Banco Sabadell Trims NII Outlook as Q3 Recurring Profit Rises 13% Quarter Over Quarter

Banco Sabadell trimmed its 2026 net interest income growth outlook to about 1% on Oct. 29, while third-quarter recurring net profit climbed 13% from the previous quarter to €405 million.

That projection is below the bank’s July forecast of growth above 1%. The October guidance points to a reduction but does not quantify its size.

For July through September, core banking revenue excluding TSB reached €1.26 billion, up 2.4% from the second quarter. The measure combines net interest income with fees and commissions, before expenses are deducted. Net interest income totaled €920 million, up 2% from Q2, while fees and commissions came to €340 million, a 3.7% increase. Together, those two lines made up the core revenue total.

Chief Financial Officer Sergio Palavecino said, “Our third-quarter results demonstrate the quality and recurring nature of our generation of profits.”

For January through September, net profit was €1.376 billion, down 1% from a year earlier. Recurring net profit for the same period was €1.096 billion, a 5.3% decline. The recurring measure fell more than the reported total on a year-over-year basis.

The two nine-month figures use different scopes. TSB contributed €79 million in profit during its first four months in the group in 2026, and one-off items added a net €201 million. Those items included a €322 million after-tax gain from the sale of TSB. The reported total includes the TSB contribution and one-off items; the recurring figure excludes them. The third-quarter profit increase is a quarter-over-quarter comparison, while the nine-month figures are compared with a year earlier.

Banco Sabadell will pay an interim cash dividend of €0.07 per share on Dec. 29, distributing €325 million.