High rates and the improvement in the economic situation have allowed Banc Sabadell to earn 1,332 million euros in 2023. This is 55.1% more than in 2022 and represents the highest figure the bank has reached.
Of these profits, almost 15% come from the British subsidiary TSB, which contributed 195 million. The growth compared to the previous year is 70.9%, as reported by the financial institution.
In a statement, the bank highlighted that the improvement in profits is due to the growth in margins (interest margins increased by 24%) and the reduction in provisions due to improved credit. The increase in profits occurred despite lower income from provisions and the increase in the tax bill. The bank tax that the Government threatens to make permanent rose to 157 million last year.
According to the CEO, César González-Bueno, the 2023 results are "a consequence of the profound transformation undertaken in recent years." The first executive - who took the reins in 2021 - has indicated in a statement that the The objective is to grow in individuals and companies and SMEs.
The bank has also detailed that shareholder remuneration will grow by 55% after the board of directors approved a complementary dividend of three cents per share and a share buyback program of 340 million euros. The aggregate payment to shareholders will be 666 million.
The set profitability objective is 11.5% while the solvency measured in capital is to exceed 13%. The financial director, Leopoldo Alvear, stressed that "we have strengthened our balance sheet, with a reduction in problematic assets and an increase in coverage."
In the current environment of high interest rates, the bank's outstanding credit fell by 4.1%, to 149,798 million euros. Although Sabadell has highlighted the different behavior of the products. Consumer credit and business financing grew while the formalization of mortgages decreased, "as demand has retreated from its maximum levels due to the rise in prices derived from the rise in interest rates."
In the last year, the bank has continued to reduce the number of offices by 41, to 1,420. On the other hand, Sabadell increased its workforce by more than 300. Last year it closed with 19,316 employees.
