Bank earns 393 million euros after improving interest and commission margin amid rising interest rates
Banco Sabadell closed the first half of 2021 with an attributable net profit of 393 million euros, 78.6% more than the same period last year. Excluding TSB, the group’s UK subsidiary, net attributable profit at the end of June was EUR 338 million, up 86.6%. The stock is currently up 1% on the stock market.
These results come on the same day that the coalition partners’ factions are introducing the bill to impose a new tax on banks and electric utilities. The entity’s recurring margin (net interest income plus commissions minus expenses) increased 18.5% year-over-year, after recording banking income (net interest income plus net commissions) of 2,486 million, up 3.8% year-over-year , while net interest income increased year-over-year by 4.2% to 1,757 million thanks to the larger contribution from TSB (14.3%).
Expenses were up to June 1,440 million, down 4.8% in the year, mainly due to savings in staff costs and the reduction in overheads, while the bank recorded a 1.6% decrease in costs in the second quarter (the entity estimates savings of 110 million in 2022 and 130 per year from 2023).
Net commissions rose 2.8% year-on-year to EUR 729 million, supported by a larger contribution from TSB, which was 14.8% higher than the previous year.
As for mortgage production in the last quarter, it reached 1,501 million euros, again marking a “record” of production and an increase of 19% compared to the previous quarter, while live credit ended June with a balance of 158,074 million.
Consumer credit increased by 17% quarter on quarter to EUR 805 million; card billing grew 16% compared to the first quarter to EUR 5,541 million, and POS billing grew 27% to EUR 12,111 million in the quarter.
At the same time, investment funds totaled 22,538 million, down 5% quarter-on-quarter as a result of ‘financial market volatility’.
Over the six-month period, balance sheet client funds reached 163,391 million euros (122,286 Ex TSB) and grew 3.8% year-over-year (5.5% Ex TSB) and 1.3% in the quarter (2.7% Ex TSB) due to the “positive” evolution of current accounts and term deposits.
Current account balances were 147,892 million (108,447 Ex TSB), up 5.6% year-over-year (7.6% Ex TSB) and up 0.9% (2% Ex TSB) in the quarter.
The term deposits amount to 15,980 million euros (14,320 Ex TSB) and decreased by 9.4% (7.3% Ex TSB) compared to last year; in the quarter they were down 3.9% (6.6% Ex TSB).
At the end of June, off-balance sheet customer money was EUR 38,831 million, a 4.7% year-on-year decline due to the sale of BancSabadell d’Andorra and a 4.4% quarter-on-quarter decline due to financial market volatility. markets.
Source: La Verdad
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