With one quarter left to close the year, Banc Sabadell has achieved its record profits in the first nine months of the year with 1,028 million euros. It is 44.9% more than in the first three quarters of last year. The rise in rates has favored the improvement of the interest margin since the bank earns more for the same loans.
The recurring margin - which is the result of adding the interest margin and commissions, and subtracting the costs - increased by 38.8% in the period. The growth in profits for Sabadell and the rest of the sector in Spain occurs just when one of the Government's partners (Sumar) has asked to make the banking tax that expires this year permanent. The pact between the PSOE and Sumar contemplates the review of this tax with the idea of making it permanent.
In a statement, the bank's CEO, César González-Bueno, explained today that "we continue with the radical transformation of our business in order to expand the customer base and increase their loyalty." The banker added that the Board has approved an interim cash dividend of three cents per share, which will be paid in December. It is 50% more than the previous year's amount for this payment.
The negative impact of the rate increase can be seen in the drop in outstanding credit of 3.3%. The entity recalled how in recent months there have been mortgage repayments, a lower strength of business investment and Public Administration loan maturities.
As for TSB, the British subsidiary of Sabadell improved its profit by 48.1%, to 152 million pounds (174 million euros).
