Efe Barcelona

Barcelona

Updated Thursday, February 1, 2024-07:50

Banco Sabadell closed 2023 with profits of 1,332 million euros, 55.1% more than in 2022, driven by factors such as the

rise in rates,

a result that is the best in the history of the entity.

The bank, which this Thursday released its 2023 accounts, had never exceeded the 1,000 million euro barrier in a year until now, since its profit record was the 908 million obtained in 2006, in the midst of the real estate bubble. .

To know more

Banking.

Sabadell rethinks its individual strategy with a 2% account to gain market share

  • Editor: MARÍA HERNÁNDEZ Madrid

Sabadell rethinks its individual strategy with a 2% account to gain market share

Results.

Sabadell achieves a record profit of 1,028 million driven by the rate increase

  • Editor: MARÍA HERNÁNDEZ Madrid

Sabadell achieves a record profit of 1,028 million driven by the rate increase

As detailed to the CNMV, the stock market supervisor, the increase in the

interest margin, which amounted to 4,723 million, 24.3%

more than in 2022, as well as the reduction in the volume of provisions due to the improvement in credit quality favored this result, given that both factors compensated for lower client commissions and the increase in the tax bill.

Although the interest margin, that is, the difference between the profitability of the asset, such as the loans granted, and the interest paid by the bank, rose by 24%,

net commissions fell by 7%

, to 1,386 millions.

Thus, the income of the banking business, which is the sum of the interest margin and net commissions, reached 6,109 million euros in 2023, 15.5% more in year-on-year terms, while the gross margin totaled 5,862 million , 13.2% more.

Recurring costs

rose to 2,982 million, representing

an increase of 3.5%

year-on-year, although the efficiency ratio continued to improve and stood at 42.6%.

Likewise, the customer margin continued its upward trend and at the end of the year stood at 2.99%, after registering a growth of 46 basis points in 2023.

More consumer and business credit but fewer mortgages

In line with the trend of the sector, the granting of

mortgages totaled 3,764 million, 34% less than in 2022

, due to the increase in interest rates.

On the other hand, the new production of credit to companies, that is, medium and long-term financing, amounted to 11,716 million euros, 7% more, and credit lines (current) increased by 1% compared to 2022.

Likewise, the granting of consumer credit showed its good dynamics and grew by 25% in Spain, up to 2,102 million.

Banco Sabadell's outstanding credit closed the year with a balance of 149,798 million euros, which represents a year-on-year drop of 4.1%.

Profitability rises to 11.5%

The so-called RoTE, that is, the financial return on tangible capital, rose to 11.5% at the end of 2023, compared to 7.8% at the end of 2022.

The fully-loaded CET1 capital ratio - which measures solvency incorporating all the regulator's requirements - was also substantially increased to 13.21%, 67 basis points more than in 2022.

As for

2024, the bank plans to maintain profitability

above that 11.5% threshold and capital at levels above 13%, while expecting the interest margin to continue its upward trend.

Delinquency contained

Regarding the default ratio, it remains contained and the bank closed the year with a default rate of 3.52%, slightly higher than that of 2022, which was then 3.41% but lower than that of 2021, which was 3.65%.

Problematic assets decreased during the year by 223 million euros, ending with a balance of 6,748 million, of which 5,777 million are doubtful loans and 971 million are foreclosed assets.

TSB contributes 195 million to the group

As for the British subsidiary, TSB, it closed the year with profits of 175 million pounds, 70.9% higher than in 2022, with which TSB contributed 195 million euros to the profit of the Banco Sabadell group.

The British subsidiary increased its recurring margin by 3.9% year-on-year, to 361 million pounds, while net interest income rose 4.1%, to 1,022 million pounds, due to the higher interest rates.

Banco Sabadell has also specified that

TSB has initiated "an efficiency improvement plan to reduce costs

and thus focus on the acceleration of its main activity, that linked to the marketing of mortgages, in which it has historically specialized."

After meeting the objectives of the plan it presented in 2021, the bank aims to increase the base of individual and business clients in 2024, and make Banco Sabadell their main entity, as well as continue reducing the cost of risk with a new model. Of relationship.

The group closed 2023 with a total of 19,316 employees, 421 less than the previous year, while its office network totals 1,420, 41 less than in 2022.