Sabadell stock draws focus after stronger Q3 profit and new dividend

Banco Sabadell reported stronger recurring earnings for the third quarter on October 29, while announcing a new cash distribution for shareholders. In its official results release, the Spanish lender said recurring profit reached 405 million euros in the third quarter, 13% above the second quarter.

Net profit for the first nine months came to 1.376 billion euros, 1% below the year-earlier period. The comparison includes TSB for four months before its sale, while the recurring nine-month profit reached 1.096 billion euros. The bank also reported a net after-tax gain of 322 million euros from the TSB sale and other one-off effects, making the reported and recurring figures materially different.

Revenue momentum returns

Core banking revenue excluding TSB returned to quarterly growth, rising 2.4% from the second quarter. Net interest income increased 2% to 920 million euros, while fees and commissions rose 3.7% to 340 million euros. Recurring costs slipped 0.1% in the quarter, although the bank now expects full-year 2026 recurring costs to grow by about 2%.

Commercial activity remained supportive. Performing loans grew 4% year on year, customer funds increased 5.6%, and the non-performing-loan ratio improved to 2.4% from 2.47% in the previous quarter and 2.75% a year earlier. The bank said its fully loaded CET1 ratio stood at 13.12%.

Recurring return on tangible equity rose to 14.2% from 13.6% in June. Management continues to target recurrent RoTE of 14.5% for 2026 and 16% for 2027, supported by revenue growth, cost discipline and asset quality. The bank expects full-year net interest income to increase by about 1% and fee income by about 4%.

Cash payout due in December

Banco Sabadell will pay an interim cash dividend of 0.07 euros per share on December 29, distributing 325 million euros. The payment follows the 331 million euro share buyback launched in July, of which 57 million euros remained to be executed when the results were published. It also follows the 0.50 euro extraordinary cash dividend paid in May after the TSB sale.

Sabadell stock traded at 3.50 euros on Lang & Schwarz at 10:51 CET on Monday, November 2, 2026. Investors can follow the real-time quote of Sabadell stock.

The broader Spanish market remains the relevant backdrop for the stock, with the IBEX 35 providing the main domestic benchmark.

Banco Sabadell's investor calendar lists conferences in London, Milan and Madrid during November, including the UBS European Conference on November 10. More updates are available in more news and analyses on Sabadell stock.