Sabadell stock: Q3 recurring profit rises as NII outlook trims

Published on 10/30/2026 at 11:16 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Sabadell stock follows stronger recurring profit and firmer core revenue in the third quarter. The bank trims its 2026 interest-income outlook.

Profit growth and shareholder returns

Third-quarter recurring profit increased 13% from the previous quarter to EUR 405 million.
Banco Sabadell kept its 2026 recurring RoTE target at 14.5% and expects 16% in 2027.
The bank will pay an interim cash dividend of EUR 0.07 per share on December 29.

Sabadell, ES0113860A34, Illustration mit AI erstellt.

Banco Sabadell reported stronger recurring earnings for the third quarter on Thursday, October 29, while slightly lowering its full-year net interest income outlook. In a Banco Sabadell press release, the lender said recurring profit reached EUR 405 million, 13% above the second quarter.

Core banking revenue, excluding TSB, rose 2.4% quarter on quarter to EUR 1.26 billion. Net interest income increased 2% to EUR 920 million, while fees and commissions gained 3.7% to EUR 340 million. The figures point to a recovery in recurring revenue after the sale of the British subsidiary TSB shifted the group's comparison base.

Guidance shifts as revenue recovers

Banco Sabadell expects net interest income to grow 1% in 2026, a slightly lower outlook than its previous guidance. The bank said deposit costs were rising faster than expected, limiting part of the benefit from improved lending volumes. Fee income is expected to increase about 4% for the year, while recurring costs are forecast to rise about 2%.

Management maintained its profitability targets. Recurring return on tangible equity rose from 13.6% in June to 14.2% in the third quarter, leaving the bank on track for 14.5% in 2026 and 16% in 2027. Credit quality also improved: the non-performing loan ratio fell to 2.4% from 2.47% in the previous quarter and 2.75% a year earlier.

Dividend adds to capital return

The bank announced an interim cash dividend of EUR 0.07 per share, payable on December 29, for a total distribution of EUR 325 million. That follows an extraordinary EUR 0.50 per-share dividend paid in May after the TSB sale. Sabadell also said EUR 57 million remained to be executed under its EUR 331 million share buyback programme.

Banco Sabadell's reported net profit for the first nine months was EUR 1.376 billion, down 1% year on year and including TSB's contribution during the first four months of 2026. The period included a EUR 322 million after-tax gain from the TSB sale and EUR 88 million in non-recurring early-retirement costs, making recurring figures more relevant for assessing the underlying trend.

Sabadell stock traded at EUR 3.49 on Lang & Schwarz at 11:08:26 CET on Friday, October 30, 2026. The real-time quote of Sabadell stock provides the current market indication.

For investors, the quarter combines improving recurring revenue and asset quality with a modestly less favorable near-term interest-income outlook. The next scheduled investor event listed by the company is a UBS European Conference in London on November 10, 2026.

European bank shares remain sensitive to interest-rate expectations, deposit pricing and credit trends; current current market reports provide the broader DAX context.

See More news and analyses on Sabadell stock.