The banking entity publicly released its financial results for the January-June period this Friday. This semester was marked by the sale of its UK subsidiary, TSB, to Banco Santander, a transaction finalized on May 1st. According to data submitted to the National Securities Market Commission (CNMV), total earnings reached 892 million euros excluding the British subsidiary. On a quarterly basis, Sabadell's profit stood at 608 million, a 14.3% increase.
The first-half results also reflect an extraordinary negative impact from the early retirement plan implemented in Spain. Nevertheless, the combined balance of these two extraordinary effects resulted in a net positive contribution of 201 million euros to the income statement.
Excluding the contribution from TSB and extraordinary impacts, semi-annual earnings amount to 691 million euros, a 14.1% decrease compared to the same period last year. Despite this, the bank highlights an 8.4% semi-annual growth in activity, which it attributes to commercial dynamism and anticipates this positive trend will continue in the coming quarters. Furthermore, the entity has announced that it will initiate a new share buyback next week valued at 331 million euros.
Regarding the net interest margin, there was a 1.7% decrease to 2,417 million euros between January and June, standing at 1,774 million euros, 2% less than the previous year. Commissions also saw a slight decrease, with 643 million, down 0.9%. However, the bank emphasizes a trend reversal in the net interest margin during the second quarter, with a 3.4% growth to 902 million, and a 4% increase in quarterly commissions, reaching 328 million.
