Banco De Sabadell Sa · BME:SAB

Banco De Sabadell Sa — Banco De Sabadell Sa Ord — Q1 2026 Earnings Presentation

41 slides from Banco De Sabadell Sa's earnings presentation, May 5, 2026

  1. Slide 1: 1Q26 Results

    Sabadell 1Q26 Results May 5, 2026

  2. Slide 2: Index

    Index 1 1Q26 highlights 2 Financial results 3 Balance sheet 4 Closing remarks

  3. Slide 3: 1Q26 Highlights

    Sabadell 1Q26 Highlights

  4. Slide 4: 1Q26 highlights

    1Q26 highlights 1 Sale of TSB completed and €0.50 per share extraordinary dividend to be paid on May 29th 2 Core revenues bottomed out in 1Q26 and will increase in each subsequent quarter of 2026, as previously anticipated 3 Early retirement programme underway, with efficiency gains fully in place i

  5. Slide 5: 1Q26 key financial messages

    1Q26 key financial messages Momentum in commercial Asset quality keeps improving activity continues Total cost of risk3: 38bps (-11bps YoY) Performing loans: +5.6% YoY Total NPAs -14% YoY Customer funds: +5.9% YoY 14.1% Total provisions / stage 3 at 71% (+4pp YoY) Core revenues bottomed Recurrent ou

  6. Slide 6: Executed the closing of the sale of TSB

    Executed the closing of the sale of TSB Full completion of the sale of TSB Significant value has been generated for shareholders £2.65bn £0.21bn £2.86bn Initial TNAV Final Transaction multiples are above both sale price contribution sale price peer transactions and Group multiples The transaction ge

  7. Slide 7: Conditions in place to resume mutually agreed early retirements

    Conditions in place to resume mutually agreed early retirements Early retirements catch-up • Since the 2022 efficiency program, early retirement measures ~€40M have been applied only to a limited extent. Conditions are Gross savings (annual basis) now in place to resume the early retirement plan: ‒

  8. Slide 8: Slower household lending, particularly mortgages, while SME loans regained momentum

    Slower household lending, particularly mortgages, while SME loans regained momentum Mortgages Consumer loans €M, quarterly new lending in Spain €M, quarterly new lending in Spain 1,645 1,670 -24 % 698 745 -4 % 668 1,242 Var. YoY Var. YoY -26 % -10 % Var. QoQ Var. QoQ 1Q25 4Q25 1Q26 1Q25 4Q25 1Q26 SM

  9. Slide 9: Current new lending levels support loan growth across segments and geographies

    Current new lending levels support loan growth across segments and geographies Performing loans by segment €bn Mar-26 QoQ YoY Mar-26 QoQ YoY Mexico +6.9% +21.3% Mortgages 39.8 +0.2% +4.1% 5.3 Constant FX +5.1% +21.9% Consumer loans 5.5 +1.5% +14.8% Miami +9.1% +11.4% Constant FX 7.5 +6.7% +18.4% SME

  10. Slide 10: Customer funds remained stable in the quarter

    Customer funds remained stable in the quarter Total customer funds On-balance sheet funds breakdown €M €bn Mar-26 QoQ YoY On-balance sheet 132,239 +0.2% +4.3% Remunerated Non-remunerated 132.2 Mar-26 48.3 Of which: 83.9 124,978 +0.5% +4.7% Spain Off-balance sheet 52,529 -0.2% +10.4% Cost of customer

  11. Slide 11: This quarter marks the trough in revenues, with improvement ahead

    This quarter marks the trough in revenues, with improvement ahead P&L 1Q26 (€M) 1Q26/4Q25 1Q26/1Q25 NII 872 -2.5% -3.5% Fees Total recurrent costs 315 -569 -5.1% -6.0% -2.2% +3.4% 14.1% 13.2% Recurrent CET1 FL Provisions -133 +7.3% +4.6% RoTE1 14.5% Net profit 284 -8.4% -28.1% 2026 RoTE target Net p

  12. Slide 12: Financial results

    Sabadell Financial results

  13. Slide 13: On track to meet our profitability target of 14.5% at year-end

    On track to meet our profitability target of 14.5% at year-end Sabadell ex-TSB €M 1Q26 1Q26/4Q25 1Q26/1Q25 Non-recurrent items: Net interest income 872 -2.5% -3.5% 1 Includes -€14M related to FX hedge on Fees & commissions 315 -5.1% -2.2% the proceeds from the sale of TSB Core banking revenue 1,187

  14. Slide 14: NII bottomed out, driven by the final quarterly negative repricing and fewer calendar days

    NII bottomed out, driven by the final quarterly negative repricing and fewer calendar days Quarterly NII NII QoQ evolution €M €M 1Q26/4Q25 895 872 904 895 872 - 2.5 % -8 -6 -6 -3 1Q26/1Q25 - 3.5 % 3Q25 Customer NII ALCO, liquidity and Wholesale funding cost Day count Others 4Q25 ex-TSB ex-TSB 1Q25 4

  15. Slide 15: NII will increase at low-single digit quarterly

    NII will increase at low-single digit quarterly NII expected quarterly evolution 4Q26 vs 4Q25 Quarterly NII is expected to steadily increase, with mid-single-digit Mid-single digit growth growth in 4Q26 compared to 4Q25, driven by: • Higher and more volatile interest rate environment (prev. stable)

  16. Slide 16: Commissions impacted by the absence of success fees and seasonality in the quarter

    Commissions impacted by the absence of success fees and seasonality in the quarter Fees & commissions Lower Q1, with negative QoQ variation, driven by: €M • 4Q25 success fees in Asset Management and 322 332 1Q26/4Q25 Insurance 315 72 - 5.1 % • Seasonality with lower day count 67 65 • One-off fee pay

  17. Slide 17: Costs impacted by efficiency initiatives

    Costs impacted by efficiency initiatives Total costs In the quarter, total recurrent costs decreased €M mainly driven by: 624 605 • Lower personnel expenses (€16M in 55 1Q26/4Q251 4Q25 related to the extraordinary 550 119 - 3.0 % remuneration due to the end of the tender 85 100 offer) 166 171 162 •

  18. Slide 18: Total CoR at contained levels supported by solid asset quality

    Total CoR at contained levels supported by solid asset quality Credit provisions 1Q25/4Q25 Total provisions 1Q26 breakdown €M - 12.0 % €M 19 133 107 23 94 94 58 -4 1Q26/1Q25 + 64.2 % 1Q25 4Q25 1Q26 Credit provisions Foreclosed NPA Other provisions Total provisions for NPLs asset provisions managemen

  19. Slide 19: Balance sheet

    Sabadell Balance sheet

  20. Slide 20: Continuous improvement of NPL ratio and coverage ratios

    Continuous improvement of NPL ratio and coverage ratios NPL and coverage ratios Exposure and coverage ratio by stage €M, % €M 71% Stage 2 Stage 3 69% Total provisions / stage 3 Mar-26 YoY Mar-26 YoY 67% Exposure (€M) 5,715 -1,231 3,411 -532 % of total loan book 4.3% -117bps 2.5% -54bps Coverage 4.5%

  21. Slide 21: Total NPAs continued to decline at a double-digit rate in the year

    Total NPAs continued to decline at a double-digit rate in the year Foreclosed assets NPAs Key ratios €M €M % 93% 64% 65% 24% Finished 63% Mar-25 Dec-25 Mar-26 properties Stock sold L12M +8% (stock) Coverage ratio Gross NPA ratio1 3.7% 3.2% 3.0% Average premium Net NPA ratio 1.4% 1.1% 1.1% -14% YoY 4

  22. Slide 22: Solid liquidity position with stable credit ratings

    Solid liquidity position with stable credit ratings Liquidity metrics Long-term ratings YTD new issuances Mar-26 Instrument Size (€Bn) 92% 135% 186% Long-term credit rating Outlook Covered bonds 0.5 Loan-to-deposit NSFR LCR Standard A- Positive & Poors Moody’s Baa1 Stable Fitch BBB+ Stable Total liq

  23. Slide 23: TSB sale unlocks >400bps of capital for shareholders

    TSB sale unlocks >400bps of capital for shareholders Evolution of CET1 fully-loaded 405bps Total impact of TSB sale 32bps of capital generation pre dividend accrual +369bps1 +42bps +36bps -4bps -6bps -26bps -378bps 60% pay-out 13.02% 13.11% 13.18% 13.09% 13.09% 13.45% +7bps Dec-24 Dec-25 Organic CET

  24. Slide 24: Closing remarks

    Sabadell 4. Closing remarks

  25. Slide 25: Our growth strategy has proved to be successful and has structurally transformed the bank

    Our growth strategy has proved to be successful and has structurally transformed the bank 2020 2027 ROTE 0% ROTE 16% Strategy deployment 2021 1Q26 Growth • Performing loans growth €110.9bn €121.6bn while decreasing • Digital customer acquisition 0% of detotal ~60% of total CoR • Cost of risk decreas

  26. Slide 26: Appendix

    Appendix 1 NIM and customer margin 2 Debt maturities 3 MREL position 4 ALCO portfolio 5 ESG 2030 goals 6 TSB 7 RWAs breakdown 8 MDA buffer 9 Sabadell income statement

  27. Slide 27: 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 & NIM %, in euros %, in euros 3.10% 4.09% 3.88% 3.00% 2.91% 3.68% 3.64% 3.63% 2.88% 2.85% 0.99% 0.88% 0.78% 1.89% 1.85% 1.83% 0.77% 0.76% 1.79% 1.78% 1Q25 2Q25 3Q25 4Q25 1Q26 1Q

  28. Slide 28: Next debt maturities

    Appendix 2 Next debt maturities 4,210 3,718 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 1,268 750 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 Total

  29. Slide 29: 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 bonds 11/03/2026 (called)

  30. Slide 30: MREL position

    Appendix 3 MREL position 28.6% MREL ratio % RWA pro forma post TSB sale MREL position, Sabadell Group % Risk Weighted Assets (RWAs phase-in), 25.64% 26.36% 8.63% 2026 6.26% % Leverage Ratio Exposure (LRE) new requirement 1 3.48% 2026 1.14% new requirement 1 5.22% 1.71% Subordinated Subordinated 24.5

  31. Slide 31: ALCO portfolio

    Appendix 4 ALCO portfolio Evolution of fixed income portfolio Composition of fixed income portfolio €bn €bn. Mar-26. 17.1% 17.8% 15.4% 35.8 33.7 30.5 19.4 5.2 4.8 3.2 3.2 6.5 6.7 7.2 Spain Italy Other non-EU Government & agencies Other EU Government Corporates & Financials 27.1 29.2 23.3 • As of Mar

  32. Slide 32: Sabadell Sustainable Commitment 2030

    Appendix 5 Sabadell Sustainable Commitment 2030 New ESG action framework with a 2030 horizon: 20 Leading Supporting clients Working towards a sustainable and investors in the sustainable and institution transition cohesive society targets by To be a benchmark institution renowned for its ESG perform

  33. Slide 33: ESG 2030 targets

    Appendix 5 ESG 2030 targets Indicator 2030 Targets Carbon footprint 9% reduction in own carbon footprint (Scopes 1 and 2) Emissions neutrality Maintain neutrality of own greenhouse gas emissions Diversity Reach 40% women representation in the executive team Gender pay gap Reduce adjusted gender pay

  34. Slide 34: TSB P&L and balance sheet

    Appendix 6 TSB P&L and balance sheet TSB performing loans and customer TSB standalone P&L and its contribution deposits to Sabadell £bn £M 1Q26 1Q26/4Q25 1Q26/1Q25 Mar-26 QoQ YoY NII 268 -2.4% +2.9% Fees & commissions 17 -6.2% -8.4% Performing loans 35.8 -0.3% -0.9% Total costs -178 -8.2% -0.6% Cust

  35. Slide 35: TSB asset quality, solvency and liquidity position

    Appendix 6 TSB asset quality, solvency and liquidity position Asset quality TSB core mortgage portfolio overview % Mar-25 Dec-25 Mar-26 NPL ratio 1.5% 1.5% 1.5% 9% 2% Mortgages Coverage ratio 35% 32% 32% 5% 84% > 90 % Cost of risk 1 (YTD) 0.18% 0.13% 0.17% 9% Total loan book Liquidity £33.5bn Mar-25

  36. Slide 36: RWAs breakdown

    Appendix 7 RWAs breakdown By type: By geography: Credit risk €67.3bn Spain €62.6bn Mar-26 Market risk phase-in RWAs €0.5bn UK €80,717M Operational risk €13.9bn €12.7bn Others Mexico €0.2bn €4.2bn 36

  37. Slide 37: MDA buffer

    Appendix 8 MDA buffer Group Pro-forma ex TSB (Mar-26) (Mar-26) Capital Capital Capital Capital Leverage Position Position Requirements Requirements MDA buffer (phased-in) (phased-in) ratio phase-in Pillar 1 CET1 4.50% 4.50% 405 bps 5.2 % Pillar 2 CET1 1.18%1 1.18%1 Requirement (P2R) Capital Conserva

  38. Slide 38: Sabadell Income statement

    Appendix 9 1Q26 Sabadell Income statement € million Excl. TSB TSB Incl. TSB Net interest income 872 309 1,181 Net fees and commissions 315 19 334 Core revenues 1,187 328 1,516 Net trading income and exchange differences 1 0 1 Income from equity method and dividends 24 0 24 Other operating income/exp

  39. Slide 39: Glossary

    Glossary AuM Asset under Management MoM Month over month variation 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 Cap

  40. Slide 40: Disclaimer

    Disclaimer This presentation (the "Presentation") has been prepared and is issued by, those filed with the Spanish Securities and Exchange Commission (“CNMV”) (https://www.grupbancsabadell.com/corp/en/shareholders-and- and is the sole responsibility of, Banco de Sabadell, S.A. ("Banco Sabadell" and

  41. Slide 41: ©Sabadell

    ©Sabadell

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