Banco De Sabadell Sa · BME:SAB
Banco De Sabadell Sa — Banco De Sabadell Sa Ord — Q2 2025 Earnings Presentation
39 slides from Banco De Sabadell Sa's earnings presentation, Jul 24, 2025
Slide 1: 2Q25 Results
Sabadell 2Q25 Results July 24, 2025
Slide 2: Index
Index 1 2Q25 highlights 2 Financial results 3 Balance sheet 4 Closing remarks
Slide 3: 2Q25 Highlights
Sabadell 2Q25 Highlights
Slide 4: Another set of results beating consensus forecasts
Another set of results beating consensus forecasts Resilient core banking revenues Commercial activity continues to (ex-TSB) accelerate in Spain NII: +0.3% QoQ Performing loans: +6.1% YoY Customer funds: +7.3% YoY 14.4% Fees: +1.5% QoQ Core banking revenues: +0.6% QoQ Recurrent Asset quality keeps i
Slide 5: Prudent and profitable growth enables improved RoTE guidance
Prudent and profitable growth enables improved RoTE guidance Probability of Default evolution by segment Our strategy focused on profitable growth is delivering: Loan growth Probability of Default Improved ex-TSB YoY reduction1 Improved Cost of Risk 2025e ~35bps outlook, reflecting stronger Total Co
Slide 6: Loan volumes accelerated further in Spain while customer funds were boosted by off-balance sheet
Loan volumes accelerated further in Spain while customer funds were boosted by off-balance sheet products Performing loans across geographies Total customer funds €M €M Jun-25 QoQ YoY Jun-25 QoQ YoY Spain 103,369 +3.6% +6.1% On-balance sheet 127,404 +0.4% +4.4% ex TSB Other international +0.2% +3.5%
Slide 7: Strong new lending continues to foster loan book growth
Strong new lending continues to foster loan book growth in both retail and business segments Mortgages Consumer loans €M, quarterly new lending in Spain €M, quarterly new lending in Spain 1,499 1,645 1,817 +21 % 642 698 750 +17 % Var. YoY Var. YoY +44% +21% +10 % 1H25/1H24 +7 % 1H25/1H24 Var. QoQ Va
Slide 8: Payment services remained strong. Savings & investment growth driven by off-balance sheet
Payment services remained 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) 6,191 6,060 6,662 +8 % 14,428 13,043 14,976 +4 % Var. YoY Var. YoY +7% +4% +10 % 1H25/1H24
Slide 9: Positive loan growth across segments
Positive loan growth across segments Performing loans by segment, ex-TSB €bn Jun-25 QoQ YoY Jun-25 QoQ YoY Mexico 4.3 -1.0% -7.3% Mortgages 38.9 +1.6% +5.7% Constant FX +3.6% +3.3% Consumer loans 5.0 +4.6% +20.1% Miami 6.6 -2.5% +2.2% Constant FX +5.6% +11.9% SMEs & Corporates 45.5 +2.1% +3.2% Forei
Slide 10: TSB volumes remained broadly stable in the quarter
TSB volumes remained broadly stable in the quarter Quarterly new mortgage lending TSB performing loans TSB customer deposits1 £M £bn £bn -17% Var. YoY Jun-25 QoQ YoY Jun-25 QoQ YoY -29% Secured 33.7 -0.1% -0.8% Current 13.6 -1.7% -2.1% Var. QoQ Accounts 1,508 Consumer lending 1.3 -1.0% +4.7% Savings
Slide 11: TSB will continue contributing to Group results until the sale is completed
TSB will continue contributing to Group results until the sale is completed TSB standalone P&L and its contribution to Sabadell £M 2Q25 2Q25/1Q25 1H25 1H25/1H24 2Q25 results aligned with 2025 guidance: NII 257 -1.4% 518 7.9% • Net Interest Income to grow by high Fees & commissions 20 9.6% 38 -16.9%
Slide 12: Highest H1 net profit in Sabadell's history for ex-TSB perimeter
Highest H1 net profit in Sabadell’s history for ex-TSB perimeter P&L Ex-TSB 2Q25 (€M) 2Q25/1Q25 1H25 (€M) 1H25/1H24 NII 906 +0.3% 1,810 -6.3% 13.6% CET1 FL +25bps Fees 327 +1.5% 649 +4.6% QoQ Total costs -535 -2.6% -1,085 +1.8% Provisions -114 -10.4% -241 -33.2% 14.4% Recurrent Net profit (Ex-TSB) 4
Slide 13: Financial results
Sabadell Financial results
Slide 14: Profitability continued to increase
Profitability continued to increase Sabadell ex-TSB Sabadell Group €M 2Q25 1H25 2Q25/1Q25 1H25/1H24 2Q25 1H25 2Q25/1Q25 1H25/1H24 Net interest income 906 1,810 0.3% -6.3% 1,209 2,425 -0.5% -2.7% Fees & commissions 327 649 1.5% 4.6% 350 694 1.9% 3.0% Core banking revenue 1,233 2,459 0.6% -3.7% 1,560
Slide 15: Loan volume growth is helping to stabilise NII despite ongoing rate pressure
Loan volume growth is helping to stabilise NII despite ongoing rate pressure Group NII Group NII QoQ evolution €M Group Ex-TSB €M 1,209 1,262 1,216 1,209 2Q25/1Q25 2Q25/1Q25 904 906 303 283 - 0.5 % + 0.3 % +19 +2 312 303 -13 -6 Customer margin -28 Loan Volumes 1H25/1H24 1H25/1H24 904 979 904 906 +17
Slide 16: Fees growing at mid-single digit ex-TSB
Fees growing at mid-single digit ex-TSB Group fees & commissions Group Ex-TSB €M 344 350 335 2Q25/1Q25 2Q25/1Q25 22 24 24 + 1.9 % + 1.5 % Increase in fees in the quarter 67 71 72 driven by credit and contingent risk fees and services fees 167 177 1H25/1H24 1H25/1H24 166 Fees & commissions (ex-TSB) g
Slide 17: Total cost remains contained
Total cost remains contained Group costs €M Group Ex-TSB 764 758 752 2Q25/1Q25 2Q25/1Q25 Ex-TSB: costs declined in the quarter - 0.8 % - 2.6 % driven by lower administrative and 125 114 118 personnel costs 197 180 188 TSB: expenses increased QoQ due to 1H25/1H24 1H25/1H24 personnel cost inflation. W
Slide 18: Positive trend in asset quality reduced total CoR further
Positive trend in asset quality reduced total CoR further Group credit provisions Group Ex-TSB Group total provisions 2Q25 breakdown €M €M 2Q25/1Q25 2Q25/1Q25 - 14.3 % + 11.0 % 109 9 2 114 35 4 77 66 3 20 64 2 104 1H25/1H24 1H25/1H24 58 64 - 47.9 % - 52.0 % 2Q24 1Q25 2Q25 Credit Foreclosed NPA Other
Slide 19: Balance sheet
Sabadell Balance sheet
Slide 20: Continuous improvement of NPL ratio and coverage ratios
Continuous improvement of NPL ratio and coverage ratios NPLs and coverage ratios Exposure by stage and coverage ratio €M, % €M Stage 2 Stage 3 Ex-TSB Total provisions / Jun-25 YoY Jun-25 YoY 69% stage 3 67% Exposure (€M) 9,810 -2,323 4,292 -1,146 Group % of total loan book 5.7% -151bps 2.5% -74bps 6
Slide 21: Total NPAs improved in the year, dropping by -20%
Total NPAs improved in the year, dropping by -20% Group foreclosed assets NPAs Group key ratios €M €M Jun-24 Mar-25 Jun-25 25% 94% Gross NPA ratio1 3.7% 3.1% 2.9% Stock sold Finished 64% Ex-TSB L12M +11% properties 63% Coverage 59% ratio Net NPA ratio 1.6% 1.3% 1.2% Average premium 59% 60% Group Net
Slide 22: A solid liquidity profile complemented by strong credit ratings
A solid liquidity profile complemented by strong credit ratings Liquidity metrics Total liquid assets Long-term ratings Sabadell Ex-TSB €bn Quarterly changes highlighted in blue Group Jun-25 96% 93% 59 63 18 61 b Long-term credit rating Outlook Loan-to-deposit Loan-to-deposit 16 18 8 7 7 Standard A-
Slide 23: Ample MREL management buffers
Ample MREL management buffers MREL position, Sabadell Group YTD new issuances Maturity % Risk Weighted Assets (RWAs phased-in), % Leverage Ratio Exposure (LRE) Instrument Date Size (€M) (Years) Coupon Covered bonds (TSB) Feb 18th 600 5 2.70% 28.99% 9.10% Senior non preferred Feb 18 th 500 8NC7 3.38%
Slide 24: Generating capital while growing loan book at mid-single digits
Generating capital while growing loan book at mid-single digits Evolution of capital ratios Shareholder value creation2 61bps of capital generation MDA buffer pre dividend accrual 468bps +15% 18.54% 19.29% 17.87% +62bps +5bps -6bps CET1 -36bps variation 60% ordinary pay-out 0.23 QoQ 13.48% 13.31% 13
Slide 25: €3.8bn shareholder remuneration in less than 12 months
€3.8bn shareholder remuneration in less than 12 months In less than 12 months 2025 2025 2026 €1.3bn €2.5bn 29 August 29 December March/April Expected shareholder + Extraordinary cash dividend2,3 distribution1 New 2nd interim Final 7 euro Recurrent cts/share dividend dividend5 2025 2025 shareholder c
Slide 26: Closing remarks
Sabadell 4. Closing remarks
Slide 27: 2025 RoTE guidance improved to 14.5%
2025 RoTE guidance improved to 14.5% Group Ex-TSB Previous Updated New Guidance Guidance Guidance P&L targets 2025 1H25 2025 1H25 2025 Net Interest Income >€4.9bn €2.4bn ~€4.9bn €1.8bn ~€3.6bn Fees & Low-single Low-Single Mid-Single Commissions +3.0% YoY +4.6% YoY Digit YoY Digit YoY Digit YoY Low-S
Slide 28: 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
Slide 29: Appendix 1 NIM and customer margin
Appendix 1 NIM and customer margin Sabadell Group Sabadell Ex-TSB TSB %, in euros %, in euros %, in euros 3.18% 3.11% 3.16% 3.05% 2.98% 3.41% 3.30% 3.31% 3.10% 3.00% 3.07% 2.86% 2.86% 3.18% 2.71% 2.06% 2.01% 1.98% 2.55% 2.58% 2.10% 2.06% 2.06% 2.02% 1.89% 1.85% 1.97% 1.91% 2.00% 2.29% 2.26% 2.11% 2.
Slide 30: Appendix 2 Debt maturities
Appendix 2 Debt maturities 4,810 4,410 3,696 2,787 3,100 2,483 1,457 2025 2026 2027 2028 2029 2030 >2030 Covered bonds 500 1,390 2,269 2,446 2,034 1,850 1,700 Senior Preferred Debt 983 0 500 750 1,276 750 0 Senior Non-Preferred Debt 500 67 18 500 1,500 500 1,195 1 Subordinated debt 500 1 0 0 0 0 0 1
Slide 31: Appendix 2 Debt maturities
Appendix 2 Debt maturities Main debt maturities and redemptions Main debt maturities or calls in next 12 in last 6 months months Istrument Date Nominal amount Istrument Date Nominal amount Tier 2 17/01/2025 (call) €300M Covered bonds 21/07/2025 €500M Senior non-preferred bonds 24/03/2025 (call) €750
Slide 32: Appendix 3 ALCO portfolio
Appendix 3 ALCO portfolio Evolution of fixed income portfolio Composition of fixed income portfolio Sabadell Group. €bn Sabadell Group. €bn. Jun-25. 12.8% 13.3% 11.9% 33.7 31.9 18.3 1.9 4.7 3.8 0.7 29.0 4.3 6.3 6.1 6.3 Spain Italy UK Agencies & Covered bonds 25.8 27.4 Other governments and Corporate
Slide 33: Appendix 4 Main milestones in Sustainability
Appendix 4 Main milestones in Sustainability 2021-25 Sustainable finance solutions E Environmental €bn in cumulative terms since 2021 Sustainable AuM invested in sustainable 84% bond €3.7bn 8 Outstanding Outstanding funds1 issuances amount Issuances Target achieved ahead of plan S Social Women in Aw
Slide 34: Appendix 5 TSB asset quality, solvency and liquidity position
Appendix 5 TSB asset quality, solvency and liquidity position Asset quality TSB core mortgage portfolio overview % Jun-24 Mar-25 Jun-25 9% 2% Mortgages NPL ratio 1.5% 1.5% 1.4% 5% 84% > 90 % Coverage ratio 37% 35% 33% 9% Total loan 1 (YTD) book Cost of risk 0.10% 0.18% 0.02% Liquidity £33.7bn Reside
Slide 35: RWAs breakdown
Appendix 6 RWAs breakdown Jun-25 RWAs By type: By geography: €79,589M Credit risk Spain €67.1bn €62.0bn Market risk €0.5bn UK €13.4bn Operational risk €11.9bn Mexico Others €4.2bn €0.1bn 35
Slide 36: MDA buffer
Appendix 7 MDA buffer Group capital requirements Group capital position (phase-in) Leverage Pillar 1 CET1 4.50% MDA buffer ratio phase-in Pillar 2 CET1 Requirement (P2R) 1.27%1 468bps 5.4 % Capital Conservation Buffer 2.50% Countercyclical Buffer 0.43% • MDA stands at 468bps, above 8.95% Other Syste
Slide 37: Glossary
Glossary CET1 FL Common Equity Tier 1 Fully Loaded NII Net Interest Income CoR Cost of Risk NIM Net Interest Margin CRR2 Capital Requirements Regulation 2 NPA Non-Performing Asset HQLA High Quality Liquid Asset NPL Non-Performing Loan LCR Liquidity Coverage Ratio: short-term liquidity ratio NSFR Net
Slide 38: Disclaimer
Disclaimer This presentation (the "Presentation") has been prepared and is issued by, reports and documents, including those filed with the Spanish Securities and (https://www.grupbancsabadell.com/corp/en/shareholders-and- and is the sole responsibility of, Banco de Sabadell, S.A. ("Banco Sabadell"
Slide 39: ©Sabadell
©Sabadell
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