The impact of the new tax on banks caused Banc Sabadell to reduce its net profit by 4% in the first quarter of the year compared to 2022. The entity headed by César González-Bueno paid 157 million for this tax. Therefore, without the new tax obligation, the bank’s profit would have grown by almost 70% in the period analyzed.
Sabadell -like the rest of the banks affected by the tax change- has charged the tax in the first quarter, so it is expected that in the coming periods they will once again register increases in year-on-year profits. Proof of the good evolution of the business is that the recurring margin that adds the interest margin and commissions and subtracts costs increased by 46.7% year-on-year.
The CEO, César González-Bueno, stated in a statement that “we started the year well”. For his part, the financial director of Banco Sabadell, Leopoldo Alvear, remarked that “we closed a good quarter with a solvency ratio of 12.78%”. The NPL ratio was 3.52%. It is slightly below the 3.66% of the first quarter of the previous year
Banco Sabadell’s outstanding credit ended the month of March 2023 with a balance of 152,637 million euros (-1.4% year-on-year) and the mortgage portfolio in Spain reached 38,894 million, with growth of 0.7%; while credit to SMEs and large companies closed at 42,590 million, 0.7% less than in the same period of the previous year.
While TSB continued on its positive path, closing the first quarter of 2023 with an individual profit after tax of 54 million pounds. The positive contribution to the group’s accounts amounted to 53 million euros.
In the year-on-year comparison, it is surprising that the bank has increased its workforce by almost 200 people, to 19,151. The increase in staff has focused on the Spanish business. This increase is part of a program for recruiting and incorporating young talent.
