Banco De Sabadell Sa · BME:SAB

Banco De Sabadell Sa — Banco De Sabadell Sa Ord — Q2 2026 Earnings Presentation

45 slides from Banco De Sabadell Sa's earnings presentation, Jul 24, 2026

  1. Slide 1: Banco Sabadell Q2 2026 Results

    Banco Sabadell Q2 · 2026 Results July 24, 2026 1

  2. Slide 2: Index

    Index 01. Opening remarks p.3 02. 2Q26 highlights p.6 03. Financial results p.14 04. Balance sheet p. 23 05. Closing remarks p. 27 2

  3. Slide 3: Opening remarks

    Opening remarks 9S

  4. Slide 4: A simpler, profitable and growth-oriented Spanish bank delivering attractive shareholder returns

    A simpler, profitable and growth-oriented Spanish bank delivering attractive shareholder returns We are more focused in Spain, while keeping the proper scale to move faster Our modern IT platform and infrastructure enable the next phase of transformation We have successfully regained commercial mome

  5. Slide 5: We have attractive prospects and clear opportunities ahead of us

    We have attractive prospects and clear opportunities ahead of us Full commitment to delivering on 14.5% RoTE 16% RoTE our guidance in 2026 in 2027 Leveraging Increasing Clear opportunities on our scale Leveraging our focus on to unlock additional to become on AI and high-value value for the bank tec

  6. Slide 6: 2Q26 highlights

    2Q26 highlights 9S

  7. Slide 7: The start of a sustained recovery of revenue

    The start of a sustained recovery of revenue Performing loans Customer funds Commercial activity keeps accelerating +3.0% QoQ +1.8% QoQ NII Fees Core revenues grew as anticipated +3.4 QoQ % +4.0 QoQ % One-offs Cost savings Early retirement plan fully executed -€37M -€92M €20M in 2H26 in 2Q26 in 1H26

  8. Slide 8: 2Q26 P&L: Core revenues return to growth

    2Q26 P&L: Core revenues return to growth P&L 2Q26 (€M) 1H26 (€M) 2Q26/1Q26 1H26/1H25 NII 902 1,774 +3.4% -2.0% Fees 328 643 +4.0% -0.9% 13.6 % Total recurrent costs -570 -1,139 +0.3% +4.9% Recurrent RoTE3 Provisions -152 -285 +14.4% +18.3% Recurrent net profit 3591 6912 +8.4% -14.1% 14.9 % Reported

  9. Slide 9: Performing loans growth accelerates in the quarter…

    Performing loans growth accelerates in the quarter… Performing loans by segment €bn Jun-26 QoQ YoY Jun-26 QoQ YoY Mexico +2.7% +25.9% Mortgages 40.2 +0.9% +3.4% Constant FX 5.4 -0.3% +17.4% Consumer loans 5.6 +2.7% +12.7% Miami +3.1% +17.8% Constant FX 7.7 +2.2% +14.5% SMEs & Corporates 45.7 +2.1% +

  10. Slide 10: … driven by positive new lending dynamics in the quarter

    … driven by positive new lending dynamics in the quarter Mortgages Consumer loans SMEs & Corporates SMEs & Corporates €M, quarterly new €M, quarterly new Loans and credit facilities Working capital lending in Spain lending in Spain €M, quarterly new €M, quarterly new lending in Spain lending in Spai

  11. Slide 11: Customer funds increase while containing cost of deposits

    Customer funds increase while containing cost of deposits Total customer funds €M On-balance sheet funds Jun-26 QoQ YoY breakdown €bn On-balance sheet 133,380 +0.9% +4.7% Of which: Spain 126,116 +0.9% +4.8% 85.6 Non-remunerated 47.7 Remunerated 133.4 Jun 26 Off-balance sheet 54,726 +4.2% +11.0% Cost

  12. Slide 12: Visibility on 2026 results underpins 2027 RoTE guidance

    Visibility on 2026 results underpins 2027 RoTE guidance What we said Where we are today €M Performing loans to grow +5.5% 120 120 122 125 Upward trend by mid-single digits in 2026 YoY 119 2Q25 3Q25 4Q25 1Q26 2Q26 €M On-balance sheet funds +4.7% 132 132 134 Upward trend growing 3-4% in 2026 YoY 127 1

  13. Slide 13: Driving sustainable shareholder value creation…

    Driving sustainable shareholder value creation… Number of outstanding shares1 Shareholder value creation (in M) (in €) # shares CAGR -15% reduction +12% 2022-26 5,602 5,403 5,361 4,998 4,743 New SBB 2022 2023 2024 2025 Jul-26 1 Excluding treasury shares … combining cash dividends and share buybacks

  14. Slide 14: Financial results

    Financial results 14

  15. Slide 15: 1H26 Net income positively impacted by €201M of one-offs

    1H26 Net income positively impacted by €201M of one-offs Sabadell one-off items €M 2Q26 1H26 Concept P&L line impacted Gross Net Gross Net Gain on sale of assets and 331 316 331 316 other results Sale of TSB Trading income & forex 9 6 9 6 FX hedge on the proceeds from the sale Trading income & forex

  16. Slide 16: Profitability will improve in 2H26 to reach 14.5% at year-end

    Profitability will improve in 2H26 to reach 14.5% at year-end €M 2Q26 1H26 2Q26/1Q26 1H26/1H25 Net interest income 902 1,774 +3.4% -2.0% Fees & commissions 328 643 +4.0% -0.9% Core banking revenue 1,230 2,417 +3.6% -1.7% Trading income & forex 16 17 n.m. +5.3% Other income & expenses 22 28 n.m. -52.

  17. Slide 17: 2Q26 confirms the inflection point in Net Interest Income

    2Q26 confirms the inflection point in Net Interest Income Quarterly NII NII QoQ evolution €M €M +3.4% +3 +11 +16 2Q26/1Q26 902 906 872 902 -2.0% 872 1H26/1H25 2Q25 1Q26 2Q26 1Q26 Customer NII Day count ALCO, liquidity, 2Q26 wholesale funding and others 2Q25 1Q26 2Q26 • Customer NII underpinned by la

  18. Slide 18: NII will increase by low-single digits quarterly

    NII will increase by low-single digits quarterly NII expected quarterly evolution €M Quarterly NII is expected to keep increasing, with mid-single-digit growth in 4Q26 compared to 4Q25, 4Q26 vs 4Q25 driven by: Mid-single digit growth • ECB expected to raise deposit facility rate to 2.5%. Longer term

  19. Slide 19: Commissions grew by +4% in the quarter supported by higher service fees

    Commissions grew by +4% in the quarter supported by higher service fees Fees & commissions €M Positive QoQ variation, driven mainly by service and credit risk fees : 327 328 315 +4.0% • Service fees growth supported by higher payment business, Corporate and Investment Banking activity and seasonalit

  20. Slide 20: Recurrent total costs flattish in the quarter

    Recurrent total costs flattish in the quarter Total costs €M In the quarter, total recurrent costs remained stable 624 603 55 33 535 100 102 +0.3% • Staff and administrative expenses were broadly flat, driven by cost containment 89 2Q26/1Q251 • Recognition of €55M in 1Q26 and €33M in 2Q26 of non-rec

  21. Slide 21: Jaws expected to widen further going forward

    Jaws expected to widen further going forward Quarterly core banking results €M Core banking results to improve from 1Q26 onwards 2025 2026 • NII and fees expected to keep increasing: • NII growth above 1% YoY • Fee growth in the mid-single digits YoY • Recurrent costs are expected to increase slight

  22. Slide 22: Asset quality continues to support a contained cost of risk

    Asset quality continues to support a contained cost of risk Credit provisions Total provisions 2Q26 breakdown €M €M 15 +21.6% 24 2Q26/1Q26 -2 152 +72.5% 115 115 1H26/1H25 94 66 2Q25 1Q26 2Q26 Credit Foreclosed NPA Other Total provisions asset management provisions provisions for NPLs provisions cost

  23. Slide 23: Balance sheet

    Balance sheet 23

  24. Slide 24: Positive trend in asset quality underpinned by NPL reduction

    Positive trend in asset quality underpinned by NPL reduction NPL and coverage ratios €M 71% 69% 69% 2.81% 3,674 2.55% 3,411 3,390 2.47% Jun-25 Jun-25 Mar-26 Mar-26 Jun-26 Jun-26 Jun-25 Mar-26 Jun-26 Jun-25 Mar-26 Jun-26 NPLs NPL ratio Total provisions /stage 3 Exposure and coverage ratio by stage Ke

  25. Slide 25: A sound liquidity position and credit ratings

    A sound liquidity position and credit ratings Liquidity metrics Long-term ratings €M Jun-26 2026 funding plan Long-term Outlook credit rating • AT1: excess AT1 buffer expected to 93% Loan-to-deposit Standard & be normalised in 2027 A- Positive Poor’s • Tier 2: current shortfall offset by the 131% NS

  26. Slide 26: 20bps of capital generation while accruing a 60% dividend payout

    20bps of capital generation while accruing a 60% dividend payout and growing the loan book by +3% in the quarter Evolution of CET1 fully-loaded 46bps of capital generation pre dividend accrual +61bps +3bps -18bps -26bps 60% pay-out 13.18% 12.91% 13.11% +20bps Mar-26 Mar-26 Organic CET1 Fair value RW

  27. Slide 27: Closing remarks

    Closing remarks 27

  28. Slide 28: Delivering on all key commitments to achieve our guidance

    Delivering on all key commitments to achieve our guidance 2026 Guidance Delivering exactly what we set out for the year >1% YoY ✓ Turning point already reached both in NII and fees On track Core ✓ Loans and deposits on track to meet the target (NII) revenues ✓ Customer margin expansion starts now Mi

  29. Slide 29: Appendix

    Appendix 01. NIM and customer margin 02. Debt maturities 03. MREL position 04. ALCO portfolio 05. NPA evolution 06. ESG 2030 goals 07. RWAs breakdown 08. MDA buffer 09. One-offs 10. Artificial intelligence 29

  30. Slide 30: Loan yield, cost of customer funds, customer margin and NIM

    Appendix 1 Loan yield, cost of customer funds, customer margin and NIM Loan yield & Cost of customer funds Customer margin and NIM In % In % 3.88% 3.68% 3.64% 3.63% 3.62% 3.00% 2.91% 2.88% 2.85% 2.84% 0.88% 0.77% 0.76% 0.78% 0.78% 1.85% 1.83% 1.79% 1.78% 1.79% 2Q25 3Q25 4Q25 1Q26 2Q26 2Q25 3Q25 4Q25

  31. Slide 31: Next debt maturities

    Appendix 2 Next debt maturities 3,923 4,210 2,235 2,500 1,457 1,118 700 2026 2027 2028 2029 2030 2031 >2031 Covered bonds 1,390 1,100 985 950 1,250 200 2,000 Senior Preferred Debt 0 0 750 1,473 750 0 0 Senior Non-Preferred Debt 67 18 500 1,500 500 500 1,195 Subordinated debt 0 0 0 0 0 0 1,015 1,457

  32. Slide 32: Debt maturities

    Appendix 2 Debt maturities Main debt maturities and redemptions Main debt maturities or calls in last 6 months in next 12 months Instrument Date Nominal amount Instrument Date Nominal amount Tier 2 15/01/2026 (called) €500M Covered bonds 28/08/2026 €1,000M Senior preferred 11/03/2026 (called) €500M

  33. Slide 33: MREL position

    Appendix 3 MREL position MREL position % Risk Weighted Assets (RWAs phase-in), % Leverage Ratio Exposure (LRE) 25.38% 28.03% 6.26% 10.20% 2026 requirement1 3.97% 2026 requirement1 1.44% 5.94% 2.16% 1.78% 8.75% 0.65% 24.06% Subordinated Subordinated 3.18% 1.16% Subordinated MREL position Subordinated

  34. Slide 34: ALCO portfolio

    Appendix 4 ALCO portfolio Evolution of fixed income portfolio Composition of fixed income portfolio €bn €bn. Jun-26. 15.2% 17.3% 17.5% Spain 34.7 34.8 Italy 30.9 5.4 5.6 19.7 5.3 4.5 3.3 2.1 Other non-EU 5.9 governments & agencies Other EU governments 29.2 29.3 Corporates & Financials 25.0 Jun-25 Ma

  35. Slide 35: NPA evolution

    Appendix 5 NPA evolution Foreclosed assets €M 24% Stock sold L12M -18% YoY 773 40% 36% 659 636 35% +9% Average premium 38% 33% Jun-25 Mar-26 Jun-26 Jun-25 Mar-26 Jun-26 92% Finished properties (stock) Foreclosed assets Coverage ratio Non-performing assets exposure and coverage ratio €M -9% YoY 64% 6

  36. Slide 36: Sabadell's Commitment to Sustainability 2030

    Appendix 6 Sabadell’s Commitment to Sustainability 2030 New ESG action framework with a 2030 horizon: 20 Be a leading sustainable Support customers and investors with Work together for a sustainable and targets by 2030 institution transition cohesive society 20 commitments to drive Be an institution

  37. Slide 37: ESG 2030 targets

    Appendix 6 ESG 2030 targets Indicators 2030 Targets Carbon footprint 9% reduction in own carbon footprint (Scopes 1 and 2) Emissions neutrality Maintain neutrality of own greenhouse gas emissions Sustainable Institution Diversity Women in the management team to reach 40% Gender pay gap Adjusted pay

  38. Slide 38: RWAs breakdown

    Appendix 7 RWAs breakdown By type: By geography: Spain Credit risk Operational risk €57.2bn €12.7bn €63.6bn €70,748M UK Jun-26 phase-in RWAs Market risk Others €2.8bn €0.5bn €0.3bn Mexico €4.3bn 38

  39. Slide 39: MDA Buffer

    Appendix 8 MDA Buffer As of Jun-26 Capital Requirements Capital position (phase-in) 423 bps MDA buffer Pillar 1 CET1 4.50% Pillar 2 CET1 Requirement (P2R) 1.18%1 Capital Conservation Buffer 2.50% 5.9% Countercyclical Buffer 0.49% Leverage ratio phase-in Other Systemically Important 0.25% Institution

  40. Slide 40: One-off items

    Appendix 9 One-off items €M 2Q26 1H26 L12M Concept P&L line impacted Gross Net Gross Net Gross Net Gain on sale of assets and 331 316 331 316 331 316 other results Sale of TSB Trading income & forex 9 6 9 6 9 6 FX hedge on the proceeds from the sale Trading income & forex -3 -2 -17 -12 -44 -31 of TS

  41. Slide 41: Artificial intelligence

    Appendix 10 Artificial intelligence AI drives value by improving… Starting our transformation journey Using AI tools How we interact with our 100% employees (>1.000 user generated agents) customers >95% calls analysed To improve call resolution NPS Internal productivity >10% time reduction In call r

  42. Slide 42: A governance framework for secure, transparent and supervised usage of AI

    Appendix 10 A governance framework for secure, transparent and supervised usage of AI Banco Sabadell has a governance and control framework for its analytical models and artificial intelligence, which is risk- based and aligned with the European Artificial Intelligence Act, to ensure its responsible

  43. Slide 43: Glossary

    Glossary AuM Asset under Management MoM Month on Month AI Artificial intelligence MREL Minimum Requirement of Eligible Liabilities bps Basis points 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 Require

  44. Slide 44: Disclaimer

    Disclaimer This presentation (the "Presentation") has been prepared and is issued by, and is the sole public both in Banco Sabadell´s website (www.grupbancsabadell.com) and in the CNMV’s website (https://www.grupbancsabadell.com/corp/en/shareholders-and-investors/economic-and-financial- responsibili

  45. Slide 45: ©Sabadell

    ©Sabadell

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