• The Chief Executive Officer emphasised that the Institution’s stock market value is “very attractive”
  • González-Bueno called into question the 25% EPS growth for shareholders who accept the takeover bid recently announced by BBVA, as it does not take into account the 2.5 billion euro dividend pledged from the sale of TSB, among other factors
  • Chief Financial Officer, Sergio Palavecino, highlighted the appeal of Banco Sabadell as a standalone entity, with estimated shareholder remuneration of 6.3 billion euros in the three-year period of the Strategic Plan 2025-2027, equivalent to 40% of its market capitalisation, and with profits in 2027 expected to surpass 1.6 billion euros, alongside rising profitability

9 September 2025

The CEO of Banco Sabadell, César González-Bueno, stressed that the Bank “is the best European stock market investment story of the last five years” during his speech at a conference organised by Barclays in New York, in which the Chief Financial Officer, Sergio Palavecino, also took part.

“It is also the best performing financial sector stock on the Ibex 35, and we know that we have not yet completed this journey”, stated the CEO, who argued that Banco Sabadell’s share price is “really attractive” and that “the share price will perform more positively once the uncertainty is resolved” – referring to the uncertainty generated by the tender offer put forward by BBVA.

He also cast doubt on BBVA’s projections regarding the increase in Earnings Per Share (EPS) that Banco Sabadell shareholders who accept the offer could expect to receive. “It is curious that it is claimed that the impact on EPS for Sabadell shareholders would be 25% if the takeover bid is successful. There are some elements that are not entirely accurate or correct. Methodologically, for example, – and this is quite striking – they do not include the 2.5 billion euro extraordinary dividend arising from the sale of TSB, which has not been reinvested in their EPS calculation”, he noted.

In response to these forecasts, “which are neither accurate nor correct”, González-Bueno reminded those present that “Banco Sabadell is growing at a slightly faster pace than the market and we will distribute 6.3 billion euros to our shareholders between 2025 and 2027, equivalent to 40% of the Institution’s market capitalisation”. And yet, he noted, valuations suggest that the Bank is still “lagging behind” its competitors, both in terms of its Price-to-Earnings ratio and its Price-to-Book ratio. “This gap will close and we should even outperform our competitors”, he asserted.

“We have always been a Bank focused on a passion for our customers and the quality of our service; we stand by that philosophy, whilst also adding very solid metrics that are fully aligned with the capital generation. And we are highly focused on rewarding our shareholders. We are taking this fantastic franchise to the next level”, Banco Sabadell’s CEO added.

In this respect, he explained that it is possible to achieve a “fantastic EPS and high net interest income, although the key is to generate capital for distribution”. “And this is precisely what we are doing at Banco Sabadell”, he added.

González-Bueno and Palavecino explained that they are fully confident of the appeal of the Bank’s standalone strategy, as set out in the 2025-2027 Strategic Plan, according to which it expects profits in 2027 to exceed 1.6 billion euros and ROTE to rise to 16% following the deconsolidation of its British subsidiary, TSB. On the back of that, shareholder remuneration is estimated to be 6.3 billion euros over the three-year period.

This will be achieved through above-market growth of the Bank’s commercial activity in Spain across most business segments, accompanied by a 5% annual increase in the loan book, an improved risk profile, increased revenues, and the continuation of its efficient cost management.