Banco Sabadell: 2Q26 first take: Underlying P&L trends look better and new buyback

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Banco Sabadell: 2Q26 first take: Underlying P&L trends look better and new buyback

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Banco Sabadell

2Q26 first take: Underlying P&L trends

look better and new buyback

Reiterate Rating: NEUTRAL | PO: 3.60 EUR | Price: 3.26 EUR

Net profit in 2Q affected by TSB 24 July 2026

2Q26 reported profits were affected by a number of one-offs related to TSB. Underlying Equity

trends however look better, and on our adjustments seem to be c.+2% beat to BofA est

and +6% ahead to adjusted consensus. NII and costs were the main drivers behind the AntonioResearch RealeAnalyst>>

underlying beat. Guidance confirmed throughout, cost guide slightly improved. A new MLI (UK)

+44 20 7996 1763

buyback of €331m was also announced. We expect a positive share price performance on antonio.reale@bofa.com

the day. Neutral. Rohan Datta, CFA >>

NII was 1% beat in 2Q; trough behind us ResearchMLI (UK) Analyst

+44 20 7995 8102

NII was +3% QoQ and 1% beat vs. expectations. The NII evolution was affected by rohan.datta@bofa.com

higher contribution from ALCO/liquidity, better volumes and day-count. Customer

spreads were flat to 284bps in 2Q26, -1bps QoQ (285bps in 1Q). Loan yields were stable

from 363bps to 362bps (lag effect on repricing), while deposit costs were flat QoQ.

Stock Data

Loans were +3% QoQ. Deposits (ex repos) were -1% QoQ. Guidance for 2026e NII to

grow >1% and reach mid single-digit growth from 4Q26. NII trough guided to be 1Q and Price 3.26 EUR

to increase at ‘low single digit quarterly’. Consensus is for +1% YoY in NII in 2026. Price Objective 3.60 EUR

Fees were inline; mid-single digit growth maintained Date Established 09-Jan-2026 Investment Opinion B-2-7

Fees stood at €328m in 2Q, inline with consensus. QoQ trends were positively affected 52-Week Range 2.47 EUR-3.33 EUR