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Investing.com -- Banco de Sabadell SA (BME:SABE) posted a stronger-than-expected rise in first-quarter net profit, strengthening its argument for remaining independent as it pushes back against a hostile takeover attempt by Banco Bilbao (NYSE:BBVA).
Net profit surged 59% year-on-year to 489 million euros ($552.7 million), ahead of the 438 million euros expected by analysts, according to company-compiled consensus figures.
Net interest income reached 1.22 billion euros, matching forecasts, as higher margins on loans continued to support earnings. Gross operating income rose 14% to 1.64 billion euros, also exceeding the 1.61 billion-euro estimate.
Revenue came in at €1.64 billion, around 2% above consensus, supported by strong trading income of €33 million and €61 million from equity method results and dividends. This was partially offset by other income and costs totaling -€12 million.
The results come at a crucial time for Sabadell, which is defending its standalone strategy amid BBVA’s unsolicited bid. While the proposed deal has cleared Spain’s competition authority, it continues to face political resistance.
With its first-quarter results, Sabadell announced an increase in 2025 shareholder remuneration by €0.1 billion to €1.3 billion, implying a yield of around 10%. The bank also aims to maintain at least the same cash dividend level as in 2024.
The bank’s guidance for the full-year 2025 remained unchanged.
"We expect the focus of today’s call to be on additional details on the upcoming Capital Markets Day and recent developments regarding the BBVA (BME:BBVA) takeover bid," RBC Capital Markets analysts said in a post-earnings note.
Analysts at JPMorgan said they expect the questions on the call to be whether the profit and loss item guidance for 2025 remains intact.