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Sabadell's Q3 underlying net profit up 18%, supported by lending income - Finance news and analysis from Global Banking & Finance Review
Finance

Sabadell's Q3 underlying net profit up 18%, supported by lending income

Published by Global Banking & Finance Review

Posted on October 29, 2026

2 min read

· Last updated: October 29, 2026

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Sabadell Q3 2025 Underlying Net Profit Climbs 18% on Lending Income Surge

Strong Lending Income Drives Sabadell’s Q3 2025 Performance

MADRID, Oct 29 (Reuters) - Spain's Sabadell said on Thursday its third-quarter underlying net profit rose 18% from the same period in 2025, supported by higher lending income.

Retail Lending and Interest Rate Impact

Spanish banks are mainly retail lenders and have historically benefited from variable-rate lending. Higher interest rates are starting to support margins on their loan books, although that is being partially offset by a repricing in deposits paid out to clients.

Key Financial Results

  • The country's fourth-largest bank by market value reported a net profit of €405 million ($452 million) in the July to September period.
  • Analysts polled by Reuters expected a net profit of €375 million.
Comparison with Previous Year and TSB Impact
  • The bank provided a pro forma excluding TSB in the third quarter of 2025 for the comparison, as TSB was part of the perimeter then.
  • Attributable reported net profit fell 2% when taking into account TSB in the same quarter last year.

Strategic Shift and Future Outlook

  • The Spanish bank's strategy has shifted to a standalone approach after TSB's sale in May, and analysts are now watching whether Sabadell will be able to maintain growth rates.
  • Sabadell's net interest income, or earnings on loans minus deposit costs, rose 2% year-on-year on a pro forma basis in the quarter to €920 million, slightly below analysts' forecasts of €923 million.($1 = 0.8959 euros)
Reporting and Editorial Credits

(Reporting by Jesús Aguado; editing by Emma Pinedo and David Latona)

Key Takeaways

  • Underlying net profit rose 18% y‑o‑y to €405 million in Q3, exceeding a consensus of €375 million (cincodias.elpais.com).
  • Net interest income reached €920 million, up 2% pro forma, slightly below forecast of €923 million (cincodias.elpais.com).
  • Spain’s retail‑oriented, variable‑rate lending model supports margins amid rising interest rates, helping banks like Sabadell benefit despite pressure from rising deposit costs (elpais.com).

Frequently Asked Questions

What was Sabadell's underlying net profit in Q3 2025?
Sabadell reported an underlying net profit of €405 million in the third quarter of 2025.
What supported the increase in Sabadell's Q3 net profit?
The increase was supported by higher lending income due to rising interest rates.
How did Sabadell's reported profit compare to analyst expectations?
Sabadell's net profit of €405 million exceeded analyst expectations of €375 million for Q3.
What effect did the TSB sale have on Sabadell's results?
The sale of TSB shifted Sabadell's strategy to a standalone approach, affecting year-over-year comparisons.
How did net interest income perform for Sabadell in Q3 2025?
Net interest income grew 2% year-on-year to €920 million, slightly below forecasts.

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