Banco Sabadell has presented its results for the first half of 2026, a period marked by the sale of its British subsidiary TSB to Santander and the initial steps of the new management. Net profit reached €971 million , virtually unchanged from the previous year (-0,5%), but this figure includes the contribution from TSB for four months and extraordinary capital gains. Excluding these effects, recurring profit was €691 million, 14,1% lower than in 2025.
However, the most significant development is the change in trend observed in the second quarter. Between April and June, recurring profit grew by 8,4% compared to the first quarter , driven by increased commercial activity. CEO Marc Armengol stated that the bank has left behind the "post-takeover slump" and that revenues will continue to increase in the coming months.
First half results: revenue and margins
Banking revenues (net interest income plus fees) reached €2.417 billion in the first half of the year, 1,7% lower than in 2025. However, second-quarter revenues totaled €1.230 billion, 3,6% higher than in the first quarter , confirming the recovery anticipated by the bank. Net interest income, which for the first half of the year was €1.774 billion (-2%), also improved quarterly by 3,4% to €902 million, thanks to a higher loan volume.
Net commissions, meanwhile, totaled €643 million through June (-0,9%), but grew by 4% in the second quarter compared to the previous quarter, reaching €328 million , supported by the credit card and syndicated loan business. The bank expects this trend to continue in the second half of the year.
On the cost side, total expenses for the first half of the year amounted to €1.227 billion, a 13% increase, due to the €88 million in non-recurring costs related to the early retirement plan in Spain, which has now been completed. This plan will generate savings of €20 million in 2026 and €40 million annually from 2027 onwards , allowing recurring costs to grow by less than 3% by year-end.
Growth in credit and customer resources
Commercial activity has translated into a 5,5% year-on-year increase in outstanding loans, reaching nearly €125.200 billion. In Spain, growth was 3,6%, reaching €107.100 billion, with gains across all segments. Credit to SMEs and large companies approached €45.700 billion, 1,9% higher than a year ago , and new quarterly lending surged by 38%.
In mortgages, the outstanding balance reached €40.200 billion (+3,4% year-on-year), with quarterly growth in new lending of 22%. Consumer credit also rebounded strongly: €5.600 billion, 12,7% more than in 2025 , and quarterly new lending increased by 9%. Meanwhile, customer funds grew by 6,4% to €188.110 billion, driven by deposits, investment funds, and wealth management.
Asset quality continues to improve. The non-performing loan ratio fell to 2,47% in the second quarter , compared to 2,55% in the previous quarter, and problem assets decreased by €44 million in the quarter and by €421 million over the last twelve months. The cost of risk stood at 40 basis points, within the forecast for the year.
Corporate strategy and moves
Alongside its results, Banco Sabadell announced a new share buyback program worth €331 million, equivalent to 2,1% of its share capital, which will begin next week. In addition, it has cancelled 119,8 million treasury shares, reducing its share capital by €14,97 million . The bank remains committed to returning €2.500 billion to shareholders between 2026 and 2027, and its fully loaded CET1 capital ratio stands at 13,11%.
On the strategic front, the bank has appointed Adela MartÃn as its new head of private banking. MartÃn, formerly of Santander and with extensive experience at Bankinter, will assume leadership of Sabadell Urquijo Private Banking , which manages €79.000 billion for more than 145.000 clients, with a network of 500 bankers. Her appointment is part of the bank's objective to make Sabadell the leading private banking firm in Spain, as explained by the CEO.
The bank is confident that business growth, cost containment, and improved profitability will allow it to achieve a RoTE of 14,5% this year and 16% in 2027. With these elements, Sabadell seeks to demonstrate that its independent project is capable of generating value for shareholders, after having rejected BBVA's takeover bid.
