Sabadell stock: Q3 profit rises as dividend plan adds investor focus

Published on 10/31/2026 at 10:20 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Sabadell stock follows stronger third-quarter recurring profit and a new interim dividend plan. Management kept its profitability targets in view.

Profit growth and shareholder returns

Recurring third-quarter profit increased as core banking revenue returned to quarterly growth.
Banco Sabadell plans a 7 euro-cent interim cash dividend for December 29.
Management remains on track for its 2026 and 2027 profitability targets.

Sabadell, ES0113860A34, Illustration mit AI erstellt.

Banco Sabadell reported stronger recurring earnings for the third quarter on October 29 and announced a new interim cash dividend. The release from Banco Sabadell put recurring third-quarter profit at 405 million euros, up 13 percent from the second quarter.

Quarterly revenue regains momentum

Core banking revenue, excluding TSB, reached 1,260 million euros in the quarter, up 2.4 percent from the previous quarter. Net interest income rose 2 percent to 920 million euros, while fees and commissions increased 3.7 percent to 340 million euros.

The bank expects full-year net interest income to rise by around 1 percent. Fee income is expected to grow by around 4 percent, while recurring costs are forecast to increase by around 2 percent in 2026. The company said asset quality also improved, with the non-performing loan ratio falling to 2.4 percent.

Dividend adds shareholder focus

Banco Sabadell plans to pay an interim cash dividend of 7 euro cents per share on December 29. The total distribution will amount to 325 million euros. The bank also said 75 million euros remained under its share buyback programme at the time of the announcement.

Profitability measured by recurring return on tangible equity reached 14.2 percent. Management remains on track for targets of 14.5 percent in 2026 and 16 percent in 2027, although reported nine-month net profit of 1,376 million euros was 1 percent below the prior-year period and included TSB's contribution before its sale.

Sabadell stock traded at 3.42 euros on Lang & Schwarz at 10:18 CET on Saturday, October 31.

Investors can follow the real-time quote of Sabadell stock.