The entity achieves a return on tangible capital (ROTE) of 8%

Banco Sabadell has registered a net profit of 709 million from January to September, which is nearly double compared to the 370 million for the same period of the previous year, as reported this Thursday to the National Securities Market Commission (CNMV).

Without taking into account TSB, the British subsidiary of the Catalan group, net attributable profit stands at 616 million euros in these nine months, more than double that of 2021, when this figure stood at 288 million euros.

Revenues from the banking business --interest margin plus net commissions-- were 3,840 million euros, 5.7% more year-on-year, and the entity achieved a return on tangible capital (ROTE) of 8%, above of the objective of the strategic plan.

The interest margin has increased by 6.2% compared to last year to 2,722 million, commissions have increased by 4.5%, to 1,118 million, and total costs stand at 2,162 million at the end of the quarter , 15.2% more year-on-year.

The bank has explained that recurring costs also decreased by 3.8% in the year-on-year comparison, mainly due to savings in personnel expenses after the efficiency plans in Spain, as well as the reduction in general expenses.

The entity's outstanding credit has closed September with a balance of 156,675 million (113,818 million Ex TSB), and investment growth is 2.9% year-on-year, driven "by the good dynamics in all geographies".

Mortgage production in Spain has reached 1,472 million euros, which represents an increase of 7% year-on-year, new consumer credit has increased by 18% year-on-year, to 439 million euros.

The new production of cards and POS terminals represents a "historic record" for the entity, since card billing grew by 17% year-on-year, reaching 5,826 million, and POS billing 33% in the same period, standing at 13,604 million.

CUSTOMER RESOURCES

On-balance sheet customer funds totaled 163,247 million euros at the end of September (123,084 million Ex TSB) and grew by 3.4% year-on-year (5.7% Ex TSB) due to the evolution of sight accounts and term deposits .

Sight account balances amounted to 147,664 million euros (109,315 million Ex TSB), with an increase of 3.8% year-on-year (6.2% ex TSB) and term deposits reached 15,905 million (14,091 million Ex TSB) and grew by 0.9% (3.3% Ex TSB).

Off-balance sheet customer funds stood at 38,049 million euros, which represents a drop of 8.7% year-on-year and 2.0% in the quarter, mainly due to investment funds impacted by market volatility financial.

In fact, investment funds total 22,024 million, a reduction of 10% year-on-year due to the volatility of the financial markets

The group's total assets amounted to 260,407 million euros (207,677 million Ex TSB), which represents a growth of 4.2% year-on-year (3.2% Ex TSB) and 1.2% in the quarter (1.3 % Ex TSB).

LIQUIDITY AND CAPITAL

The 'phase in' CET1 ratio stood at 12.65% at the end of September and grew 4bps compared to the previous quarter, the fully-loaded CET1 ratio stood at 12.52% and increased 4bps in the quarter and the Total phase-in capital ratio amounts to 17.08% at the end of the quarter.

As for liquidity management, the LCR (Liquidity Coverage Ratio) reached 217% at the group level, and problem assets totaled 7,039 million euros at the end of September, of which 5,830 million were doubtful loans and 1,209 million foreclosed assets.

The coverage of problem assets with total provisions stands at 52.3%, with the coverage of doubtful loans with total provisions being 55.1% and 38.9% for foreclosed assets.

The NPL ratio at the end of September stood at 3.40%, which compares with 3.59% in the same month of the previous year and the cost of credit risk stood at 39bps at the end of the third quarter of 2022, a reduction of 12 bps year-on-year.

TSB: 93 MILLION

TSB contributes to the results of the group with 93 million euros until September, compared to 82 million in 2021, after obtaining a net profit of 103 million pounds with a growth in the basic margin.

The British bank has increased its recurring margin by 81% in the year-on-year comparison, a percentage that stands at 27% quarter-on-quarter, and its net interest income reached 718 million pounds at the end of September and increased by 11.7% year-on-year due to the strong growth in mortgage volumes in the year.