Sabadell is executing a structural shift toward profitable growth through improved asset quality, lending to clients with better credit ratings, resulting in approximately 50% reduction in probability of default for new lending in 2025 compared to 2023. The bank agreed to sell its TSB subsidiary to Santander in July 2025, allowing it to exit the challenging U.K. market and focus entirely on its higher-return Spanish franchise.
Cyborg Score Rationale
Sabadell reported 2025 net profit of €1.78 billion, down 2.8% year-over-year, but is executing a strategic repositioning with strong domestic fundamentals. The bank announced €1.5 billion in shareholder remuneration for 2025 and plans €2.5 billion total remuneration over 2026-2027, plus a €700 million extraordinary dividend from the TSB sale.
Top Insights
Household lending grew strongly with mortgages up 17% and consumer loans up 16% in 2025; savings and investment products increased €4.2 billion year-over-year to €70.6 billion
Core Spanish business is healthy with performing loan volumes growing 5.9% year-over-year and strong momentum in commercial banking
Bank has invested heavily in digital transformation with mobile apps for online banking, electronic payment systems, and other innovative services
Management targets mid-single-digit loan growth and further reductions in cost of risk going forward
Named Competitors
BBVA — Spain's largest banking group
CaixaBank — Spain's third-largest banking group
Santander — Major Spanish multinational bank
Recent Developments
(February 2026) FY2025 results released: net profit €1.78B (-2.8% YoY); €1.5B shareholder remuneration package including €800M share buyback authorized
(July 2025) TSB sale to Santander completed; positions bank to focus on Spanish franchise with higher returns
(Q3 2025) Core Spanish business performing well with 5.9% performing loan growth and improved asset quality metrics
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