Shares of Banco de Sabadell saw a surge on Thursday following the announcement of its interim dividend and the release of its impressive third-quarter financial results.
At 0853 GMT, the shares traded 4.3% higher at EUR1.08.
During the third quarter, Sabadell reported a net profit of 464 million euros ($490.3 million), a significant increase from the prior year's figure of EUR317 million. This growth can be attributed to the bank's gross operating income, which saw a 17% increase to reach EUR1.64 billion.
Furthermore, Sabadell announced that it would be paying an interim dividend of EUR0.03 per share, representing a 50% increase compared to the previous year.
In addition to these positive developments, Sabadell also raised its guidance for the year, now expecting net interest income growth of around 25%, up from the previous estimate of greater than 20%. The bank also forecasted a return on tangible equity (RoTE) of around 11.5%, an improvement from the previous estimate of around 10.5%. Importantly, the bank anticipates further improvement in its RoTE by the year 2024.
Analysts at Citi praised Sabadell's strong performance, with the bank's profit surpassing expectations by 23%. The increase in net interest income during the quarter was identified as a key driver for this success. Citi analysts further noted that the improved guidance suggests an approximate 16% upgrade to earnings per share consensus.
Overall, Banco de Sabadell's third-quarter results and optimistic outlook for the future showcase the bank's resilience and potential for continued growth.
Ten-year Treasury yields remain close to seven-week lows as investors anticipate a potential interest rate cut. The CME FedWatch tool shows a high probability o...
Get the latest updates on U.S. futures, European market, currency, commodity, bond market, and Asian stocks.
Canadian Prime Minister Justin Trudeau and his wife, Sophie Gregoire Trudeau, have announced their separation after 18 years of marriage. This decision was made...