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FINANCIALS: Sabadell: 2Q24 Unsurprisingly Positive, Spreads Already Tight

FINANCIALS

Sabadell (SABSM : BBB- pos/BBB) results headlines are unsurprisingly good as it attempts to fend off the BBVA bid, guidance upgrades (NII, RoTE), CET1 beat, loan losses look 9% better than consensus and NPLs are lower, too. Spreads have been great performers (following the bid), much as these are good numbers, tough to see them pushing tighter, we fear. Positive lateral for other Spanish issuers, though (Caixa, Kutxa, Ibercaja, Abanca, Unicaja).

  • “*SABADELL TO RAISE PAYOUT TO 60%, FROM 55% IN 2023
  • *SABADELL 2Q CET1 RATIO FULLY-LOADED 13.5%, EST. 13.4%
  • *SABADELL 2Q NET INCOME EU483M, EST. EU423M
  • *SABADELL 2Q NET INTEREST INCOME EU1.26B, EST. EU1.24B
  • *SABADELL SEES FY ROTE ABOVE +13%, SAW ABOVE +12%
  • *SABADELL BOOSTS 2024 NII GUIDANCE TO MID-SINGLE DIGIT GROWTH” - BBG

Conf call is 0800 (London time) at: https://sabadellresultados.com/2024_02/

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