q25/2Q25 3Q25/2Q25 In the quarter, costs excluding TSB 14 772 + 2.7 % + 4.7 % increased due to higher general 752 expenses. At the TSB level, costs 126 118 121 improved, supported by currency 175 188 182 depreciation. 9M25/9M241 9M25/9M

  22. Slide 22: CoR evolution in line with year-end target

    CoR evolution in line with year-end target Group credit provisions Group Ex-TSB Group total provisions 3Q25 breakdown €M €M 3Q25/2Q25 3Q25/2Q25 + 57.1 % + 37.4 % 16 143 34 10 121 18 104 88 66 16 9M25/9M24 9M25/9M24 2 -5 103 - 37.6 % - 41.2 % 88 64 3Q24 2Q25 3Q25 Credit Foreclosed NPA Other TSB Total

  23. Slide 23: Balance sheet

    Sabadell Balance sheet

  24. Slide 24: NPL and coverage ratios continue to improve

    NPL and coverage ratios continue to improve NPLs and coverage ratios Exposure by stage and coverage ratio €M, % €M Stage 2 Stage 3 Ex-TSB Total provisions / Sept-25 YoY Sept-25 YoY 69% 69% stage 3 Exposure (€M) 8,997 -2,983 4,267 -1,017 64% Group % of total loan book 5.2% -194bps 2.5% -69bps 64% Tot

  25. Slide 25: Total NPAs kept up double digit reduction YoY

    Total NPAs kept up double digit reduction YoY Group foreclosed assets NPAs Group key ratios €M €M Sep-24 Jun-25 Sep-25 20% 93% Gross NPA ratio1 3.6% 2.9% 2.9% Stock sold Finished 64% 64% Ex-TSB 60% L12M +11% properties Coverage Net NPA ratio 1.5% 1.2% 1.1% Average ratio premium 60% 60% Group Net NPA

  26. Slide 26: Liquidity buffers remain strong amid improving credit ratings

    Liquidity buffers remain strong amid improving credit ratings Liquidity metrics Total liquid assets Long-term ratings €bn Quarterly changes highlighted in blue Group Ex-TSB Sept-25 96% 94% 62 16 61 59 b Long-term credit rating Outlook Loan-to-deposit Loan-to-deposit 18 19 9 7 Standard 8 & Poors A- S

  27. Slide 27: Ample MREL management buffers

    Ample MREL management buffers MREL position, Sabadell Group % Risk Weighted Assets (RWAs phase-in), % Leverage Ratio Exposure (LRE) YTD new issuances Maturity Instrument Date Size (€M) Coupon (Years) Covered bonds (TSB) Feb 18th 600 5 2.70% 25.31% 29.07% 6.39% 9.50% Senior non preferred Feb 18 th 50

  28. Slide 28: Generating capital while growing loan book at mid-single digits

    Generating capital while growing loan book at mid-single digits Evolution of capital ratios MDA buffer Accrued and non-paid dividends + 486bps excess capital As of September 2025, proforma of TSB sale 49bps of capital generation pre dividend accrual 19.42% €3.7bn €3.7bn 19.29% €2.65bn 18.84% +60bps

  29. Slide 29: €3.6bn shareholder remuneration to be distributed in less than 6 months time

    €3.6bn shareholder remuneration to be distributed in less than 6 months time In less than 6 months 2025 2025 2026 29 August 29 December Second Quarter Recurrent €1,450M shareholder 1st interim dividend 2nd interim dividend Final dividend + Excess capital1 The nature of the payment will be 2025 share

  30. Slide 30: Shareholder value creation

    Shareholder value creation Shareholder value creation1 Impact of TSB sale on Sabadell’s valuation (€bn) +17% <9x2 17.0 2027e P/E >10x3 0.27 P/E peers 2.5 average 14.5 2.42 2.31 Sep-24 Sep-25 Current Extraordinary Market cap Market cap dividend related excluding TSB to TSB sale TBV per share Dividend

  31. Slide 31: Closing remarks

    Sabadell 5 Closing remarks

  32. Slide 32: On track to meet 2025 guidance

    On track to meet 2025 guidance Ex-TSB P&L targets 9M25 Guidance 14.5% On track 2025 RoTE Net Interest Income €2.7bn €3.6bn On track Guidance 14.1% RoTE1 as of Fees & Commissions (YoY) +3.7% MSD On track Sep-25 Total costs €1,450M (YoY) +0.5% LSD On track 2025 Total shareholder Total Cost of Risk 37b

  33. Slide 33: Appendix

    Appendix 1 NIM and customer margin 2 Debt maturities 3 ALCO portfolio 4 ESG milestones 5 TSB asset quality, solvency and liquidity position 6 RWAs breakdown 7 MDA buffer 8 Group’s accounting income statement

  34. Slide 34: NIM and customer margin

    Appendix 1 NIM and customer margin Sabadell Group Sabadell Ex-TSB TSB %, in euros %, in euros %, in euros 3.11% 3.16% 3.05% 2.98% 2.92% 3.07% 3.30% 3.31% 3.10% 3.00% 2.91% 2.91% 2.86% 2.86% 3.18% 2.71% 2.06% 2.06% 2.02% 2.58% 1.97% 1.93% 2.01% 1.98% 1.89% 1.85% 1.79% 2.00% 1.91% 2.29% 2.26% 2.28% 2.

  35. Slide 35: Debt maturities

    Appendix 2 Debt maturities 4,788 4,910 3,666 2,763 3,100 1,457 3 2025 2026 2027 2028 2029 2030 >2030 Covered bonds 0 1,390 2,245 2,416 2,022 1,850 1,700 Senior Preferred Debt 3 0 500 750 1,265 750 0 Senior Non-Preferred Debt 0 67 18 500 1,500 500 1,695 Subordinated debt 0 0 0 0 0 0 1,515 Total 3 1,4

  36. Slide 36: Debt maturities

    Appendix 2 Debt maturities Main debt maturities and redemptions Main debt maturities or calls in next 12 in last 6 months months Instrument Date Nominal amount Instrument Date Nominal amount Senior non-preferred bonds 24/03/2025 (call) €750M Tier 22 15/01/2026 (call) €500M Senior non-preferred bonds

  37. Slide 37: ALCO portfolio

    Appendix 3 ALCO portfolio Evolution of fixed income portfolio Composition of fixed income portfolio Sabadell Group. €bn Sabadell Group. €bn. Sep-25. 13.3% 14.1% 12.2% 33.7 34.4 18.8 4.4 1.8 2.0 5.3 2.0 30.0 6.4 6.3 6.4 Spain Italy UK Other EU Government 27.4 28.0 Other non-EU Government & agencies C

  38. Slide 38: Main milestones in Sustainability

    Appendix 4 Main milestones in Sustainability 2021-25 Sustainable finance solutions €bn in cumulative terms since 2021 Corporate 86 /100 AuM invested in Sustainability Score as of sustainable 84% Assessment by Sep-25 funds1 Target achieved ahead of plan Women in 33% 97.9% management team 34.7% 2025 E

  39. Slide 39: TSB asset quality, solvency and liquidity position

    Appendix 5 TSB asset quality, solvency and liquidity position Asset quality TSB core mortgage portfolio overview % Sep-24 Jun-25 Sep-25 9% 2% Mortgages NPL ratio 1.5% 1.4% 1.5% 5% 84% > 90 % Coverage ratio 37% 33% 32% 9% Total loan 1 (YTD) book Cost of risk 0.13% 0.10% 0.12% Liquidity £33.4bn Reside

  40. Slide 40: RWAs breakdown

    Appendix 6 RWAs breakdown Sep-25 RWAs By type: By geography: €79,989M Credit risk Spain €67.6bn €62.8bn Market risk €0.5bn UK €13.0bn Operational risk €11.8bn Mexico Others €4.2bn €0.1bn 40

  41. Slide 41: MDA buffer

    Appendix 7 MDA buffer Leverage MDA buffer ratio phase-in Group capital requirements Group capital position (phase-in) 486bps 5.6% Pillar 1 CET1 4.50% Pillar 2 CET1 Requirement (P2R) 1.27%1 • MDA stands at 486bps, above 8.94% requirement Capital Conservation Buffer 2.50% • 0.5% countercyclical buffer

  42. Slide 42: Group's accounting income statement

    Appendix 8 Group’s accounting income statement €M 9M24 9M25 9M25/9M24 Net interest income 2,813 2,656 -5.6% Fees & commissions 928 962 3.7% Core banking revenue 3,741 3,619 -3.3% Trading income & forex 31 -3 n.m. Other income & expenses -75 82 n.m. Gross operating income 3,697 3,698 0.0% Total costs

  43. Slide 43: Glossary

    Glossary AuM Asset under Management NII Net Interest Income CET1 FL Common Equity Tier 1 Fully Loaded NIM Net Interest Margin CoR Cost of Risk NPA Non-Performing Asset CRR2 Capital Requirements Regulation 2 NPL Non-Performing Loan FV OCI Fair Value through Other Comprehensive Income NSFR Net Stable

  44. Slide 44: Disclaimer

    Disclaimer This presentation (the "Presentation") has been prepared and is issued by, Banco Sabadell Group past and future reports and documents, including quarterly financial Report and is the sole responsibility of, Banco de Sabadell, S.A. ("Banco Sabadell" those filed with the Spanish Securities

  45. Slide 45: ©Sabadell

    ©Sabadell

Banco De Sabadell Sa Ord — Q3 2025 Earnings Presentation on 6ix