Sabadell stock faces softer mortgages as guidance turns cautious
Published on 11/12/2026 at 11:28 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSOutlook and mortgage demand
- Banco Sabadell lowered its 2026 growth outlook for net interest income and commissions.
- Management sees a marked slowdown in mortgage demand, although new lending has not yet declined.
- The bank kept its recurring return on tangible equity targets and plans a gross interim dividend for December.
Banco Sabadell has made parts of its 2026 outlook more cautious while warning that mortgage demand is losing momentum. The update, reported by AD HOC NEWS on Wednesday, November 11, followed the bank's third-quarter results presentation on October 29.
Chief executive Marc Armengol said Banco Sabadell now expects 2026 net interest income growth of about 1%, compared with an earlier outlook above 1%. The commission-growth forecast was reduced to 4% from a mid-single-digit expectation. At the same time, the cost-growth forecast improved to 2% from slightly below 3%, supporting the bank's effort to protect profitability through operating discipline.
Mortgage momentum is easing
Management said housing activity is weakening and mortgage demand is slowing notably. New mortgage lending has not yet declined, but Armengol indicated that a fall could emerge in coming quarters. The mortgage loan book stood at 40.716 billion euros, while the bank's official third-quarter presentation reported mortgage balances up 3.5% year on year and new quarterly production up 5%.
The softer housing backdrop creates a risk for future loan growth and interest income. Investors will watch whether improving customer margins, fee income and cost control can offset weaker mortgage momentum. Chief financial officer Sergio Palavecino said customer margins should rise in the fourth quarter and through 2027.
Profitability targets remain in place
Banco Sabadell reported recurring third-quarter profit of 405 million euros, 13% above the second quarter, according to the company. It retained recurring return on tangible equity targets of 14.5% for 2026 and 16% for 2027. The bank also plans a gross interim cash dividend of 0.07 euros per share, payable on December 29, with total remuneration of 325 million euros.
Sabadell stock traded at 3.76 euros on Lang & Schwarz at 11:21 CET on Thursday, November 12, 2026. The latest market report from The Officer said the share closed the November 11 session at 3.75 euros, after ending the previous session at 3.77 euros.
Banco de Sabadell share facts
- Company: Banco de Sabadell, S.A.
- ISIN: ES0113860A34
- Ticker: SAB.MC
- Home exchange: BME
- Sector: Banking
- Lang & Schwarz quote: 3.76 euros at 11:21 CET on November 12, 2026
- Interim dividend: 0.07 euros gross per share, payable December 29, 2026
The IBEX 35 remains the relevant Spanish market backdrop; see current market reports.
Banco Sabadell's investor calendar lists a UniCredit FI Talks event in Milan for November 17, followed by further investor meetings later in the month. More news and analyses on Sabadell stock.
