Banco Sabadell sees "unavoidable" the charge for the custody of deposits to its customers, although it considers that it will be done "gradually" and will depend on the "competitive environment", that is, what the rest of the banks do.

The CEO of the entity, Jaime Guardiola, has said that the process will begin with clients with a more financial and institutional profile - the entity already charges 0.5% to a portfolio of 2.5 billion euros - and will be extended between Companies from largest to smallest. Will there be a charge to households? "We do not know how to say right now, it will depend on the competitive environment," he responded during the press conference presenting results for the third quarter of the year.

The main executives of the financial sector have changed their discourse on this issue by predicting that the current scenario of negative interest rates in Europe is on track to continue in the medium or long term. Many of them denied months ago that they came to charge their domestic customers, and now that situation is not ruled out for those with greater savings deposited in the entity. The sector speculates on figures ranging from 500,000 to one million euros, as the president of the European banking federation advanced this week.

In any case, Guardiola has argued that the collection is made following the guidelines of the ECB itself, which chooses to charge the banks 0.5% for its excess liquidity to push them to give more credit. "We only moved the measure," he defended.

This is one of the main measures in which the sector works to reduce costs and preserve the fall of its margins, but there is more. Guardiola has also announced that the entity will close next year about 200 offices in line with the network restructuring process that it has been doing in recent years. In addition, the entity will continue to strengthen its fixed-rate mortgage portfolio despite the latest criticism expressed by the president of the Single Banking Supervision Mechanism (MUS) of the European Central Bank (ECB).

On the other hand, the group also foresees a reduction in its delinquency portfolio in the coming quarters after the number of foreclosures that had been paralyzed by the uncertainty about the new mortgage law was unblocked. These assets will then be sold collectively or individually.

In relation to the runrún regarding the reactivation of mergers in the financial sector, the CEO has ruled out the possibility of an integration with Bankia and has emphasized that the bank is working on the internal improvement of its income statement. "There is an industrial logic of mergers as a way of reducing costs, especially in the current scenario of pressure in the margin of interest. Mergers must create value for the shareholder, and our focus is not there. We only think of the improvement of our results generation profile, "he concluded.

Triple benefits

Banco Sabadell has registered an attributed net profit of 783 million euros until September, which represents 216% more compared to the same period last year, when the benefit stood at 248 million.

As reported on Friday by the financial entity to the National Securities Market Commission (CNMV), the income of the banking business, which includes interest margin and net commissions, shows sustained growth with a year-on-year increase of 1.6% a group level, and in quarterly terms they remain stable and grow at a constant exchange rate of 0.6%.

The bank chaired by Josep Oliu has an interest margin of 2,712 million euros at the end of September, 1.1% less year-on-year due to the application of international financial reporting regulations 16, related to leasing, and lower interest rates at long term, while in the quarter it has grown 0.1%, standing at 906 million.

Net commissions have grown by 9.1% year- on- year driven by service commissions, total costs have reached 2,367 million and total endowments and impairments amount to 568 million.

Regarding the solvency level, Banco Sabadell has reached a 'CET1 fully loaded' ratio at 11.4%, and the 'CET1 phase in' ratio reaches 12.1%, so that the entity maintains its objective of closing the fiscal year 2019 with a capital ratio 'CET1 fully loaded' of at least 11.6%.

Problematic assets

The balance of problematic assets amounts to 7,424 million euros at the end of September, of which 6,391 million correspond to doubtful assets and 1,032 million to foreclosed assets, which represents a reduction in the year of 855 million euros, and stands out in the quarter reduction of 829 million euros, mainly from the sale of portfolios.

In August, Banco Sabadell agreed to sell a portfolio of real estate assets called 'Rex' to a subsidiary of Cerberus, 80% owned by the fund and the remaining 20% ​​by the bank, with an approximate joint net book value of 342 million euros and a purchase and sale price of the operation of 314 million.

The delinquency ratio stands at 4.08% , compared to 4.50% last year, and if the securitization operation of consumer loans for 1,000 million euros in September is isolated, the default ratio remains at 4.05%

Credit

Live credit closes the third quarter of 2019 with a balance of 140,901 million euros and shows an annual growth of 0.5% due to the securitization of consumer loans made in * the quarter, while excluding the impact of the low portfolio The EPA of CAM and securitization, the increase is 2.5% year-on-year.

As for other figures of the group, the balance of client resources is 142,416 million (+ 5.4% year-on-year), and those from abroad to 43,689 million - keeping stable -, and the managed resources total 210,201 million, This represents a 2.5% year-on-year increase.

Demand account balances amount to 115,130 million euros, 8.1% more year-on-year and 1.3% more quarterly, while term deposits total 27,647 million.

The bank has stressed that the activity of attracting companies and individuals has been "intense", with a total of 325,922 high, and by segments, the group has captured 253,208 new private customers and 72,714 companies.

As for TSB, the British subsidiary of Banco Sabadell, will present its new master plan on November 25 in London and continues to improve its business activity.

Thus, the resources of clients in balance sheet show an increase of 2.1% year-on-year and 1.5% in the quarter supported by the growth of sight accounts, and credit investment shows a growth of 0.9% year-on-year and 2.8% in the quarter due to the high volume of applications received, which translated into greater formalities.

According to the criteria of The Trust Project

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