Banco Sabadell has set a target to return €6.3 billion to shareholders between 2025 and 2027, including an extraordinary dividend linked to the planned sale of TSB, under its new three-year strategic plan.
For households and businesses seeking credit in Spain, the bank says it intends to expand its credit balance by about 5% a year, ahead of the market, while focusing its commercial strategy on Spain. The plan was presented by the bank on 24 July 2025.
Profit and return targets through 2027
According to Banco Sabadell’s strategic-plan announcement, the bank expects profit to exceed €1.6 billion in 2027, excluding TSB.
It is targeting a return on tangible equity, known as RoTE, of 16% in 2027. The bank reported recurring RoTE of 14.4% in the first half of 2025, up from 14%.
- €6.3 billion in planned shareholder returns over 2025–2027.
- Average annual capital generation of 175 basis points.
- More than €1.6 billion in expected 2027 profit, excluding TSB.
- A non-performing loan ratio below 2.5% and cost of risk of around 40 basis points in 2027.
“Following our record profit in the first half, Banco Sabadell has set out a clear plan to deliver sustainable, recurring growth in the coming years.”César González-Bueno, Banco Sabadell
Spain-focused lending and shareholder payments
The bank reported first-half profit of €975 million, a 23.3% increase. Its plan envisages ordinary cash dividends in 2025, 2026 and 2027 that exceed the 20.44 cents gross per share paid for 2024.
Banco Sabadell says its credit balance should grow by around 5% annually and that it will seek growth above the market in most commercial segments in Spain. Customers and investors can check the bank’s published targets on its strategic-plan announcement.
Primary sources: econ-papers.upf.edu. Reported by viaempresa.cat, ddd.uab.cat, Grupo Banco Sabadell, VIA Empresa.
